Cerillion confident despite fall in total new orders

Billing and customer relationship software company Cerillion reported a 16% improvement in revenue in its first half on Monday, to £16.1m, amid ongoing major implementation projects for new customers and new orders from existing customers, although total new orders fell.

The AIM-traded firm said annualised recurring revenue at the end of the period on 31 March was up 9% to £9.8m, with an increased uptake of its managed services.

Adjusted EBITDA improved 50% year-on-year to £7.2m, and adjusted profit before tax was 65% firmer at £6.3m.

Total new orders decreased to £10.9m from £23.6m year-on-year, however the board said new orders from existing customers increased 12% to £10.9m, with its new customer pipeline up 31% to £172m - a new record level.

Cerillion said new major customer signings were expected in the second half and beyond, as it maintained a “strong” back order book at £39.7m, compared to £42.1m a year earlier.

Adjusted earnings per share grew 62% to 18.6p, and the company recorded a 114% rise in net cash from a year earlier, to £16.5m.

The board hiked the interim dividend by 24% to 2.6p per share.

“Our interim results set new records for revenue, adjusted profit before tax and net cash across any six-month period, and demonstrate the strong momentum in the business,” said chief executive officer Louis Hall.

“We have made good operational progress in the period as well.

“The new team we have established in Bulgaria is part of our push to accelerate recruitment and diversify our talent base to meet growing demand.”

]Hall said the company saw “excellent opportunities” for continuing growth, with the new customer sales pipeline growing “significantly”.

“Given the company's progress, and its strong financial and operational position, we continue to view prospects very positively.”

At 1220 BST, shares in Cerillion were down 5.03% at 726.5p.