Cerillion reports strong first-half performance

The AIM-traded firm reported a 27% increase in revenue to £20.5m, which it put down to the ongoing implementation of projects for new customers, as well as new orders from existing customers.

Its annualised recurring revenue also experienced significant growth, rising 34% to £13.1m, primarily driven by increased uptake of managed services.

Cerillion's adjusted EBITDA rose 38% to £10m, while its adjusted profit before tax advanced 46% to £9.2m.

Adjusted earnings per share also demonstrated positive growth, increasing 37% to 25.5p.

The company said its back-order book saw an 8% rise, reaching £43m, while total new orders increased 40% to £15.3m.

Additionally, Cerillion's new customer pipeline reached a record high of £212m, reflecting a 23% increase compared to the previous year.

The firm’s net cash showed substantial growth as well, rising by 43% to reach £23.6m at period-end on 31 March.

Operationally, Cerillion expanded its workforce by establishing new offices in Sofia, Bulgaria, as well as Ahmedabad and Indore, India.

The firm also secured two major new contracts with existing customers in the Europe, Middle East and Africa (EMEA) region.

It said the first contract, valued at about £10m, was an extension of a 20-year relationship, while the second contract, worth around £6m, would span a five-year period.

“Cerillion's interim results again set new records for our key performance indicators in any six-month period, and demonstrate the strong momentum in the business and the significant growth opportunities available,” said chief executive officer Louis Hall.

“We continue to expand our resources and invest in the product suite.”

Hall said that with a strong new customer sales pipeline, including advanced-stage contract discussions with certain potential new customers, as well as healthy demand from existing customers, Cerillion expected continuing strong growth ahead.

“Given the company's progress and prospects, we believe it is well-placed to deliver our full year targets and view the future with confidence.”

At 1152 BST, shares in Cerillion were up 0.12% at 1,204p.

Reporting by Josh White for Sharecast.com.