Cerillion H1 profits grow, customer pipeline hits fresh record

Cerillion said interim revenues had risen 10% to £22.5m, reflecting ongoing major implementation projects for new customers and new orders from existing customers, while adjusted underlying earnings also increased 10% to £11.0m and adjusted pre-tax profits were 14% higher at £10.5m.

Adjusted basic earnings per share were up 8% at 27.6p and Cerillion also hiked its interim dividend per share from 3.3p to 4.0p. Net cash improved by 13% to £26.6m.

Cerillion noted that total new orders were up 32% to £20.2m, while its back-order book grew 10% to £47.1m and its new customer pipeline was 20% higher at a record £254.0m.

Chief executive Louis Hall said: "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.

"With an ever-growing sales pipeline, increasingly strong demand amongst telcos for digital transformation via SaaS solutions, and some exciting innovation in our product suite, we expect to continue to grow strongly. Given the company's progress - including the major new contract announced today - and prospects, we believe it is well-placed to deliver market expectations for the full year and beyond, and we view the future with confidence."

Separately, Cerillion announced that it had secured a "major new contract", worth an initial $11.1m, with a "leading provider of connectivity solutions" in Southern Africa. The contract was for an initial five years and had scope to develop further over time.

As of 0950 BST, Cerillion shares were flat at 1,575.0p.

Reporting by Iain Gilbert at Sharecast.com