Cerillion shares rose on Monday after the software firm secured a substantial contract and reported record half-year results.
The London-listed company announced that the deal with an unnamed ‘leading provider of connectivity solutions’ will initially span five years and is valued at $11.1 million. Cerillion informed investors that this customer serves both the business-to-business and business-to-consumer markets across Southern Africa, utilising technologies such as fibre, satellite, microwave, and standalone 5G.
Louis Hall, chief executive of Cerillion, stated: ‘With an ever-growing sales pipeline, increasingly strong demand among telcos for digital transformation via SaaS solutions, and exciting innovations in our product suite, we anticipate continued strong growth. Given the company’s progress, including the major new contract announced today, and our prospects, we believe we are well-placed to meet market expectations for the full year and beyond, and we view the future with confidence.’
The contract announcement coincided with interim results revealing that the company’s sales, profits, and cash reserves reached their highest levels ever in the six months ending March 2024. Turnover increased by 10 per cent to £22.5 million, driven by a strong volume of major implementation projects and rising software demand, which offset a decline in services revenue. Adjusted pre-tax profits surged by 14 per cent to £10.5 million, while cash reserves grew by 13 per cent to £26.6 million.
During the same period, the London-based firm increased its new orders by nearly a third to £20.2 million, largely due to securing a €12.4 million contract with a ‘Tier-1 customer’ in Europe to support all fixed and mobile services. Cerillion expects to meet its annual market forecasts, thanks to a significant backlog of orders, a robust new business pipeline, and ongoing projects.
Hall founded Cerillion in 1999 following the management buyout of the customer care and billing product arm of Logica, a now-defunct computer services consultancy. The company provides billing, charging, and customer management systems software to firms across various sectors, including finance, utilities, healthcare, and telecommunications.
Cerillion shares were up by 1 per cent at 1,591.4p on Monday morning, reflecting a growth of around 32 per cent over the past year.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
