Cerillion Plc (LON:CER), a leading provider of billing, charging, and customer management systems, has announced that it expects first half revenue and adjusted EBITDA to have increased by 10% in a scheduled trading update ahead of the publication of its interim results in mid-May.
The company reported a revenue of £22.5 million and EBITDA of £10.9 million for the period, slightly ahead of Liberum Capital’s initial estimates. The EBITDA margin stood impressively at 48%, buoyed by lucrative licence income stemming from a significant contract win with a Tier-1 European service operator last November.
Cerillion’s stock performance remained stable post-announcement, reflecting investor confidence in the company’s strategic direction and execution capabilities. Analysts at Liberum have subsequently raised their target price from 1500p to 1650p, citing the company’s sustained double-digit revenue growth and high profit margins, which continue to lead its UK software sector peers.
Andrew Ripper of Liberum noted, “Cerillion’s recent performance and strategic wins underscore its competitive edge and potential for further market penetration. The recent Tier-1 contract is not just a win but a significant endorsement of Cerillion’s capabilities in a highly competitive market.”
Looking ahead, Cerillion remains well-positioned to meet full-year market expectations, with forecasts holding steady for a total revenue of £44.4 million and EBITDA of £19.3 million. The company’s pipeline remains robust, filled with substantial bids including further Tier-1 operators, reflecting a potential for sustained growth.
Cerillion plc is scheduled to release its full half-year results in May 2024, which will provide deeper insights into its financial health and operational strategies.
