Cerillion plc record H1 suggests ‘upside’ in FY23E forecasts says Liberum analyst

Cerillion plc
[shareaholic app="share_buttons" id_name="post_below_content"]

Cerillion plc (LON:CER) is the topic of conversation with Ciaran Donnelly Equity Research at Liberum, following the company’s published interim results for the six months ended 31 March 2023. We asked:

Q1. What stood out in the highlights?

Cerillion has delivered record KPIs in H1. Revenue grew 27% and Adj. EBITDA grew 38%. Adj. EBITDA margin has increased to 48.9% (from 44.9%) benefitting from a higher mix of license revenue as well as an FX tailwind in the period. 

Q2. Can you give us more details on the new and back order book?  

Cerillion’s pipeline is at a record £212m, +23% yoy. Back order book increased 8% and total new orders grew 40%. 

Q3. What are your thoughts on the outlook for the company and new customer pipeline?

Management commented that the business remains well positioned to deliver the FY targets. Current consensus is for revenue of £38.1m and adj. EBITDA of £15.9m. The H1 performance suggest there is upside risk to FY23E consensus forecasts. 

Q4. How do you see the company in terms of fair value?

The shares are trading on 30.5x CY23E P/E. Cerillion is trading at a premium relative to the peers. Cerillion is forecast to deliver higher growth relative to peers and at structurally higher margins.

Cerillion plc (LON CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.

Share on:
Find more news, interviews, share price & company profile here for:

Telecom’s trajectory meets its ceiling

Operators face a rare plateau in data growth, and only by redefining their role as digital enablers can they convert abundance into opportunity.

Routers sensing more than connections

A standard home gateway is morphing into a silent sensor that tracks movement and occupancy, offering operators fresh service models and sparking a privacy-first innovation debate.

MVNX looks beyond connectivity to redefine MVNE value

MVNX has extended its MVNE capabilities by integrating Cerillion’s BSS and OSS suite to enhance automation and agility in wholesale telecom operations.

Telecoms betting on plug and play platforms

Traditional telecom systems are giving way to modular, API-driven architectures that promise agility and efficiency for operators navigating the 5G era.

A subtle shift shaping Africa’s MVNO frontier

Discover how virtual operators are reshaping Africa’s telecom landscape with agile billing platforms and strategic partnerships.

Composability sets the stage for AI driven telco renewal

A new wave of composable building blocks and AI-driven automation is transforming how telcos modernise, creating fresh opportunities for agile, standards-based growth.

Search

Search