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

- Link: https://www.directorstalkinterviews.com/cerillion-plc-record-h1-suggests-%e2%80%98upside%e2%80%99-in-fy23e-forecasts-says-liberum-analyst/4121118826
- Published: 2023-05-16T07:21:30+01:00
- Author: Emily Johnson

**[Cerillion plc](https://www.directorstalkinterviews.com/company/cerillion-plc/cer.l)**(
[LON:CER](https://www.directorstalkinterviews.com/company/cerillion-plc/cer.l)) 
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.

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