DirectorsTalk caught up with Harold Evans, Senior Research Analyst, TMT at Singer Capital Markets for his views. Harold noted:
“Cerillion’s FYSept22 update reveals continued strong progress, as revenue is expected to be “marginally head” implying c.24% consensus growth to c.£32.3m, while adj. PBT is “materially ahead” (cons.: £10.1m) and so probably closer to Singers’ £11.7m estimate. This suggests a 22% underlying PBT growth (~34% PBT margin). Net cash of £20m is also ahead and so implies c.£10m FCF i.e. 91% cash conversion.
The outlook for Cerillion also looks good, as while no backlog number is given, it should be up year-on-year materially benefitting from July’s record win.
Cerillion also references a buoyant pipeline – implying it’s yet to witness a macro slow-down. Clearly encouraging and highlights how its customers are investing in non-discretionary and long term projects…and what’s more, should this change, then this could even benefit Cerillion, by accelerating the industry’s transition to (better value for money) packaged software.”
The Board intends to announce full year results in late November 2022 and will contain a further update on current trading.
Telecom solutions provider, Cerillion plc ( LON:CER) has established a reputation within the global telecoms market for being a leading supplier of carrier-grade, enterprise billing and CRM software, supporting fixed wire, mobile, broadband and TV communications service providers.