Cerillion plc (LON:CER) Chief Executive Officer Louis Hall caught up with DirectorsTalk to discuss their latest trading update, what’s driven strong growth and how the company is positioned for the rest of the year.
Q1: Now, Cerillion published a trading update for the first six months of the year, how was trading during that period?
A1: We were very pleased with the set of results, this was our strongest ever six months trading period, ahead of our expectations. We had revenues up by 25% compared to the same period last year to £12.8 million and adjusted EBITDA was up 77%, to £4.8 million for the half. So, we’re very pleased with that performance.
Q2: What’s driven the strong growth?
A2: I think there are really three main factors here.
We have a number of ongoing new customer implementation projects, and these are quite long engagements where we deliver the solution to new customers, and that drives a lot of service revenue.
We also have strong demand from existing customers to do extension work for those customers.
The third factor was that we won two major new customer contracts in the period, adding up to a total of about £18.4 million pounds of new order value, which obviously contributed also to that strong performance in the first half.
I think, obviously, we’ll see a lot more of that coming through in H2 and beyond.
Q3: How are Cerillion positioned for the rest of the year?
A3: We’ll announced the full details of all of this on the 10th of May, but £18.4 million of announced deals with just the two new customer announcements, that is obviously going to build a backlog. We’re very positive about the pipeline at the moment for more new customer sales and I think that puts us in a very strong position with respect to the second half but also looking forward into 2022 and beyond.