Cerillion Plc (LON:CER) Chief Executive Officer Louis Hall caught up with DirectorsTalk to discuss interim results, new customer wins and confidence in its full-year growth forecast.
Q1: Louis, just looking at today’s results, can you just talk us through the key features?
A: So, revenue and earnings were a little lower compared to the first half of last year, but this is a timing issue to do with where our customers’ software subscription agreement extensions and renewals land. Last year, the majority of these extensions and renewals occurred in the first half, whereas we anticipate that most of these will land in the second half of this year.
Overall, we’re confident we’re on track to grow by around 12% in line with consensus forecasts over the full year, supported by our backorder growing by 23% year on year, as at the end of April. On the back of an $11 million new customer contract signed in January with one of the national telcos in Armenia, which will make a strong contribution into H2, and an £8 million extension signed with the existing European customer in April that will also contribute into H2.
Consequently, we’ve increased our dividend by 20%.
Q2: Is the recent slowdown in global growth impacting on Cerillion’s markets?
A2: Not really. Telecoms, as we said before, is a market in which sales cycles are usually quite long anyway, they are long-term investment decisions being made about critical infrastructure, which tends to be less impacted. I think to the extent that telcos are looking to cut costs these days, driven by a need to keep investing in more and more new technologies to deliver new services and the fact that customers’ wallets are not infinitely elastic means that there are pressures on telcos to cut costs.
I think that plays to our strengths because what we’re offering is a much more cost-effective, size-fits-all solution that is way more cost-effective than the more tailored solutions that are very service heavy, that are provided by our traditional competitors.
Q3: You mentioned earlier a new customer win in Armenia, could you tell us more about that?
A3: We’re really excited about this one. So, this is a whole new region for Cerillion, Eurasia, I guess, and this is one of the national telcos in Armenia. They provide the full range of fixed, mobile, broadband, TV services, what we call quad-play, and they have aggressive expansion plans.
I think this is a really important customer for us in the future, not just in terms of the value of this customer itself, but also the springboard to provide for further sales in that really interesting region.
Cerillion Plc (LON:CER) CEO Louis Hall outlines a confident growth trajectory despite a softer H1 in the company’s latest interim results. With a significant £8 million contract extension in Europe and a landmark $11 million deal with a national telco in Armenia, Cerillion is doubling down on high-value markets. Hall explains how long-term telecom investment cycles and the demand for cost-effective infrastructure solutions are playing to Cerillion’s strengths, setting the stage for a strong second half.
Cerillion is a UK-based provider of billing, charging, and CRM software solutions for telecom operators worldwide.
Cerillion plc (LON:CER) has announced its interim results for the six months ended 31 March 2025.
Billing, charging and customer relationship management software solutions provider
Group remains on track to deliver financial targets
Results
H1 2025
H1 2024
Change
Revenue
£20.9m
£22.5m
-7%
Recurring revenue in period1
£8.2m
£7.6m
+8%
Back-order book as at 31 March 20252
£50.2m
£47.1m
+7%
Back-order book as at 30 April 20253
£56.5m
£45.8m3
+23%
Adjusted EBITDA4
£10.0m
£11.0m
-9%
Statutory EBITDA
£9.9m
£10.9m
-9%
Adjusted EBITDA margin
47.7%
48.9%
-120 bps
Adjusted profit before tax5
£9.3m
£10.5m
-12%
Statutory profit before tax
£9.3m
£10.4m
-11%
Adjusted basic earnings per share6
23.9p
27.6p
-13%
Statutory basic earnings per share
23.8p
27.3p
-13%
Dividend per share
4.8p
4.0p
+20%
Net cash
£31.2m
£26.6m
+17%
Financial
· Revenue decrease of 7% to £20.9m (H1 2024: £22.5m), largely driven by the weighting of expected licence renewals/extensions shifting to H2 2025, compared to FY 2024 when the majority of renewals/extensions occurred in H1
· Recurring revenue in period1 up 8% to £8.2m (H1 2024: £7.6m), mainly reflecting higher support and maintenance revenue
· Back-order book up 7% to £50.2m2 at 31 March (31 March 2024: £47.1m) and up 23% as at 30 April 2025 to £56.5m3 (30 April 2024: £45.8m)
· Lower first-half profitability mainly reflected lower revenue, but adjusted EBITDA margin remained strong at 47.7% (H1 2024: £48.9%)
· New orders 3% lower at £19.6m (H1 2024: £20.2m)
· New customer pipeline7 up 3% to £261m (H1 2024: £254m)
· Balance sheet remains strong, with net cash up 17% to £31.2m (31 March 2024: £26.6m)
· Interim dividend up 20% to 4.8p (H1 2024: 4.0p)
Operational
· Major new five-year contract, worth $11.4m, signed in January 2025 with a major national telecoms operator in Armenia, covering fixed, mobile, broadband and TV services.
· £5.4m term renewal agreed in March 2025 with a major European customer.
· Another major European customer is to use Cerillion’s software to support the migration of its substantial, newly-acquired, tier-1 customer base. Services framework agreement worth c. £8m, signed post period-end for the implementation, with major licence extension to follow.
· New implementations continued to progress well:
o Virgin Media Ireland: initial delivery phases have been completed and customer migration is on track to commence in July;
o Connectivity solutions provider in Southern Africa: customer migration is on track to complete in July.
· New features launched in Cerillion 25.1:
o New Promotions Engine gives commercial teams the ability to build and deploy highly targeted campaigns faster and more efficiently;
o GenAI supported intelligent assistants automate billing queries and assist with the construction of new promotions.
· The Board believes that the Group is well-positioned to deliver its full year targets, supported by its strong back-order book and new business pipeline.
Louis Hall, CEO of Cerillion plc, commented:
“The business has continued to trade well, winning a major new customer, increasing the back-order book and developing the new customer pipeline. Just after the period-end, we signed the first part of what we expect to be one of our largest deals to date, once the licencing element is concluded. This project is to facilitate the migration of an existing European customer’s newly acquired customer base onto our product and platform. It further validates our offering as the customer chose to move its new customer base to Cerillion’s SaaS-based platform instead of remaining with the incumbent tier-1 provider.
“Based on new orders achieved to date and current trading, we believe Cerillion is well-placed to deliver market expectations for the full year and beyond. We continue to view long-term prospects with confidence.”
1 Recurring revenue includes support and maintenance, managed service, Skyline and third-party hardware and hosting revenue reported in the period.
2 Back-order book of £50.2m consists of £40.6m of orders contracted but not yet recognised plus £9.6m of annualised support and maintenance revenue. It is anticipated that c. 45% of the £40.6m of orders contracted but not yet recognised as at the end of the reporting period will be recognised within 12 months from 31 March 2025.
3 As at 30 April 2025, back-order book had increased to £56.5m, consisting of £46.9m of sales contracted but not yet recognised plus £9.6m of annualised support and maintenance revenue. It is anticipated that c. 45% of the £46.9m of orders contracted but not yet recognised as at the end of the reporting period will be recognised within 12 months from 30 April 2025. Includes a back-order comparative as at 30 April 2024.
4 Adjusted EBITDA is a non-GAAP, Company-specific measure, which is earnings excluding finance income, finance costs, taxes, depreciation, amortisation and share-based payment charges.
5 Adjusted profit before tax is a non-GAAP, Company-specific measure, which is earnings excluding taxes and share-based payment charges.
6 Adjusted earnings per share is a non-GAAP, Company-specific measure, which is earnings after taxes, excluding share-based payment charges divided by the average weighted number of shares in the period.
7 New customer sales pipeline is the total, unweighted value of all qualified sales prospects.
CHAIRMAN AND CHIEF EXECUTIVE OFFICER’S REPORT
Overview
First-half revenue of £20.9m was 7% lower than the same period last year and principally reflects the anticipated shift in weighting of customer extensions and renewals to the second half. In the last financial year, by contrast, the majority of renewals and extensions occurred in the first half. Based on the new contracts achieved to date and expected contract signings, the Company remains on track to meet consensus market forecasts for the current financial year and beyond.
Recurring revenue2 continued to grow, up by 8% over the first half to £8.2m (H1 2024: £7.6m). Adjusted profit before tax3 was 12% lower at £9.3m (H1 2024: £10.5m), which mainly reflected the decrease in total revenue. Nonetheless, the adjusted EBITDA margin remained robust at 47.7% (H1 2024: 48.9%) and the Company continued to generate strong cash flows, with improved cash conversion. Net cash at 31 March 2025, after payment of dividends, was up by 17% to £31.2m (31 March 2024: £26.6m).
Total new orders were 3% lower than the prior period at £19.6m (31 March 2024: £20.2m), however, the new customer sales pipeline stands at a very healthy £261m, a 3% increase (31 March 2024: £254m). The back-order book6 closed higher, up 7% to £50.2m at 31 March (H1 2024: £47.1m). Following the recent signing of a c. £8m implementation services agreement with an existing, major European customer, the back-order book at 30 April 20257 increased by 23% to £56.5m (30 April 2024: £45.8m). We expect to sign a substantial licence extension with this same customer. Once signed, the combined deal value of these agreements is expected to count amongst our largest new deal values.
We continued to develop our resources across our main operating bases in the UK, Bulgaria and India, and expanded our regional sales presence to support our on-going expansion strategy.
Despite recently unsettled global trading conditions, our trading backdrop remains favourable and we continue to see strong market demand for our product-focussed, SaaS solutions. Investment in enterprise software delivers significant revenue, operational and efficiency benefits to telcos, enabling them to leverage better returns on existing network infrastructure investments. Our ‘out-of-the-box’ product provides distinct advantages as it is a more cost effective and flexible solution compared to traditional bespoke solutions. This helps to underpin our confidence in the Company’s future growth prospects.
Looking ahead over the balance of the current financial year, we expect a stronger performance in H2 than in H1 and remain confident of delivering consensus market expectations for the financial year and beyond. Our view is based on continuing successful execution, the robust back-order book, closure of anticipated term renewals and extensions as well as our strong new business pipeline.
Financial Overview
Revenue for the six months ended 31 March 2025 decreased by 7% to £20.9m (H1 2024: £22.5m). This mainly reflects the reduction in licence revenue recognised against a strong comparator in 2024, when the majority of renewals/extensions occurred in the first half. This financial year, we anticipate a heavier weighting of licence renewals/extensions in the second half.
The mix of revenue shifted significantly towards Services revenue, which rose by 24% period-on-period to £10.3m, or 49% of total revenue (H1 2024: £8.3m and 37% of total revenue). Software1 revenue at £9.6m accounted for 46% of total revenue (H1 2024: £13.2m and 59% of total revenue). Other1 revenue amounted to £1.0m or 5% of total revenue (H1 2024: £1.0m and 4% of total revenue) and included the re-selling of third-party hardware, hosting fees and rebillable expenses.
Despite lower Software revenue, the gross margin was slightly higher than in the prior period at 80.6% (H1 2024: 80.4%). This mainly reflected improved operational efficiencies, which led to an increase in day rates achieved on key implementation projects.
Existing customers (those customers acquired at least 12 months before the end of the reporting period) accounted for a very high proportion of the Group’s revenue and generated 98% of total revenue in the period (H1 2024: 89%).
Recurring revenue in the period2 grew by 8% to £8.2m (H1 2024: £7.6m) and comprised 39% of the Group’s revenue (H1 2024: 34%). The rise reflected increased uptake of support and maintenance by existing customers as well as fee increments.
Operating expenses of £8.1m remained broadly consistent period-on-period (H1 2024: £8.1m). Increases from higher headcount, depreciation, amortisation and inflation were offset by favourable foreign exchange, favourable headcount mix and higher capitalisation of development costs.
Adjusted earnings before interest, tax, depreciation and amortisation (“EBITDA”), which excludes share based payment charges, decreased by 9% to £10.0m (H1 2024: £11.0m). Statutory EBITDA decreased by 9% to £9.9m (H1 2024: £10.9m).
Adjusted profit before tax3 decreased by 12% to £9.3m (H1 2024: £10.5m) and adjusted earnings per share4 was 13% lower at 23.9p (H1 2024: 27.6p). Statutory profit before tax decreased by 11% to £9.3m (H1 2024: £10.4m), and statutory earnings per share decreased by 13% to 23.8p (H1 2024: 27.3p).
The balance sheet remains strong. Net assets rose by 21% to £51.6m as at 31 March 2025 (31 March 2024: £42.5m).
Cash Flow and Banking
Net cash at 31 March 2025 increased by 17% to £31.2m (31 March 2024: £26.6m), with no debt in either period. Net cash generated from operations in the period increased to £7.0m (H1 2024: £5.3m).
Development costs of £0.9m were capitalised in the period (H1 2024: £0.6m) after investment to further enhance the Company’s intellectual property.
Free cash generation in the period was £5.9m (H1 2024: £4.7m) principally reflecting lower investment in working capital due to the lower software revenue recognised, partly offset by lower profit and higher capex. Cash generated in the period was partly utilised to pay the final dividend of £2.7m (H1 2024: £2.4m) in respect of the year ended 30 September 2024.
Dividend
The Board is pleased to declare an increased interim dividend of 4.8p per share (H1 2024: 4.0p), a 20% rise year-on-year. The interim dividend will become payable on 20 June 2025 to shareholders on the Company’s register as at the close of business on the record date of 30 May 2025. The ex-dividend date is 29 May 2025.
As previously stated, the Board aims to distribute between a third to a half of the Group’s free cash flow as dividends each year, subject to the Group’s performance and the Board’s assessment of the trading environment.
Operational Overview
We signed a major new customer contract worth $11.4m over five years in January 2025 with a major national telecoms operator in Armenia. We are installing our BSS/OSS5 software to support over one million B2B and B2C customers across fixed, mobile, broadband and TV services. The revenue benefits from this new win are expected to come through meaningfully in the second half of the current financial year, and we see scope for this new relationship to expand further over time. We also agreed a £5.4m term renewal in March 2025 with an existing European customer, and after the period-end, closed a c. £8m implementation services contract with another key European customer. This major contract extension provides the services framework for the migration of a recently acquired, tier-1 customer base onto our BSS/OSS platform. We expect to sign a second, substantial contract in due course, which will cover term licensing, maintenance, managed services and Evergreen software updates for this new customer base. The selection process was rigorous, involving external consultants and all key business stakeholders. Our solution replaces that of one of the largest operators in the BSS/OSS space, which we see as providing further important validation of our product and ‘as a service’ strategy.
We continued to invest in R&D, releasing new features and functionality improvements twice a year. Our Evergreen programme enables customers to remain up to date with the latest enhancements, with updates implemented on a regular basis as soon as new product releases become available. Its take-up is increasing as more customers embrace the full Software-as-a-Service model. AI is a particular focus in our R&D programme, and the release of Cerillion 25.1 in the first half introduced a set of new AI-powered intelligent assistants that streamline both our customers’ and their end-customers’ experience:
· Bill Intelligence – uses GenAI to automatically compare an end-customer’s latest bill with their previous one, delivering clear, natural-language explanations for any differences through all engagement channels. This enables a more proactive approach to addressing bill variations.
· Sales Assistant – uses GenAI to enhance the buying experience of a teleco’s end-customer. The end-customer can describe in natural language what they need and the system intelligently selects the best-match products, automatically populating the shopping cart and generating a quote for acceptance.
· Promotions Assistant – uses GenAI-powered natural language and image recognition to help telecos to build new promotions in seconds.
These new tools are designed to reduce complexity for telecoms providers and their internal teams. Cerillion 25.1 includes a powerful, new Promotions Engine, which is designed to help telcos to increase revenue through dynamic promotional campaigns, based on a wide range of customer behaviours and triggers, such as frequent top-ups, consistent monthly spending and usage patterns, following an “if this, then that” pattern. Traditional campaign systems often lack the real-time integration to deliver dynamic and timely offers. Cerillion’s new Promotions Engine addresses this.
Outlook
Prospects remain very promising and the business is well-placed for continuing progress. The market opportunity remains significant and the commercial and operational advantages to our ‘productised’ and ‘as-a-service’ approach are compelling. The business remains highly differentiated against the other providers in the marketplace.
The Company’s balance sheet is very strong, with no debt and significant net cash. This provides a strong platform to support Cerillion’s continued growth and development.
Results for the year are expected to be second-half weighted and we believe that the Company remains well-positioned to deliver market forecasts for the full year and beyond. This is based on new orders signed to date and the strong new business pipeline, which includes further licence extensions. We continue to view long-term prospect very positively.
Alan Howarth Chairman
Louis Hall Chief Executive Officer
Notes:
1 Software revenue is made up of licence, support and maintenance, managed service and Skyline revenue. In the prior period, third-party licence revenue was reported within Other revenue. In order to give a clearer view on the Group’s performance, and to be consistent with the definition used for FY24 reporting, third-party licence revenue is now reported within Software revenue. The prior year comparatives have been updated to reflect this change.
2 Recurring revenue includes support and maintenance, managed service, Skyline and third-party hardware and hosting revenue reported in the period.
3 Adjusted profit before tax is a non-GAAP, Company-specific measure which is earnings excluding taxes and share-based payment charges.
4 Adjusted earnings per share is a non-GAAP, Company-specific measure which is earnings after taxes, excluding share-based payment charges divided by the average weighted number of shares in the period.
5 BSS/OSS; in telecommunications, this refers respectively to business support systems and operating support systems.
6 Back-order book of £50.2m consists of £40.6m of orders contracted but not yet recognised plus £9.6m of annualised support and maintenance revenue. It is anticipated that c. 45% of the £40.6m of orders contracted but not yet recognised as at the end of the reporting period will be recognised within 12 months from 31 March 2025.
7 As at 30 April 2025, back-order book had increased to £56.5m consisting of £46.9m of sales contracted but not yet recognised plus £9.6m of annualised support and maintenance revenue. It is anticipated that c. 45% of the £46.9m of orders contracted but not yet recognised as at the end of the reporting period will be recognised within 12 months from 30 April 2025.
8 New customer sales pipeline is the total, unweighted value of all qualified sales prospects.
Cerillion’s latest Product Forum has once again demonstrated why this telecoms leader continues to command the attention of investors and industry experts worldwide. Packed with breakthrough features and customer-driven innovation, the event laid out a clear vision of how Cerillion is transforming service providers’ digital capabilities, driving faster growth and operational excellence.
Broadcast live to a global audience, the May 2025 Product Forum highlighted major upgrades in Cerillion’s flagship BSS/OSS suite. The spotlight fell on the new Promotions Engine, a game-changing tool that empowers both IT and marketing teams to collaborate in real-time. This allows service providers to rapidly define, validate, and launch new promotions directly into the product catalogue. The result is reduced time-to-market for new offers, giving operators a competitive edge in an increasingly crowded landscape where speed of execution is critical.
Cerillion also unveiled its latest advancements in artificial intelligence, integrating AI-powered Intelligent Assistants directly into the BSS/OSS platform. These tools are designed to enhance both customer service and operational performance. Bill Intelligence provides clear, human-like explanations for billing changes, giving customers immediate clarity and reducing the burden on call centres. Meanwhile, the new Sales Assistant uses generative AI to recommend the best-fit products based on customer requests, automatically creating quotes that are ready for immediate acceptance. This not only shortens the sales cycle but also helps sales teams deliver a more personalised experience.
Further upgrades to Cerillion’s Self Service and Mobile App platforms were revealed, supporting the growing industry demand for composable, digital-first customer experiences. These enhancements give end-users more flexibility and control, helping service providers strengthen customer loyalty while reducing support costs. Cerillion’s investment in these platforms reflects its understanding of how user expectations have evolved in the digital economy, where convenience and self-management are now standard.
Throughout the forum, Cerillion’s Product Director reinforced the company’s commitment to customer-led innovation. By listening to customer feedback and incorporating it into their product roadmap, Cerillion continues to prove that it is not only delivering technology leadership but also driving measurable business outcomes for its clients. This strategic alignment ensures that Cerillion’s solutions stay relevant and value-driven, helping telecoms providers accelerate their digital transformation journeys.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
Cerillion plc (LON:CER), the billing, charging and customer relationship management software solutions provider, will announce its interim results for the six months ended 31 March 2025 on Monday, 19 May 2025.
Louis Hall, CEO, and Andrew Dickson, CFO, will also host an online presentation of the Company’s results on Wednesday, 28 May at 12.30 p.m. At this event, they will discuss the Company’s first-half performance and growth prospects, following which they will take questions in a Q&A session.
Shareholders and potential investors can register to join the online presentation at https://bit.ly/CER_H125_results_webinar. Further information can be obtained from KTZ Communications.
The telecoms landscape is undergoing a seismic shift as satellites transition from niche applications to central components of global connectivity. This evolution is not just technological but also strategic, presenting investors with unprecedented opportunities in a rapidly expanding market.
The telecommunications sector is experiencing a transformative era, with satellites emerging as pivotal players in global connectivity. Once relegated to specialised uses, satellite technology is now at the forefront of delivering broadband services, especially in areas where traditional infrastructure is lacking. This shift is driven by the increasing demand for ubiquitous, high-speed internet access and the limitations of terrestrial networks in reaching remote regions.
Companies like SpaceX, with its Starlink project, and OneWeb are leading the charge, deploying low Earth orbit (LEO) satellite constellations to provide global coverage. These initiatives are not only enhancing internet accessibility but also introducing competitive pressures on traditional telecom operators, prompting a reevaluation of service delivery models.
The integration of satellite technology into mainstream telecom services is further evidenced by partnerships between satellite firms and mobile network operators. These collaborations aim to offer seamless connectivity, combining the broad reach of satellites with the established infrastructure of terrestrial networks. Such synergies are particularly beneficial in disaster-stricken areas or regions with challenging terrains, where rapid deployment of communication services is critical.
From an investment perspective, the satellite telecom sector presents a compelling case. The global satellite communication market is projected to grow significantly, driven by advancements in technology, decreasing launch costs, and the proliferation of IoT devices requiring constant connectivity. Investors are keenly observing companies that are not only innovating in satellite technology but also forging strategic partnerships to expand their market reach.
However, the sector is not without challenges. Regulatory hurdles, spectrum allocation issues, and the need for substantial capital investment pose risks that must be carefully managed. Moreover, the sustainability of satellite constellations, including concerns about space debris and orbital congestion, requires ongoing attention and innovation.
In conclusion, the convergence of satellite and terrestrial telecom services is redefining the industry’s landscape. For investors, this evolution offers opportunities to participate in a sector poised for significant growth, driven by technological innovation and the global demand for connectivity. Companies that successfully navigate the complexities of this integration are likely to emerge as leaders in the next generation of telecommunications.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
Cerillion has unveiled Cerillion 25.1, the newest iteration of its pre-integrated BSS/OSS suite, marking a significant leap in telecom software capabilities. At the forefront is the next-generation Promotions Engine, designed to provide Communications Services Providers (CSPs) with unparalleled agility in crafting, managing, and scaling personalised offers. This engine, seamlessly integrated with Cerillion’s Convergent Charging System, enables commercial teams to launch highly targeted campaigns rapidly, leveraging customer behaviours and triggers such as frequent top-ups and consistent monthly spending patterns.
Traditional campaign systems often fall short in delivering timely and dynamic offers due to a lack of real-time integration. Cerillion addresses this gap by allowing CSPs to implement “if this then that” promotional strategies without coding delays, thus enhancing revenue through dynamic promotional campaigns.
Further enhancing the suite, Cerillion 25.1 introduces AI-powered intelligent assistants that streamline both customer and user experiences:
Bill Intelligence: Utilises GenAI to automatically compare a customer’s latest bill with previous ones, providing clear, natural-language explanations for any differences across all engagement channels, thereby proactively addressing bill shock.
Sales Assistant: Enhances the purchasing experience by allowing customers to describe their needs in natural language. The system intelligently selects the best-matched products, automatically populates the shopping cart, and generates a quote for acceptance. (
Promotions Assistant: Employs GenAI-powered natural language and image recognition to assist users in building new promotions swiftly.
These tools are crafted to reduce complexity for both customers and internal teams, transforming CSP operations into more intuitive and efficient experiences.
Louis Hall, CEO of Cerillion, emphasised the importance of a sophisticated promotions engine in today’s market, stating that without it, CSPs risk missing valuable opportunities to incentivise customer loyalty and maximise revenue potential. He highlighted that Cerillion 25.1 reimagines how telcos can design, build, and launch new promotions, with AI integration making the process faster, easier, and more precise than ever before.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
The shift from legacy systems to agile, open digital infrastructures is picking up speed, and Cerillion is right at the forefront. In a significant industry move, the company will share the stage with key voices in telecom to examine how communications service providers are streamlining operations and slashing costs through ODA-aligned strategies.
Cerillion is taking centre stage as a panellist in the upcoming TM Forum webinar, “Assessing CSPs’ Progress Towards an Open Digital Architecture”, hosted by Mark Newman, Chief Analyst at TM Forum. The event will spotlight the evolving landscape of business support systems (BSS) and operations support systems (OSS), with Cerillion’s Product Director, Brian Coombs, bringing key insights into the real-world impact of open, composable architectures.
This webinar marks a pivotal moment for the telecoms sector as communications service providers (CSPs) continue to push for transformation programmes that reduce dependence on bespoke software and expensive systems integration. The industry’s pursuit of flexibility and efficiency has led to the rise of the Open Digital Architecture (ODA), a framework championed for its potential to cut through technical debt and enable rapid innovation.
Through this panel discussion, Cerillion will delve into recent survey data gathered from both CSPs and their technology partners. The findings paint a detailed picture of how far the industry has come in embracing ODA, the tangible benefits already being experienced, and the pain points that still linger. Brian Coombs will provide a product-centric perspective on how ODA is shaping vendors’ roadmaps and aligning product development with CSPs’ evolving operational goals.
Among the webinar’s focal points is the influence of ODA on integration costs—a core challenge for most CSPs. Legacy systems often require high levels of customisation, leading to long deployment times and spiralling costs. By contrast, an ODA-aligned approach is enabling modularity and reusability, allowing CSPs to build more agile and future-proof operations. Cerillion’s contribution will shine a light on how these benefits are not just theoretical, but being actively realised by early adopters.
Another critical area of exploration is the specific functions CSPs are targeting first in their ODA journeys. With limited resources, prioritisation is key, and the webinar will highlight the common threads in how CSPs are phasing their transformation strategies. Operational hurdles, such as internal resistance and legacy skillsets, are also on the agenda—realities that vendors like Cerillion are helping their customers overcome through intuitive design and built-in conformance to ODA principles.
Importantly, the discussion will challenge the perception that ODA is a Tier 1-only play. Cerillion brings to the table a track record of enabling CSPs of all sizes to embrace architectural change without excessive complexity. The webinar aims to demonstrate that the benefits of ODA can be democratised across the sector, empowering regional and niche operators to compete on a more level technological playing field.
As the industry pivots towards more interoperable, lower-maintenance platforms, Cerillion is positioning itself not just as a participant, but as a thought leader and enabler. Its active involvement in this TM Forum initiative underscores a broader commitment to driving digital transformation that’s both inclusive and impactful.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
Cerillion plc (LON:CER), a leading provider of billing, charging, and customer management systems, remains firmly on an upward trajectory, even as short-term revenue phasing impacts the first half of its 2025 financial year. In their latest research note, Panmure Liberum maintains a confident outlook on the company, highlighting its strong fundamentals and future opportunities.
The note, authored by research analyst Andrew Ripper, underscores Cerillion’s resilience and strategic progress. “The good news in April’s trading update is the intention of an existing European customer to use Cerillion’s software to support a recently acquired tier 1 customer base, which should be a meaningful contributor from 2H25,” Ripper states.
While the trading update showed a slight dip in first-half figures—with expected revenues of £20.9m and EBITDA of £10m compared to £22.5m and £11m respectively in 1H24—this is primarily due to the timing of licence renewals and extensions, now weighted towards the second half. The analysts expect EBITDA in 2H25 to climb to £11.7m.
A highlight of the update is the announcement of a potential major expansion through a European customer, speculated to be Denmark’s Norlys, which recently acquired a significant mobile customer base. This could result in a notable uptick in revenue and margin from the second half of the year onwards.
Additionally, Cerillion has secured a US$11.4m five-year contract in the Caucasus region, with revenue recognition likely in 2H25. Combined with £5.4m in renewals from another European client, the outlook remains bullish.
Despite a 26% drop in share price year-to-date, largely attributed to macroeconomic factors affecting the AIM market, Panmure Liberum sees this as a buying opportunity for quality-focused investors. “Cerillion continues to offer a best-in-class combination of organic growth and margin, has a track record of winning v market leader Amdocs and smaller ISVs and is gaining credibility as it delivers software to larger clients over time,” Ripper explains.
Valued at 15.6x EV/EBITDA for CY25E and trading at a discount to peers such as Sage, Cerillion is positioned as an attractive investment. Panmure Liberum has set a target price of 2000p, suggesting substantial upside from the current level of 1300p.
In Summary
With robust financials, strategic contract wins, and strong customer relationships, Cerillion remains a standout in the UK software space. Investors looking for quality growth stories should take note of Panmure Liberum’s renewed optimism and long-term view.
As Asia’s communications service providers (CSPs) pivot from basic connectivity to digital ecosystems, the emergence of convergent charging is quietly becoming the lynchpin for growth. Telcos are no longer just moving data—they’re monetising experiences, services, and entire digital marketplaces through intelligent, adaptable charging models. And this evolution is turning traditional revenue streams on their head.
Across Asia, the telecoms landscape is undergoing a profound transformation. No longer tethered to legacy revenue models based on voice and SMS, CSPs are embracing digital services, content platforms, and complex enterprise solutions to drive growth. At the heart of this shift is the rise of convergent charging systems (CCS), which unify payment and service handling into a single, agile engine capable of supporting 5G Standalone (SA), mobile broadband, IoT, and much more.
Gone are the days of siloed prepaid and postpaid systems. Today’s CCS platforms handle diverse services and customer segments with real-time precision, ensuring both subscribers and operators maintain full visibility and control. This capability is essential for premium digital experiences like immersive gaming and remote surgery, where service performance and charging transparency must be seamless.
The new benchmark is no longer connectivity alone—it’s end-to-end value delivery. Telcos are moving towards offering fully integrated packages, such as complete AWS enterprise solutions that combine connectivity with cloud infrastructure, support, and professional services. This represents a leap forward from simply linking data centres. The result is not just higher-value services, but an entirely new playbook for monetisation.
With Asia leading the way in digital adoption, CSPs are uniquely positioned to capitalise on this evolution. Markets in the region are defined by high smartphone penetration, surging demand for bundled services, and intense competition from both traditional operators and digital-native disruptors. In this environment, convergent charging is a strategic asset, enabling rapid service launches, flexible pricing, and frictionless user experiences.
CSPs must navigate diverse customer expectations, support multiple payment methods, and deliver tailored bundles that blend mobile, broadband, content, and beyond. Convergent charging simplifies this complexity, enabling operators to innovate faster while reducing operational overhead and minimising revenue leakage.
The arrival of 5G SA networks brings both opportunity and technical complexity. While rollout remains uneven across the region, CSPs need business support systems ready for the intricacies of network slicing and quality-of-service (QoS) charging. Frontier markets, in particular, are demanding flexible models that can scale with digital transformation, balancing traditional telecom needs with modern digital services.
Looking ahead, convergent charging will become even more dynamic. Charging models are evolving to encompass edge compute and storage usage for enterprise clients, charging for IoT platform services powering smart cities, and granular media consumption billing based on time or usage. Even marketplaces are being monetised more precisely, through API-based charging or listing fees tied to duration and visibility.
These capabilities require robust, real-time systems with the flexibility to support a wide array of pricing models: usage-based, subscription, dynamic, and everything in between. Seamless integration with legacy systems, CRM platforms, and third-party providers remains a technical challenge, but also a crucial success factor for CSPs looking to build differentiated service portfolios.
The telecoms industry is at a crossroads where convergent charging is no longer a back-office function—it’s a strategic growth driver. Telcos that implement agile, forward-looking CCS platforms will not only unlock new revenue streams, they’ll also gain the flexibility to adapt to tomorrow’s digital demands. By turning network infrastructure into a monetisable service layer, CSPs can capture a greater share of the digital value chain, build stronger customer relationships, and secure long-term relevance.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
Cerillion plc (LON:CER) is poised for a strong second half, according to the latest research by Singer Capital Markets. Despite a year-on-year revenue decline in the first half of FY25, the telecoms software provider is expected to rebound significantly, underpinned by solid existing customer relationships and a robust expansion pipeline.
Singer Capital Markets highlights that Cerillion expects to report £20.9m in H1 revenue, compared to £22.5m the previous year. However, margins remain resilient with EBITDA of £10m at an impressive 48%. According to analyst Harold Evans, this outcome was made possible by “improved Services day-rates, which compensated for lower licence sales,” with renewals and expansions expected to be concentrated in H2.
A standout growth opportunity includes a significant expansion with a major European customer—believed to be Norlys following its acquisition of Telia Danmark. This deal could see Cerillion’s BSS/OSS platform manage nearly 1.9 million additional mobile customers, a boost that underscores the company’s strong positioning in the market.
“Consider that CER is well placed to meet (or even exceed) FY25 consensus EBITDA (£22.0m) even in the absence of a further new win,” Evans stated, pointing to the strength of Cerillion’s recurring revenue from existing clients. He notes that more than 85% of the company’s income typically comes from current customers, making its financial outlook notably stable.
The research further explains that fluctuations between half-year periods are not unusual for Cerillion, given the timing of revenue recognition on large contracts. Evans advises not to “over-obsess” over the H1 numbers, stressing that “growth has not been linear” and pointing to visible prospects for H2, including the $11.4m Ucom contract and two other major wins from FY24 expected to go live soon.
With shares currently trading at 1300p, Singer Capital Markets maintains a 12-month target price of 1900p—a potential upside of 46.2%. The stock is also trading at its lowest P/E multiple for five years, signalling what the broker sees as a strong buying opportunity.
On a Final Note, Cerillion’s continued focus on existing customer expansions, alongside a “very strong” new business pipeline, puts it in a solid position to deliver sustainable growth. Investors may find the current valuation compelling, particularly given the resilience shown in challenging half-year conditions.
Cerillion plc (LON:CER), the billing, charging and customer relationship management software solutions provider, has announced an update on trading for the first six months of its current financial year ending 30 September 2025.
Revenue is expected to be c. £20.9m (H1 2024: £22.5m), with the difference reflecting the anticipated higher weighting of software licence renewals/extensions to the second half of FY 2025, compared to FY 2024 when the majority of renewals/extensions occurred in the first half. Adjusted EBITDA is expected to be c.£10.0m (H1 2024: £11.0m). Net cash at 31 March 2025 has increased to approximately £31.0m (31 March 2024: £26.6m), further strengthening the Company’s balance sheet. Cerillion’s new customer pipeline remains very strong and a little ahead of last year’s record level.
The Company remains very well-placed to meet market expectations for the current financial year and beyond. This is supported by a number of factors, including January’s major new contract win worth $11.4m, a term renewal worth £5.4m agreed in March with a major European customer, as well as another significant European customer recently confirming its intention to use Cerillion’s BSS/OSS software as the platform to support a substantial, tier-1 customer base it recently acquired in its home market. This major migration programme is expected to benefit revenues in both the current and next financial year.
Cerillion’s Board expects to announce interim results around mid-May when it will also provide a further update on current trading.
Investor sentiment is shifting as concerns grow around the valuations of large US technology firms. In response, many are turning their attention to overlooked opportunities in the UK tech sector. A combination of more attractive valuations, sector-specific innovation, and growth potential is drawing investors to UK-listed technology stocks.
Among those gaining attention are Cerillion plc, itim Group plc, Tern plc, and CyanConnode Holdings Ltd, each positioned in different areas of the technology market but benefiting from renewed interest in UK-based innovation.
Cerillion provides billing, charging, and customer relationship management software, primarily for the telecommunications sector. The company reported strong financial results for the fiscal year ending 30 September 2024, with revenue up 12% to £43.8 million and adjusted pre-tax profit rising 18% to £19.8 million.
Despite this performance, its share price recently declined 13% over a three-month period, leading some to see it as undervalued and a potential opportunity for value-focused investors.
itim Group develops SaaS solutions to help store-based retailers compete more effectively with online competitors. Its technology, underpinned by artificial intelligence, focuses on price optimisation, stock control, and supplier collaboration.
With physical retailers continuing to digitise their operations, itim Group’s offering is well positioned to support that transition and attract institutional interest.
Tern is a technology investment company with a particular focus on the Internet of Things (IoT). Rather than offering a single product or service, Tern gives investors exposure to a portfolio of innovative private IoT firms.
Its strategy is to identify early-stage companies with scalable business models and to support them as they expand, providing potential upside across multiple holdings.
CyanConnode is a specialist in narrowband RF mesh networking, used predominantly in smart metering and IoT systems. The company is active in several large-scale deployments, particularly in India.
A recent £5 million unsecured loan facility from an existing investor has strengthened its balance sheet and will support ongoing rollout and project delivery. This backing signals confidence in the company’s direction and prospects.
The renewed focus on UK technology stocks comes as part of a broader trend of rebalancing away from high-growth, high-valuation US tech names. UK companies like Cerillion, itim Group, Tern, and CyanConnode offer differentiated technology and, in some cases, more grounded valuations.
For investors seeking alternatives with strong growth narratives, the UK tech sector may present an underappreciated opportunity.
Cerillion plc (LON:CER) Chief Executive Officer Louis Hall caught up with DirectorsTalk for an exclusive interview to discuss the $11.4 million contract with a major telecoms operator.
Q1: Louis, the $11.4 million contract with the national telecoms operator is significant for Cerillion. Could you explain what makes this contract particularly meaningful for the company and how it aligns with your long-term strategy?
A1: This is a fully fledged digital transformation project for a national telecoms operator across the full range of fixed, mobile, broadband services. In terms of our strategy to grow into other regions, it’s important because this is our first contract in this part of the world, in the Caucasus, and stretching across obviously further east into Azerbaijan and Kazakhstan and so on. We see that this will open doors for other opportunities in that region, which is a very important part of the Eurasian economy these days.
Q2: You mentioned that the group’s software-as-a-service-based productised approach was a major differentiator in securing this deal. Can you just elaborate on how this model benefits telecom operators and why it stands out in a market that’s dominated by bespoke solutions?
A2: I think that there was a clear decision on the part of this customer that they did not want to go for the very expensive, high-risk, time-consuming project that is involved in implementing a more bespoke solution. They wanted something off the shelf, ready to go on day one.
To reiterate what I’ve said many times, this is much faster in terms of time to market, it’s much cheaper in terms of long-term cost of ownership and it’s much more flexible in terms of being able to introduce new products and services to market quickly and to respond to the competition.
Ucom’s objective is to become the leading telco in Armenia and to provide most advanced customer experience so that’s absolutely fundamental in terms of the solution that we’re providing.
Q3: With implementation starting immediately and revenue benefits expected in the second half of the financial year, how do you anticipate this contract will contribute to Cerillion’s financial performance and market guidance in the near term?
A3: Well, as we said, it won’t contribute an awful lot to our first half, our first half ending the end of March, but we expect a significant contribution in the second hand therefore in the full year. It certainly will help support existing consensus forecasts significantly.
Cerillion Plc (LON:CER), the UK-based software company, continues to demonstrate why it stands out in the competitive world of Business and Operations Support Systems (BSS/OSS). With a track record of winning against industry giants like Amdocs, an expanding pipeline, and best-in-class margins, Cerillion is proving itself as a key player in the technology sector.
Strong Market Position and Expansion
Cerillion operates in a vast and fragmented market, estimated to grow at a compound annual growth rate (CAGR) of 2%–5% until 2027. The company’s ability to win contracts against larger competitors highlights its growing reputation and credibility. Notably, Cerillion recently secured a US$11.4m five-year contract with a telecom operator in the Caucasus region, further reinforcing its global expansion.
Andrew Ripper, Research Analyst at Panmure Liberum, emphasises, “Cerillion has a track record of winning work v market leader Amdocs and smaller ISVs, is gaining credibility as it delivers software to larger clients over time and has announced another new US$11.4m contract today.”
With its commercial-off-the-shelf (COTS) software solutions, Cerillion provides quick-to-deploy, cost-effective alternatives to the more complex, customised systems offered by bigger industry players. This efficiency has made it an attractive choice for telecom operators worldwide.
Financial Strength and Growth Potential
Despite a recent 17% decline in its share price, Cerillion remains a compelling investment opportunity. Panmure Liberum reiterates its Buy recommendation with a target price of 2000p, citing strong fundamentals and growth potential.
Key financial highlights include:
Record Sales Pipeline: £262m as of September 2024, with a 21% CAGR since 2019.
Strong Margins: EBITDA margin reached 47.4% in FY24, well above industry peers.
Consistent Growth: 18% five-year revenue CAGR, with an 11% forecasted CAGR until FY27.
Robust Balance Sheet: Net cash expected to grow to £37m in FY25E.
Andrew Ripper notes, “Cerillion stands out as the only listed UK software company to have a combined prospective organic sales growth rate and margin that exceeds 50%.”
Long-Term Outlook and Potential M&A Target
Cerillion’s efficient operations, high customer retention, and strong financials make it a potential target for acquisition in the BSS/OSS sector. With a growing list of Tier 1 clients and a strategic presence in India, where 60% of its workforce is based, the company is well-positioned for sustained growth.
Panmure Liberum’s valuation suggests that Cerillion should trade at a premium compared to UK software peers due to its superior growth potential and profitability.
On a Final Note
Cerillion plc is a prime example of a UK technology company that has successfully built a strong, scalable business with high margins and consistent revenue growth. Its ability to compete with larger rivals, secure Tier 1 clients, and maintain best-in-class financial metrics sets it apart from many of its peers.
For growth-focused investors, Cerillion presents an intriguing opportunity—especially given the recent share price decline, which offers an attractive entry point.
With a robust sales pipeline, a strong balance sheet, and the potential for further market share gains, Cerillion is well-positioned to continue delivering value to shareholders in the years to come.
Panmure Liberum’s Buy recommendation and 2000p target price reaffirm the view that Cerillion is a UK tech stock worth watching.
Cerillion plc (LON:CER), the billing, charging and customer relationship management software solutions provider, has announced that it has signed a major new contract, worth $11.4m, with a national telecoms operator.
In this discussion with Cerillion Plc CEO Louis Hall, we discuss how the company’s latest $11.4 million contract is set to transform a national telecoms operator’s digital services. Hall reveals why this milestone contract is pivotal for Cerillion’s expansion into the Eurasian market and how their off-the-shelf software solutions are reshaping the telecom landscape. From rapid deployment benefits to long-term growth projections, the interview highlights how this deal aligns with Cerillion’s strategic ambitions and financial outlook.
Cerillion Plc provides billing, charging, and customer relationship management software solutions, enabling telecom operators to deliver advanced customer experiences with speed and efficiency.
Cerillion plc (LON:CER), the billing, charging and customer relationship management software solutions provider, has announced that it has signed a major new contract, worth $11.4m, with a national telecoms operator in the Caucasus region. The initial term of the agreement is five years, and it has scope to expand further over time. The new contract supports existing consensus market guidance.
Cerillion will be providing its BSS/OSS software to support over one million B2B and B2C customers across fixed, mobile, broadband and TV services. Implementation work is commencing immediately, and the revenue benefits will start to come through meaningfully in the second half of the current financial year.
The Company’s model of providing an out-of-the-box, but highly configurable solution, which can support the whole range of a telecom provider’s offering on a single SaaS-based platform was a major differentiator in the selection process. In addition, Cerillion’s solution is upgraded regularly, with new features, and with industry standard APIs across the suite. This is operationally and financially highly attractive and contrasts with the prevailing bespoke approach, which is dominant across the market. A bespoke approach is traditionally associated with multiple years of implementation, higher risk and substantially higher costs.
Louis Hall, Chief Executive Officer of Cerillion plc, commented,
“After a rigorous tender process, we are delighted to have been awarded this contract. It is another demonstration that our SaaS-based, productised approach is highly attractive, both financially and operationally, when compared to traditional bespoke solutions.
“The decision over what approach to take for the enterprise software layer is a critical one. Our solution enables telcos to monetise their network infrastructure assets, increase revenue from their assets, enhance efficiencies and drive the customer experience at lower cost and more simply than other solutions.”
The UK technology sector continues to evolve as one of the most dynamic areas for investors, driven by advancements in software, artificial intelligence (AI), and the Internet of Things (IoT). For 2025, a range of companies across sectors like SaaS, telecom solutions, IoT, and even iGaming are capturing investor interest through innovation and strategic growth. This article explores some of the top UK-listed technology stocks to watch, offering insights into their operations, market positioning, and future growth potential. Whether you’re seeking exposure to established players or up-and-coming disruptors, this list highlights companies poised to make an impact.
Cerillion plc (LON:CER) provides telecom software solutions and enterprise cloud solutions. It 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.
Strix Group plc (LON:KETL) is a global leader in the innovation, design, manufacture and supply of kettle safety controls, heating and temperature controls, steam management and water filtration technologies. They estimate their controls are used approximately 1.2 billion times per day, in more than 100 countries, by over 10% of the world’s population.
CyanConnode Holdings Plc (LON: CYAN) is a world leader in the design and development of Narrowband RF mesh networks that enable Omni Internet of Things (IoT) communications.
Tern PLC (LON:TERN) is an AIM-listed provider of venture capital to exciting IoT innovators seeking scale and market share.
They provide its investors with a unique opportunity to capitalise on the rapid growth of IoT having developed a portfolio that has delivered solid NAV growth since set up in 2013.
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. ITIM’s advanced AI engine optimises pricing and stock levels, and integrates with suppliers for efficient collaboration.
If you are looking to diversify into a Nasdaq stock, Golden Matrix Group, Inc. (Nasdaq: GMGI) is one of the world’s leading iGaming groups, offering casino, sportsbook, and competition products. It has an innovative and proprietary technology platform that enables configurable and scalable iGaming platforms and operate some of the industry’s most iconic brands, including Meridianbet, Expanse Studios, MexPlay, R Kings Competitions, Classics For A Cause and GM-AG.
Louis Hall, CEO 19:23 – Operations 24:47 – Summary & Outlook
Cerillion Plc has established itself as a significant player in the billing and CRM software industry, consistently delivering robust financial performance and expanding its global reach.
The company has a 25-year track record in providing mission-critical software for billing, charging and customer relationship management, mainly to the telecommunications sector but also to other markets, including utilities and financial services. The Company has c. 80 customer installations across c. 45 countries.
Headquartered in London, Cerillion also has operations in India and Bulgaria as well as a sales presence in the USA, Singapore and Australia.
The business was originally part of Logica plc before its management buyout, led by CEO, Louis Hall, in 1999. The Company joined AIM in March 2016.
Cerillion plc (LON:CER) Chief Executive Officer Louis Hall caught up with DirectorsTalk for an exclusive interview to discuss key features from FY results, marketplace, two major contract wins, maintaining R&D levels in 2025, and longer term prospects.
Q1: Louis, can you just take me through the key features from today’s results?
A1: We are very pleased to see new highs across all the key financial measures. In particular, adjusted PBT up 18% to a record £19.8 million and total new orders up 21% to a record £38.1 million. We also saw our new customer sales pipeline grow by 8% to 262 million.
All in all, we are very pleased with that turnout.
Q2: Now, the telecom market is huge. Can you comment on your marketplace and the potential for the business?
A2: Recently, one of the analysts in our space estimated the market to be between £60-70 billion annually. Clearly, us reporting revenue at our levels, we have a very small market share at the moment so the potential to grow into that huge space is enormous so we are very buoyed by that and see that as a great opportunity.
I think the more time goes on, the more of the market is moving towards our SaaS, software-as-a-service, approach to deploying these complex enterprise solutions. So, I think we have a lot to gain going forward.
Q3: Now, you’ve won two major contracts wins this year. Why do you think Cerillion was selected as opposed to one of your competitors?
A3: So, in one case, it was a straight choice between the much more tailored services-heavy solution offered by one of our competitors that was the incumbent and our commercial off-the-shelf, one-size-fits-all, straight-out-of-the-box product solution that is much quicker to deploy and has a much lower TCO. But also, importantly, it gives customers much more autonomy to be able to build new product packages themselves, to build new workflow themselves, and all of those things so having a much lighter vendor touch.
In the second case, it was a case of needing a solution that could consolidate quite a broad range of connectivity services that the customer in Southern Africa provides, such that they could present all those to the customer across one single platform Also, obviously, internally, have much lower costs and be able to manage those services on a single platform.
Q4: Now, you increased investment in R&D to circa 13,000 days, from around 11,000 last year. Do you expect to maintain this level of R&D in FY25 and what are the major areas of focus?
A4: So, I think R&D is crucial to us continuing to evolve as a business, and whilst we don’t need to dramatically increase R&D spending every year, we need to maintain that level of spend and we need to increase it in line with our operating costs. That, I think, is a fundamental feature of a software product business so we’d expect to grow that a bit this year, but certainly we’ll be maintaining it.
I think that, obviously, there’s a lot of talk at the moment about AI so AI is a key focus area for R&D. Also, probably as important in our marketplace at the moment is the digital customer experience.
So, how do you have better contact with customers? How do you give them a better experience of interacting with your communication services, such that they don’t just buy more services, but don’t churn? And digital experience is a really fundamental part of that so a lot of work at the moment is going on in that area as well.
Q5: How confident are you about hitting your goals for the coming financial year and for Cerillion’s longer-term prospects?
A5: Well, I think, as I said earlier, the market we see as moving further around to our view of the world in terms of software as a service solutions in the telco enterprise software space are the way forward for the future.
So, I think we have very strong prospects because we’re already there and we’re already operating that model but also with the growth in the pipeline, it suggests that there’s still strong demand across the board.
