20th Apr 2020 12:29
(Alliance News) - Cerillion PLC on Monday said trading in the first half of its financial year aligned with management expectations and the rest of its year looks "very positive" with no slowdown so far from Covid-19.
Shares in Cerillion jumped 15% at midday in London to 242.00 pence.
The billing, charging and customer relations software firm said that trading for the six months ended March was was in line with management forecasts following the signing of four major contracts since mid-June and "continuing demand from existing customers". As such, its prospects for the rest of its year are still looking "very positive".
Revenue for the interim period is expected to have been about GBP10.2 million, representing a 46% year-on-year increase from GBP7.0 million. However, Cerillion noted that "the timing of the closure of major contracts in 2019 resulted in that year being more second-half weighted than normal".
Overall, adjusted earnings before interest, taxa, depreciation, and amortisation is forecast as GBP2.7 million, multiplying from GBP400,000. This is a record for Cerillion since its AIM admission in 2016.
As at March 31, net cash was GBP4.8 million, having been GBP2.6 million the year before.
Cerillion said its sales pipeline is still encouraging and it agreed a major upgrade plus a five-year contract extension with "long-established customer" Manx Telecom, with Manx Telecom agreeing to shift to a new software-as-a-service agreement.
So far, Cerillion said trading activity has not slowed down at all despite the ongoing Covid-19 pandemic. Its customers are mostly telecommunications operators, and provide " critical infrastructure and services".
In the midst of the pandemic, these operators have tended to see strong data traffic levels as a consequence of national lockdowns. Cerillion will post its interim results in mid-May.
Chief Executive Louis Hall said: "Trading continues to show strong momentum, reflecting last year's record level of major new orders, and we have recruited more staff to support ongoing growth. We remain confident about prospects for the remainder of the year, given the existing strong order book, and the pipeline of potential new business remains encouraging.
"Cerillion's long-term prospects remain very positive, underpinned by the quality and growing relevance of our product offering, which is gaining increasing market recognition, as well as the growth opportunities we see in our market."
By Anna Farley; [email protected]
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