Cerillion (CER ), a provider of software solutions for billing and customer management, has reported a strong performance for the financial year ended 30 September 2024.

Key highlights:

  • Revenue is expected to reach approximately £43.8 million, up from £39.2 million in 2023.
  • Adjusted profit before tax is forecast to exceed £17.9 million, surpassing the market consensus and showing growth from £16.8 million in the previous year.
  • The company's net cash position improved significantly to £29.8 million, compared to £24.7 million in 2023.

The year saw a significant increase in new orders, including two major contracts: a €12.4 million deal with Virgin Media Ireland and an $11.1 million contract with a leading connectivity provider in Southern Africa. The company also expanded its operations in Bulgaria, moving to a larger office in Sofia.

Entering the new financial year, Cerillion boasts a strong back-order book and a healthy sales pipeline, positioning the company for continued growth.

 

View from Vox 

 

Cerillion's latest trading update reflects a company in robust health, demonstrating consistent growth and strong market positioning. The software sector, particularly in areas like billing and customer relationship management, continues to see high demand as businesses seek to enhance operational efficiencies. Cerillion’s ability to capture high-value contracts with key players such as Virgin Media and a major Southern African telecom provider underscores its competitive edge in this market.

The revenue growth to £43.8 million (+11.7% YoY) and exceeding market expectations, but it’s the surge in new orders that truly stands out. The increase in backlog, coupled with major wins, points to future revenue stability and potential upside as these contracts are delivered. 

Cerillion’s strong cash position (£29.8 million) provides a cushion for future investment or shareholder returns, further underlining the company’s financial health. Investors will likely look forward to the full-year results in November, where further insights into current trading and growth opportunities are expected.

Cerillion’s position in a growing market, its strong cash flow, and a promising sales pipeline make it a company to watch, especially for those seeking long-term growth in the tech sector.