Cerillion beats full-year forecasts as order intake picks up

(Sharecast News) - Annual results from Cerillion impressed the market on Monday after the telecoms software group reported an acceleration in order intake in the second half, with its sales pipeline ending the fiscal year at a record high. The company, which provides billing, charging and CRM solutions to the telecoms industry, reported revenues of £45.4m for the 12 months to 30 September, up 4% year-on-year and slightly ahead of the £45m expected by analysts.

According to broker Canaccord Genuity, the top-line result indicates that second-half sales grew by 15% after falling by 7% in the first half, helped by a strong performance in the software division.

Total new orders were up 25% over the year at a record £47.6m and the back-order book rose 21% to £56.9m, helped by two major new contracts: £25.3m of agreements with an existing, unnamed European customer, and a £8.5m contract with Ucom in Armenia.

Meanwhile, the new customer sales pipeline was up 5% at a new high of £275m.

The adjusted EBITDA margin rose to a record 50.9%, up from 47.4% the year before, lifting adjusted EBITDA up 11% to £23.1m, ahead of the £22.8m expected.

Cerillion proposed a final dividend of 10.6p per share, bringing the total payout for the year to 15.4p, up 17% over last year.

"Cerillion remains well-positioned and we enter the new financial year with a record back-order book and exciting prospects in the new business pipeline," said chief executive Louis Hall. "The company's very strong financial foundations support our growth plans and we view future prospects with great confidence."

Shares were 3% higher at 1,396p by 0922 GMT.