Growth slowed at AIM-quoted telecoms enterprise software provider Cerillion (LON:CER) last year, but that was due to the timing of contract wins. This year growth will accelerate because of contracts already won and there could be further wins in the coming months.
In the year to September 2025, revenues were 4% ahead at £45.4m – they were lower at the interim stage. Underlying pre-tax profit was 10% higher at £21.8m. The total dividend is 15.4p/share, up 17%. Net cash is £34.4m.
New orders were 25% higher at £47.6m. There was a contract with an existing customer worth £25.3m in total that was won at the end of the period. Including recurring maintenance and other revenues, there is around £25m of revenues already booked for this financial year.
The potential sales pipeline is at a new record level of £275m even after the recent contract wins. There is continued investment in technology, including AI.
Mergers in Cerillion’s market sector are likely to reduce competition at tenders and they are also providing opportunities to take on experienced staff from the merged entities.
Panmure Liberum forecasts 2025-26 revenues of £54m, while margins are likely to decline from their current high levels due to investment in additional sales staff. Pre-tax profit is forecast at £22.7m, rising to £24.9m next year. Cerillion tends to beat forecasts and a large contact win early enough in the year would boost the current forecast.
The share price is 55p higher at 1410p, but it is 19% lower this year. The prospective multiple is 24 and cash will continue to increase.