AIM-quoted telecoms enterprise software provider Cerillion (LON:CER) had flagged a weaker first half and management remains positive about growth in full year revenues with a new contract helping to meet the target. The share price has still declined 7.6% to £16.95.
In the six months to March 2025, revenues dipped from £22.5m to £20.9m. The mix of revenues was different with lower software income due to fewer renewals and higher services revenues.
Pre-tax profit fell from £10.5m to £9.3m. R&D spending was increased. Net cash still improved from £26.6m to £31.2m over the 12-month period. The dividend has been raised by one-fifth to 4.8p/share.
The back order book was £50.2m at the end of March 2025 and that has already risen to £56.5m. That follows a £8m implementation services agreement, that will lead to a licence agreement. This follows an acquisition by an existing customer.
Panmure Liberum still forecasts growth in full year revenues from £43.8m to £49m, which would enable pre-tax profit from £19.8m to £20.4m. The shares are trading on 33 times prospective earnings. That reflects the strong track record and confidence that forecasts can be achieved.