Panmure Liberum has upgraded its forecasts for AIM-quoted telecoms enterprise software provider Cerillion (LON:CER) following an upbeat trading statement. The company continues to grow faster than its underlying market.
Revenues grew 14% in the second half, enabling profit to be better than expected. There are record new orders and this underpins further growth in the next couple of years.
The €12.4m order from the previously unnamed Virgin Media Ireland is contributing to the growth. It probably generated £6m last year. This is the first contract with a tier-1 telecoms company and could help to win other contracts with this level of business.
In the year to September 2024, revenues were 12% ahead at £43.8m. Panmure Liberum has raised its pre-tax profit forecast from £18m to £19m.
Cerillion’s net cash pile has increased to £29.8m and could reach £50m by the end of September 2026. Panmure Liberum has left its 2024-25 and 2025-26 forecasts alone, but they are likely to be revised at the time of the full year figures.
The target price has been raised from 1700p to 1850p. The share price improved 2.89% to 1780p.