Cerillion plc (LON:CER) continues to shine as a standout player in the technology sector, demonstrating robust performance and sustained growth. The company recently unveiled its full-year results, which exceeded expectations and highlighted its ability to navigate challenges and capitalise on opportunities.
According to Harold Evans, contributing analyst at Singer Capital Markets, the company’s adjusted profit before tax (PBT) surged by an impressive 18% year-on-year to £19.8 million. This result was not only 15% higher than Singer Capital Markets’ forecasts but also 8% above consensus expectations—despite headwinds from foreign exchange. Evans described this as “a very strong performance,” with revenue climbing 12% to £43.8 million (14% at constant currency), fuelled by major implementations and new wins.
Cerillion also achieved record-breaking new orders, totalling £38.1 million (a 21% year-on-year increase), while its year-end order book reached £46.9 million, providing encouraging visibility for FY25. “In summary – another very strong year, while the long-term growth opportunity remains very much in play,” noted Evans.
Impressive Margins and Financial Resilience
The company’s financial metrics further underscore its success. Gross margins improved by approximately 200 basis points to 80.5%, bolstered by increased day rates and controlled payroll costs, which rose by just 6%. This propelled EBITDA margins to 47%, up from 46% the previous year.
Despite a slight lag in cash flow due to working capital requirements, year-end cash rose by 21% to £29.9 million. Evans highlighted that Cerillion’s disciplined financial approach positions it well for sustained growth and resilience in the evolving market landscape.
Harnessing the Demand for SaaS in the B/OSS Space
Cerillion’s dominance in the cloud-based Business and Operations Support Systems (B/OSS) sector remains a key driver of its success. Evans emphasised how Cerillion’s SaaS solutions continue to resonate with Communication Service Providers (CSPs) due to their ability to optimise infrastructure, reduce costs, and enhance customer experiences.
Evans commented: “The market is evidently gravitating towards Cerillion’s SaaS solution, given its unrivalled speed to market, lower total cost of ownership, and the way it enables data interoperability and product innovation. It is hard to see how (or why) Cerillion won’t become a materially larger business over time and with even higher margins.”
Outlook: Sustained Growth Ahead
Looking ahead, Cerillion plc appears well-poised for continued growth, supported by a record £262 million sales pipeline and strong opportunities for licence renewals and customer expansions. Harold Evans concluded that while existing P&L forecasts for FY24 imply a 9% revenue increase (rising to 10% in FY26), the company has “every opportunity to do better” as its pipeline materialises.
On a Final Note
Cerillion’s exceptional performance reflects its strategic vision, operational excellence, and ability to adapt to shifting market needs. With a solid financial foundation and an expanding pipeline, the company is well-positioned for long-term success. Harold Evans’ confident analysis underscores the immense potential of Cerillion as it continues to deliver value for stakeholders.
