Cerillion plc (LON:CER) is the topic of conversation when Darren Turgel MD at DirectorsTalk caught up with Ciaran Donnelly Technology & Media Analyst at Liberum Equity Research.

What stood out in Cerillion’s H1 2022 trading update?

Cerillion, for the second consecutive year, has reported its strongest ever six-month trading period for H1’22. Sales were +26% yoy. The H1 adjusted EBITDA of c.£7.1m was +48% yoy, representing a margin of c.44%.

This positive trading update, the strong order backlog and the robust pipeline underpins our confidence in the business. Cerillion’s strong balance sheet, underpinned by its net cash position of £16.5m provides the business with the cash to continue to re-invest in the business to support long term growth and opportunistically look at M&A should management choose to, in order to add either talent or technological capabilities to further support / accelerate growth.

What is your view on Cerillion’s future earnings profile and what’s driving it?

The strong performance in H1 suggests good momentum in the business and is reflective of the on-going work on new customer implementation projects and strong demand from existing customers. This is against a wider back drop of continuing strength in demand for telecoms services and substantial on-going investment in 5G and fibre rollout.

Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.

It has established a reputation within the global telecoms market for being a leading supplier of carrier-grade, enterprise billing and CRM software, supporting fixed wire, mobile, broadband and TV communications service providers.