Cerillion plc (LON:CER) is the topic of conversation with Andrew Ripper, Equity Research at Liberum, following the company’s published annual results for the twelve months ended 30 September 2023. We asked:

Q1. What stood out for you in the latest results?

The big news came 3 weeks before results with the announcement of a €12m contract with a Tier-1 Telco client in Europe. This is a strategically important win, which could help to open up more Tier-1 opportunities over time.

Q2. How do you view telecommunications market demand for Cerillion’s products/services. 

The BSS/OSS market is large. Demand is growing, driven by convergence, the need to modernise systems and improve customer/employee experience, monetise infrastructure investments and reduce costs.

Q3. Cerillion’s results highlight an improving sales pipeline and order book. What are your thoughts on that?

Cerillion’s sales pipeline is at a record high, which suggests that the group is well placed for continued good growth. We expect 14% revenue growth in FY24E, supported by the Tier-1 win referred to above. 

Q4. Finally, are Cerillion’s shares reasonably priced currently?

The shares have had a good run on the back of recent updates and the above contract win. They may pause for breath in the short term but we see plenty of scope for value creation in the medium term, as the business continues to grow faster than the market.

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.