Share Name Share Symbol Market Type Share ISIN Share Description
Cerillion PLC LSE:CER London Ordinary Share GB00BYYX6C66 ORD 0.5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 122.50p 120.00p 125.00p 122.50p 122.50p 122.50p 0 06:37:40
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 8.4 0.2 1.3 94.2 36.15

Cerillion PLC Interim Results

22/05/2017 7:00am

UK Regulatory (RNS & others)


Cerillion (LSE:CER)
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RNS Number : 7257F

Cerillion PLC

22 May 2017

22 May 2017

AIM: CER

Cerillion plc

("Cerillion" or "the Company" or "the Group")

Interim results for the six months ended 31 March 2017

Cerillion, the billing, charging and customer relationship management software solutions provider, today issues its interim results for the six months ended 31 March 2017(1) .

Highlights

   --     Continuing encouraging progress 
   --     Revenue up by 10% to GBP7.5m (2016: GBP6.9m) 
   -    helped by strong growth in software revenue(2) , up 47% to GBP4.1m 
   -    services revenue contributed GBP3.1m 
   --     Recurring revenue(3) accounted for 29% of total revenues at GBP2.2m (2016: GBP2.2m) 

-- Strong level of new orders, up by 37% to GBP9.4m (2016: GBP6.9m) - a record for any six-month period

   --     Back order book(4) up by 11% to GBP14.7m (2016: GBP13.3m) - a record level 
   --     Adjusted profit before tax up by 31% to GBP0.9m(1) (2016: GBP0.7m) 
   --     Adjusted earnings per share up by 25% to 2.8p(5) (2016: 2.3p) 
   --     Net cash as at 31 March 2017 stood at GBP1.1m 
   --     Interim dividend increased by 8% to 1.4p (2016: 1.3p) 
   --     Major new contracts included: 
   -     $2.8m follow-on contract with major customer in the Americas 
   -     EUR3.3m contract with a new, quad-play customer in Europe 
   -     EUR2.4m contract with a new, wholesale customer in Europe 
   --     Group remains well positioned for further progress 

Louis Hall, CEO of Cerillion, commented:

"We have made pleasing progress over the period, delivering increased profitability, in line with management expectations. Our core enterprise software business secured significant new orders, including two new customer wins, as well as a major follow-on contract with an existing customer. These new wins, combined with our back order book which stands at a record high, will help to underpin the Group's ongoing performance.

With a strong level of contracted sales in place, the Board anticipates further progress over the second half and believes that Cerillion remains well positioned to meet its expectations for the full year."

Notes

(1) Cerillion plc acquired Cerillion Technologies Limited on 18 March 2016 in conjunction with the completion of its IPO on AIM. Prior to 18 March 2016, Cerillion plc had no trading activity. Consequently, the results referred to in these highlights and in the Chairman and Chief Executive Officer's Report are based on the consolidated figures for the Cerillion Technologies Limited Group, prepared under United Kingdom Generally Accepted Accounting Principles, which includes Cerillion Technologies Limited and its subsidiaries (Cerillion (India) pvt and Cerillion Inc). Interim Financial Information for Cerillion plc is included in Appendix 1.

2 Revenue derived from software licence, support and maintenance sales.

(3) Recurring revenue includes annualised support and maintenance, managed service and Skyline revenue.

(4) Back order book consists of GBP10.4m of sales contracted but not yet recognised at the end of the reporting period plus GBP4.3m of annualised support and maintenance revenue. It is anticipated that 70% of the GBP10.4m of sales contracted but not yet recognised as at the end of the reporting period will be recognised within the next 4 to 5 quarters.

(5) Based on earnings for Cerillion Technologies Limited for the reporting period and the total number of Cerillion plc shares in issue as at 31 March 2017.

For further information please contact:

 
 Cerillion plc                c/o KTZ Communications 
  Louis Hall, CEO              T: 020 3178 6378 
  Oliver Gilchrist, CFO 
 
 Shore Capital (Nomad and     T: 020 7408 4090 
  Broker) 
 Bidhi Bhoma 
  Toby Gibbs 
 
 KTZ Communications           T: 020 3178 6378 
 Katie Tzouliadis 
  Emma Pearson 
 
 

About Cerillion

Cerillion is a leading provider of mission critical software for billing, charging and CRM, with a 17 year track record in providing comprehensive revenue and customer management solutions. The Company has 80 customer installations across 42 countries, principally serving the telecommunications market.

The Company is headquartered in London and also has operations in Pune, India, Miami and Sydney.

CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S REPORT

Overview

Cerillion continues to make very encouraging progress and the financial results for the six months ended 31 March 2017 reflect this. Revenue is up by 10% to GBP7.5m, helped by strong software revenue sales, and adjusted profit before tax is up by 31% to GBP0.9m, in line with management expectations. New orders secured in the period were also strong, rising by 37% to GBP9.4m, a new high for a six month period.

The Company remains well positioned for the second half of the year and we continue to work on a strong pipeline of new customer opportunities.

Financial Overview

For the six months to 31 March 2017, the Group's total revenue rose by 10% to GBP7.5m (2016: GBP6.9m), helped by strong growth in software revenues(2) , which increased by 47% to GBP4.1m (2016: GBP2.8m) and accounted for 54% of total revenue (2016: 41%). This significant increase reflected both the level of new software licence sales as well as the growth in the customer base.

Services revenue contributed GBP3.1m (2016: GBP3.7m) and made up 41% of total revenue (2016: 53%). Third party income was stable at GBP0.4m (2016: GBP0.4m) and accounted for 5% of total revenue (2016: 6%).

Established customers (those acquired at least 12 months before the beginning of the reporting period) typically generate a high proportion of the Group's income and, in the first half, established customers generated 79% of total revenue (2016: 78%). Recurring revenue, from support and maintenance and managed service contracts, was broadly flat at GBP2.2m (2016: GBP2.2m) and accounted for 29% of the Group's income (2016: 32%).

As expected, overhead costs increased to GBP4.1m (2016: GBP3.8m), reflecting the expansion in resource, with personnel costs higher at GBP2.5m (2016: GBP2.3m).

Increased revenues largely drove the significant rise in adjusted operating profit, which was 40% higher at GBP1.0m (2016: GBP0.7m). The charge for amortisation of R&D costs was GBP0.4m (2016: GBP0.2m).

Adjusted profit before tax rose by 31% to GBP0.9m (2016: GBP0.7m) and adjusted earnings per share increased by 25% to 2.8p(5) (2016: 2.3p).

The Group ended the period with increased net assets of GBP12.9m (2015: GBP12.1m) of which GBP5.3m was cash (2016: GBP6.5m).

Cash Flow and Banking

Net cash as at 31 March 2017 stood at GBP1.11m, reflecting cash at GBP5.25m and debt at GBP4.14m (2016: GBP5m). The Company generated net cash from operations of GBP1.825m in the six month period to 31 March 2017.

Expenditure on capitalised R&D was in line with the prior period at GBP0.3m as we continued to invest in product development to enhance our intellectual property. Expenditure on fixed assets was GBP0.075m (2016: GBP0.1m), resulting in free cash generation of GBP1.45m in the period. This was utilised to pay the final dividend of GBP0.8m declared in respect of the year ended 31 December 2016 and to repay GBP0.4m of the GBP5m term loan taken up in conjunction with the AIM IPO, GBP0.9m has now been repaid since the IPO (2016: nil).

Dividend

The Board is pleased to declare an interim dividend of 1.4p per share. This represents an 8% increase on the prior year's interim dividend of 1.3p per share. The interim dividend will become payable on 22 June 2017 to those shareholders on the Company's register as at the close of business on the record date of 2 June 2017. The ex-dividend date is 1 June 2017.

As previously stated, the Board intends to pay out between a third to a half of the Group's free cash flow as dividends each year, subject to the Group's performance.

Operational Overview

The Company's admission to AIM in March 2016 has enhanced Cerillion's market positioning and, later in the year, in November 2016, we were also pleased to see Cerillion designated in the "Visionaries" quadrant of Gartner's report*, "Magic Quadrant for Integrated Revenue and Customer Management (IRCM) for CSPs". In the prior year, in 2015, Cerillion was positioned in the "Niche Players" quadrant. Gartner evaluated both our core Cerillion Enterprise suite, the Company's pre-integrated BSS/OSS solution, as well as Cerillion Skyline, our Software-as-a-Service (SaaS) billing and subscription management solution.

We were pleased with the progress the Group made over the first half. We secured new orders worth a total of GBP9.4m (2016: GBP6.9m) for our enterprise CRM and billing platform. This included the three major wins we previously announced, which were: a $2.8m contract with an existing customer in the Americas; a EUR3.3m agreement with new customer, Scarlet, a Belgian virtual network operator, owned by Proximus, which provides fixed and mobile telephony services to the residential market; and a EUR2.4m contract with a new wholesale customer in Europe.

It is worth highlighting that our real-time Convergent Charging System ("CCS") helped to secure these major wins. CCS is a key differentiator as it enables telecoms operators and service providers to converge prepaid and postpaid billing for fixed and mobile services on a single platform, a key goal. The solution extends our coverage into prepaid as well as postpaid applications and is particularly relevant to the faster growing mobile and mobile data sectors.

The new order wins resulted in an 11% (or GBP1.4m) increase in our back order book(4) to a record high of GBP14.7m (2016: GBP13.3m) and will help to drive implementation projects over the coming quarters. In addition to this, we are currently bidding on a range of strong opportunities and hope to convert a number of these.

We also saw an encouraging uptick in the Cerillion Skyline's pipeline. This still nascent part of the business leverages Cerillion's sophisticated billing capability - developed for the telecoms market place - to open up opportunities in other sectors. Our solution is a completely new cloud billing application which enables service providers of all sizes to access the same powerful billing capabilities that could previously only be afforded by large companies with significant resources.

Our new operations, in Miami and Australia, support our existing activities in these regions and are helping to drive new customer opportunities.

Outlook

The strong level of new orders won in the first half is very encouraging and will help to underpin ongoing growth in the second half of the year and beyond. Accordingly, the Board looks forward to reporting on further progress and believes that Cerillion remains well positioned to meet its expectations for the full year.

Louis Hall, Chief Executive Officer

Alan Howarth, Chairman

Notes:

(1) Cerillion plc acquired Cerillion Technologies Limited on 18 March 2016 in conjunction with the completion of its IPO on AIM. Prior to 18 March 2016, Cerillion plc had no trading activity. Consequently, the results referred to in these highlights and in the Chairman and Chief Executive Officer's Report are based on the consolidated figures for the Cerillion Technologies Limited Group, prepared under United Kingdom Generally Accepted Accounting Principles, which includes Cerillion Technologies Limited and its subsidiaries (Cerillion (India) pvt and Cerillion Inc). Interim Financial Information for Cerillion plc is included in Appendix 1.

2 Revenue derived from software licence, support and maintenance sales.

(3) Recurring revenue includes annualised support and maintenance, managed service and Skyline revenue.

(4) Back order book consists of GBP10.4m of sales contracted but not yet recognised at the end of the reporting period plus GBP4.3m of annualised support and maintenance revenue. It is anticipated that 70% of the GBP10.4m of sales contracted but not yet recognised as at the end of the reporting period will be recognised within the next 4 to 5 quarters.

(5) Based on earnings for Cerillion Technologies Limited for the reporting period and the total number of Cerillion plc shares in issue as at 31 March 2017.

*Gartner Report

Gartner Magic Quadrant for Integrated Revenue and Customer Management for CSPs by Norbert J Scholz, Jouni Forsman, Amresh Nandan, 17 October 2016. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Gartner Report(s) described herein, (the "Gartner Report(s)") represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Each Gartner Report speaks as of its original publication date (and not as of the date of these Accounts) and the opinions expressed in the Gartner Report(s) are subject to change without notice.

Proforma Consolidated Income Statement*

for the six months ended 31 March 2017

 
                                 2017          2016 
                                  GBP           GBP 
 
 Revenue                    7,544,199     6,853,228 
 
 Cost of sales            (1,921,620)   (1,897,375) 
 
 Gross profit               5,622,579     4,955,853 
 
 Admin expenses           (4,119,064)   (3,827,182) 
 
 EBITDA                     1,503,515     1,128,671 
 
 Depreciation 
  & amortisation            (518,838)     (427,166) 
 
 Operating profit             984,677       701,505 
 
 Financial expenses          (61,585)       (1,198) 
 
 Financial income               1,523         3,167 
 
 Profit before tax            924,615       703,474 
 
 Tax                         (95,807)      (38,716) 
 
 Profit for period            828,808       664,758 
                         ------------  ------------ 
 

*Cerillion plc acquired Cerillion Technologies Ltd on 18 March 2016 in conjunction with the completion of its IPO on AIM. Prior to 18 March 2016, Cerillion plc had no trading activity. Consequently, this Pro-Forma Consolidated Income Statement is based on the consolidated figures for the Cerillion Technologies Limited Group, which includes Cerillion Technologies Ltd and its subsidiaries (Cerillion (India) pvt and Cerillion Inc).

Appendix 1: Cerillion plc Interim Financial Information

Unaudited Consolidated Statement of Comprehensive Income(8)

for the six months ended 31 March 2017

 
 GBP                           Consolidated   Consolidated   Consolidated 
                                  Unaudited      Unaudited        Audited 
                                  half year      half year        year to 
                                         to             to         30 Sep 
                                     31 Mar         31 Mar           2016 
                                       2017           2016 
 Continuing operations 
 Revenue                          7,544,199        411,117      8,364,774 
 Cost of sales                  (1,921,620)      (141,461)    (2,262,699) 
                              -------------  -------------  ------------- 
 Gross profit                     5,622,579        269,656      6,102,075 
 Operating expenses             (4,837,357)      (266,683)    (4,923,584) 
                              -------------  -------------  ------------- 
 
 Operating profit 
  before exceptional 
  transaction costs                 785,222          2,973      1,178,491 
 Exceptional transaction 
  costs                                   -      (826,783)      (746,055) 
 Operating profit/(loss)            785,222      (823,810)        432,436 
 Finance costs                     (61,584)           (57)      (199,559) 
 Finance income                       1,523          3,728          6,059 
                              -------------  -------------  ------------- 
 Profit/(loss) before 
  tax                               725,161      (820,139)        238,936 
 Taxation                           (1,488)              -         68,032 
                              -------------  -------------  ------------- 
 Profit/(loss) for 
  the period                        723,673      (820,139)        306,968 
 Other comprehensive 
  income 
 Exchange differences 
  on translating foreign 
  operations                          5,203              -        145,913 
                              -------------  -------------  ------------- 
 Total comprehensive 
  profit/(loss) for 
  the period                        728,876      (820,139)        452,881 
                              -------------  -------------  ------------- 
 
   All transactions 
   are attributable 
   to the owners of 
   the parent. 
 Basic and diluted 
  profit/(loss) per 
  share 
 from continuing operations      2.45 pence    (6.2) pence      1.3 pence 
 
 
 
 
 
 
 
 
 

(8) Comparatives for FY2016 do not include a full year of results of the subsidiary companies as the Group was only formed from the date of acquisition, being 18 March 2016.

Unaudited Condensed Consolidated Statement of Changes in Equity

as at 31 March 2017

 
 GBP                        Share          Share     Foreign      Retained          Total 
                          capital        premium    exchange      earnings         Equity 
                                                     reserve 
 
 Balance at 1 
  October 2015             15,660              -           -     (580,500)      (564,840) 
---------------------  ----------  -------------  ----------  ------------  ------------- 
 Loss for the 
  period                        -              -           -     (820,139)      (820,139) 
---------------------  ----------  -------------  ----------  ------------  ------------- 
 Total comprehensive 
  income                        -              -           -     (820,139)      (820,139) 
 Shares issued            131,907     13,318,725           -             -     13,450,632 
---------------------  ----------  -------------  ----------  ------------  ------------- 
 Balance at 31 
  March 2016              147,567     13,318,725           -   (1,400,639)     12,065,653 
---------------------  ----------  -------------  ----------  ------------  ------------- 
 
 Profit for the 
  period                        -              -           -     1,127,107      1,127,107 
 Exchange difference 
  on translating 
  foreign operations            -              -     145,913             -        145,913 
---------------------  ----------  -------------  ----------  ------------  ------------- 
 Total comprehensive 
  income                        -              -     145,913     1,127,107      1,273,020 
 Dividends                      -              -           -     (383,675)      (383,675) 
 Balance at 30 
  September 2016          147,567     13,318,725     145,913     (657,207)     12,954,998 
---------------------  ----------  -------------  ----------  ------------  ------------- 
 Profit for the 
  period                        -              -                   723,673        723,673 
 Exchange difference 
  on translating 
  foreign operations            -              -       5,203             -          5,203 
---------------------  ----------  -------------  ----------  ------------  ------------- 
 Total comprehensive 
  income                        -              -       5,203       723,673        728,876 
 Dividends                      -              -           -     (767,349)      (767,349) 
---------------------  ----------  -------------  ----------  ------------  ------------- 
 Balance at 31 
  March 2017              147,567     13,318,725     151,116     (700,883)     12,916,525 
---------------------  ----------  -------------  ----------  ------------  ------------- 
 

Unaudited Condensed Consolidated Balance Sheet(8)

as at 31 March 2017

 
 GBP                                        Consolidated   Consolidated   Consolidated 
                                Unaudited      Unaudited      Unaudited        Audited 
                                     Note         31 Mar         31 Mar         30 Sep 
                                                    2017           2016           2016 
 Assets 
 Non-current 
 Goodwill                                      2,053,141      1,973,141      2,053,141 
 Intangible assets                             6,689,066      6,949,814      6,979,370 
 Property, plant 
  and equipment                                  363,584        400,799        411,505 
 Deferred tax                                    320,282        363,394        320,546 
                                           -------------  -------------  ------------- 
                                               9,426,073      9,687,148      9,764,562 
                                           -------------  -------------  ------------- 
 
 Current assets 
 Trade receivables                             3,245,899      2,927,708      2,894,015 
 Other receivables                      4      6,342,830      4,426,179      6,270,857 
 Cash and cash equivalents                     5,254,523      6,454,430      5,006,185 
                                           -------------  -------------  ------------- 
                                              14,843,252     13,808,317     14,171,057 
                                           -------------  -------------  ------------- 
 
 Total assets                                 24,269,325     23,495,465     23,935,619 
                                           -------------  -------------  ------------- 
 
 Equity and liabilities 
 Shareholders' equity 
 Called up share 
  capital                                        147,567        147,567        147,567 
 Share premium account                        13,318,725     13,318,725     13,318,725 
 Foreign exchange 
  reserve                                        151,116              -        145,913 
 Retained loss                                 (700,883)    (1,400,639)      (657,207) 
                                           -------------  -------------  ------------- 
 Total Equity                                 12,916,525     12,065,653     12,954,998 
                                           -------------  -------------  ------------- 
 
 Liabilities 
 Non-current 
 Borrowings                                    3,138,111      4,000,000      3,572,602 
 Other non-current 
  liabilities                                  1,186,486      1,440,465      1,400,805 
                                           -------------  -------------  ------------- 
                                               4,324,597      5,440,465      4,973,407 
                                           -------------  -------------  ------------- 
 
 Current liabilities 
 Trade payables                                  651,254        919,162        336,684 
 Other payables                         4      5,376,949      4,070,185      4,670,530 
 Borrowings - current                          1,000,000      1,000,000      1,000,000 
                                           -------------  -------------  ------------- 
                                               7,028,203      5,989,347      6,007,214 
                                           -------------  -------------  ------------- 
 
 Total equity and 
  liabilities                                 24,269,325     23,495,465     23,935,619 
                                           -------------  -------------  ------------- 
 

Unaudited Condensed Consolidated Cash Flow Statement

for the six months ended 31 March 2017

 
 GBP                                   Consolidated   Consolidated   Consolidated 
                                          Unaudited      Unaudited        Audited 
                                               half      half year           year 
                                               year             to             to 
                                              to 31         31 Mar         30 Sep 
                                           Mar 2017           2016           2016 
 Operating activities 
 Reconciliation of profit 
  to operating cash flows 
 Profit/(loss) for the 
  period                                    723,673      (820,139)        306,968 
 Add back: 
 Taxation                                     1,488              -       (68,032) 
 Depreciation                               127,988          9,157        142,695 
 Amortisation and impairment                590,304         17,927        571,555 
 Finance costs                               61,584             57        199,559 
 Finance income                             (1,523)        (3,728)        (6,059) 
                                          1,503,514      (796,726)      1,146,686 
 (Increase)/ decrease in 
  trade and other receivables             (423,857)         45,119    (1,765,866) 
 Increase/ (decrease) in 
  trade and other creditors                 868,989      (106,823)      (101,524) 
                                      -------------  -------------  ------------- 
 Cash from/(used in) operations           1,948,646      (858,430)      (720,704) 
 Finance costs                             (61,584)           (57)       (72,981) 
 Finance income                               1,523          3,728          6,059 
 Tax paid                                  (63,543)              -       (30,511) 
                                      -------------  -------------  ------------- 
 Net cash flows generated 
  from/(used in) operations 
  activities                              1,825,042      (854,759)      (818,137) 
                                      -------------  -------------  ------------- 
 
 Investing activities 
 Acquisition of subsidiary 
  undertakings, net of cash 
  and overdrafts acquired                         -   (11,129,200)   (11,129,200) 
 Capitalisation of development 
  costs                                   (300,000)              -      (601,111) 
 Purchase of property, 
  plant and equipment                      (74,496)       (27,084)      (136,993) 
                                      -------------  -------------  ------------- 
 Net cash flows used in 
  investing activities                    (374,496)   (11,156,284)   (11,867,304) 
                                      -------------  -------------  ------------- 
 
 Financing activities 
 Issue of ordinary share 
  capital                                         -     13,450,632     13,450,632 
 Borrowings repaid                        (434,492)              -      (427,398) 
 Borrowings received                              -      5,000,000      5,000,000 
 Dividends paid                           (767,349)              -      (383,675) 
                                      -------------  -------------  ------------- 
 Net cash flows (used in)/generated 
  from financing activities             (1,201,841)     18,450,632     17,639,559 
                                      -------------  -------------  ------------- 
 
 Net increase/ (decrease) 
  in cash and cash equivalents              248,705      6,439,589      4,954,118 
 Translation differences                      (367)              -         37,226 
 Cash and cash equivalents 
  at beginning of period                  5,006,185         14,841         14,841 
                                      -------------  -------------  ------------- 
 Cash and cash equivalents 
  at end of period                        5,254,523      6,454,430      5,006,185 
                                      -------------  -------------  ------------- 
 

Unaudited Notes

   1.   Basis of Preparation and Accounting Policies 

The condensed financial information is unaudited and was approved by the Board of Directors on 19 May 2017.

The Company is a public limited company, which was incorporated in England and Wales on 5 March 2015. The address of its registered office is 125 Shaftesbury Avenue, London, WC2H 8AD. The interim financial information for the six months ended 31 March 2017 has been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations endorsed by the European Union (EU). The interim financial information for the six months ended 31 March 2017 has been prepared under the historical cost convention.

The interim financial information for the six months ended 31 March 2017 does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 and no statutory accounts have been prepared, audited or filed with the Registrar of Companies in England and Wales since incorporation.

The preparation of the interim financial information for the six months ended 31 March 2017 in conformity with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Statements and the reported amounts of revenues and expenses during the period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

There is no material difference between the fair value of financial assets and liabilities and their carrying amount.

The functional and presentational currency is UK Sterling.

   2.   Going concern 

The Directors have assessed the current financial position of the Group, along with future cash flow requirements, to determine if the Group has the financial resources to continue as a going concern for the foreseeable future. The conclusion of this assessment is that it is appropriate that the Group be considered a going concern. For this reason the Directors continue to adopt the going concern basis in preparing the interim financial information for the six months ended 31 March 2017. The interim financial information does not include any adjustments that would result in the going concern basis of preparation being inappropriate.

   3.   Basis of consolidation 

The consolidated financial information incorporates the financial information of the Company and entities controlled by the Company (its subsidiaries) at 31 March 2017. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefit from its activities.

Except as noted below, the financial information of subsidiaries is included in the consolidated financial statements using the acquisition method of accounting. On the date of acquisition the assets and liabilities of the relevant subsidiaries are measured at their fair values.

All intra-Group transactions, balances, income and expenses are eliminated on consolidation.

   4.   Other receivables and other payables 
 
                                     Unaudited    Unaudited      Audited 
                                        31 Mar       31 Mar       30 Sep 
                                          2017         2016         2016 
                                           GBP          GBP          GBP 
 Other receivables 
 Amounts recoverable 
  on contracts                       5,756,101    3,768,810    5,565,952 
  Prepayments                          128,620      154,195      240,405 
 Other receivables                     458,109      503,174      464,500 
                                     6,342,830    4,426,179    6,270,857 
                                   -----------  -----------  ----------- 
 Other payables 
 Taxation                              131,714      121,444       99,714 
 Other taxation and social 
  security                             195,150      462,880      255,876 
 Pension                                39,262       41,493       38,653 
 Accruals                            1,168,903      820,909    1,729,473 
  Deferred income                    3,173,884    2,055,623    1,972,192 
 Ubisense loan                         240,000      240,000      120,000 
 Derivative financial 
  instrument                                 -            -      121,410 
  Other payables                       428,036      327,836      333,212 
                                     5,376,949    4,070,185    4,670,530 
                                   -----------  -----------  ----------- 
 
   5.   Availability of this announcement 

This announcement together with the financial statements herein and a presentation in respect of the interim financial results are available on the Group's website, www.cerillion.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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