Cerillion Share Discussion Threads

[boadicea] 19/11/2024 09:05

Today the company issues a "revised" dividend timetable with xd and register dates of 16th and 17th Jan 2025 respectively.

HOWEVER they have now dropped a second brick in appearing to rescind the increase in the dividend!

RESULTS announcement: "The Board is pleased to propose a 15% increase in the final dividend to 9.2p per share (2023: 8.0p)."

TODAY: "The final dividend of 8.0p per share, which is subject to shareholder approval at the Company's Annual General Meeting to be held on 13 February 2025, ....."

UNBELIEVABLE!

[boadicea] 18/11/2024 13:36

The ex-dividend date requires scrutiny, I think -
"... is payable .... to those shareholders on the Company's register as at the close of business on the record date of 29 December 2024. The ex-dividend date is 28 December 2024."
Did they mean November or were they looking at a 2023 calendar?

[martinmc123] 18/11/2024 11:57

4*
Cerillion posted strong FY24 results this morning and the share price is up 2% and approaching record highs as a result. Revenues were up 12% to £43.8m and adjusted profit before tax was up 18% to a record £19.8m driven by two major new customer wins, significant licence revenue and strong demand from existing customers...from WealthOracle

wealthoracle.co.uk/detailed-result-full/CER/987

[hsduk101] 18/11/2024 08:00

That's some amazing growth there! Everything up, including dividends Profit before tax up 18%. Great growth in this economical climate

[cfro] 18/11/2024 07:31

I just leave this one alone and let Louis Hall continue to work his magic..

[hsduk101] 14/11/2024 10:32

Year end Final results - next Monday 18th November 2024

[hawaly] 25/10/2024 12:29

AIM listed shares seem to be selling off, budget jitters.

[swiss paul] 25/10/2024 12:07

Nigh on 6% down today - a buying opportunty?

[martinmc123] 21/10/2024 10:26

4*
Cerillion, the billing, charging and customer relationship management software solutions provider, issued a positive update on trading for the financial year ended 30 September 2024 and share price is up 3.5% so far this morning. The Company traded well over the second half of the financial year, after record first-half revenue and adjusted pre-tax profit. Revenue for the year is expected to be approximately £43.8m (2023: £39.2m), and adjusted profit before tax is expected to be comfortably ahead of the consensus market forecast of £17.9m (2023: £16.8m)...

...from WealthOracle

wealthoracle.co.uk/detailed-result-full/CER/889

[hsduk101] 21/10/2024 07:35

The biggest positive for me is a stronger orderbook. Next year looks fairly secure and robust

Also profits ahead of expectations or market thoughts is another positive

[lovely_jubbly] 20/10/2024 09:21

Looking forward to the TU tomorrow... hopefully will be the catalyst for the next push higher.

[swiss paul] 27/9/2024 10:08

Thats some bounceback

[swiss paul] 17/9/2024 20:16

Lord Lee did his final bit in the FT. His parting shot was that he still liked Cerillion! 😉

[hsduk101] 20/8/2024 13:56

On a very nice rise this. Progressing very well

[boadicea] 16/8/2024 14:53

1900 paid, another ath. Aiming for 2000 before long?

[hsduk101] 22/7/2024 10:28

Great to see it hit the 1800 range. Seems to be flying along

[swiss paul] 16/7/2024 16:14

Just love this share!

[lovely_jubbly] 13/7/2024 11:11

Agreed - I think this looks promising..

[hsduk101] 10/7/2024 08:57

Good to see a new all time high share price here.

[robow] 13/6/2024 10:19

from Shares magazine this morning. A terrific write up

Cerillion is a built-in-Britain quality tech growth stock that you should own

Billing and customer management platform ticks so many investor boxes
13 June 2024|Great Ideas


Cerillion (CER:AIM) £15.78
Market cap: £565 million
Not every investor will back young (ish) technology-led growth companies because it often means being willing to steal yourself through years of painful losses at the start of the journey. It’s why so many feel the need to look overseas for sustainable tech growth, with real profits and cash flows.

But while built-in-Britain opportunities in the space may be rare, they do exist, and Shares believes that Cerillion (CER:AIM) is one of them. If you’ve not come across the company before, in short, it scores very highly on core quality growth metric like returns on capital, equity and operating margins, throws off oodles of cash and appears to have years of growth runway before it.

Data suggests a global opportunity in this space worth $70 billion by 2027, so while it doesn’t operate across that entire scope (it doesn’t work in China, for example) it’s still an enormous opportunity, with potential to scale out vertically into other utility industries, like water, and electricity, for example.


WHAT THE BACKGROUND?

It floated in 2016 on the junior AIM market, which may be one reason why you might have missed its progress, but has been around for nearly three decades, having been spun-out via a management buyout from Logica in 1999, and it is still led by Louis Hall, chief executive, and the main driver of that spin-out.

Cerillion built its reputation on an integrated enterprise billings and customer relationship management software platform sold to telecoms companies, particularly tier two and three operators. But it has expanded the suite over the years to cover charging, interconnect, mediation, and provisioning solutions.

The company names clients including KDDI (9433:TYO), listed in Japan, India’s Airtel, and Manx Telecom, the Isle of Man operator that used to be listed on the London market until its 2019 private equity buyout. More familiar names like Three, Virgin Media and Cable & Wireless are also on the list.

ATTRACTIVE OFF-THE-SHELF SOLUTIONS

Crucially, Cerillion’s suite offers the industry the kind of flexible, off-the-shelf solutions needed to monetise vast capital investment in new 5G mobile (6G is coming) and fibre networks in a savagely competitive market environment.

Increasingly selling five-year software-as-a-service contracts, Cerillion’s investment in its IT suite and headcount (US in particular) means it has more tools in its stack to sell to clients, so average contract sizes have been rising. This is evidenced by November 2023’s first tier one client, an unnamed European telco, worth €12.4 million over the full term of the contract, and an $11.1 million deal with a South African operator, announced in May 2024.

This helps explain a consistently growing new sales pipeline that hit a record £254 million in the first half of fiscal 2024 (to end of September). Annual recurring revenues account for about two-thirds of the firm’s £22.5 million sales, particularly sticky given the value proposition, switching difficulty and costs.


IMPROVING QUALITY

Operating margins continue to expand to 43.4% in the first half, showing that Cerillion is keeping a firm grip on running costs. It threw off £4.7 million of free cash leaving the company debt free with £26.6 million net cash on the books.

It pays modest dividends, the full year yield is about 0.8%, but investors would be buying for growth, not income. And overall, shareholder returns have shone. In three years returns on capital and equity have grown from 29.7% to 37.3% and 35.5% to 40.7% on equity.

In five years, the stock has soared 928%, and 2,005% since IPO, and now trades on rolling 12-months PE (price to earnings) multiple of about 30, according to Stockopedia data. But we believe long-run growth stories like Cerillion need to be judged over several years, not just the next year.

Using forecasts out to full year 2026 supplied by Berenberg and Liberum implies an average PE of near 25 over that period. And both brokers suggest upside risk to their estimates. One final point, Cerillion could be targeted by private equity firms. Hall owns just over 30% of the shares, so any offer would have to be compelling and at a sharp premium to current valuations.

But as we have seen in recent years, private equity buyers have cash to splash and are keen over UK quality assets possibly trading at discounts to overseas peers. So, no takeover slam dunk, but it’s another factor to build into your investment decision.

[hsduk101] 07/6/2024 13:00

I can see the Virgin Media contract being a good stepping stone to further growth.It's probably not visible yet what financial benefits it will bring, but that will probably come out in future trading statements

[cfro] 07/6/2024 12:30

I saw that but i suspect many didn't as it wasn't well flagged.

Louis Hall talked about winning much larger contracts with more prominent tel co's in the podcast above.

Looks like this might be a stepping stone to that end..

[mickeyb] 07/6/2024 11:10

Surprised no one has mentioned a nice contract with Virgin media Ireland that was announced on 3/6/24.

Appreciate no value or how long contract is for, but winning a contract with a main telecoms company has to be good and will show future customers the level of confidence big companies have in Cerillion.