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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 | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1,470.00 | 1,450.00 | 1,490.00 | 1,470.00 | 1,470.00 | 1,470.00 | 19,860 | 07:40:54 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Computers & Software-whsl | 39.17M | 12.93M | 0.4391 | 33.48 | 432.87M |
TIDMCER
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
IR GGUGCAUPMGAB
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May 22, 2017 02:00 ET (06:00 GMT)
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