Cerillion PLC Interim Results (6844K)

TIDMCER

RNS Number : 6844K

Cerillion PLC

09 May 2022

9 May 2022

AIM: CER

Cerillion plc

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

Interim results

for the six months ended 31 March 2022

Record Six-month Period and Continuing Strong Prospects

Cerillion plc, the billing, charging and customer relationship management software solutions provider, today issues its interim results for the six months ended 31 March 2022.

 
Results                        H1 2022   H1 2021   Change 
 
Revenue                        GBP16.1m  GBP12.8m  +26% 
Annualised recurring revenue   GBP9.8m   GBP9.0m   +9% 
Adjusted EBITDA(3)             GBP7.2m   GBP4.8m   +50% 
Statutory EBITDA               GBP7.1m   GBP4.8m   +48% 
Adjusted EBITDA margin         44.9%     37.6% 
Adjusted profit before 
 tax(4)                        GBP6.3m   GBP3.8m   +65% 
Statutory profit before 
 tax                           GBP5.7m   GBP3.3m   +72% 
Adjusted basic earnings 
 per share(5)                  18.6p     11.5p     +62% 
Statutory basic earnings 
 per share                     16.4p     9.7p      +69% 
Dividend per share             2.6p      2.1p      +24% 
Net cash                       GBP16.5m  GBP7.7m   +114% 
 
 

Financial

-- Revenue up 26% to GBP16.1m (H1 2021: GBP12.8m) reflecting ongoing major implementation projects for new customers and new orders from existing customers

-- Annualised recurring revenue(1) at 31 March 2022 up 9% to GBP9.8m (H1 2021: GBP9.0m), with increased uptake of managed services

   --    Adjusted EBITDA(3) up 50% to GBP7.2m (H1 2021: GBP4.8m) 
   --    Adjusted profit before tax(4) up 65% to GBP6.3m (2021: GBP3.8m) 

-- Total new orders decreased to GBP10.9m (H1 2021: GBP23.6m), however new orders from existing customers increased by 12% to GBP10.9m (H1 2021: GBP9.7m) and the new customer pipeline is up 31% to GBP172m (H1 2021: GBP131m), a new record level

o new major customer signings are expected in H2 and beyond

   --    Strong back order book(2) maintained at GBP39.7m (H1 2021: GBP42.1m) 
   --    Adjusted earnings per share(5) up 62% to 18.6p (2021:  11.5p) 
   --    Net cash up 114% to GBP16.5m (31 March 2021: GBP7.7m) 
   --    Interim dividend up 24% to 2.6p (2021: 2.1p) 

Operational

   --    New team of experienced delivery resources established in Bulgaria 
   --    Major new deals signed with existing customers 
   --    The Board believes that the Group is well-positioned to deliver its full year targets 

Louis Hall, CEO of Cerillion plc, commented:

"Our interim results set new records for revenue, adjusted PBT and net cash across any six-month period, and demonstrate the strong momentum in the business.

"We have made good operational progress in the period as well. The new team we have established in Bulgaria is part of our push to accelerate recruitment and diversify our talent base to meet growing demand.

"We see excellent opportunities for continuing growth and the new customer sales pipeline has grown significantly. Given the Company's progress, and its strong financial and operational position, we continue to view prospects very positively."

(1) Annualised recurring revenue includes annualised support and maintenance, managed services and Cerillion Skyline revenue.

(2) Back order book of GBP39.7m consists of GBP32.7m of sales contracted but not yet recognised at the end of the reporting period plus GBP7.0m of annualised support and maintenance revenue. It is anticipated that 75% of the GBP32.7m of sales contracted but not yet recognised as at the end of the reporting period will be recognised within the next 12 to 18 months.

(3) Adjusted EBITDA is a non-GAAP, Company-specific measure, which is earnings excluding finance income, finance costs, taxes, depreciation, amortisation and share-based payments charges.

(4) Adjusted profit before tax is a non-GAAP, Company-specific measure, which is earnings excluding taxes, amortisation of acquired intangible assets and share-based payments charges.

(5) Adjusted earnings per share is a non-GAAP, Company-specific measure, which is earnings after taxes, excluding amortisation of acquired intangible assets and share-based payments charges divided by the average weighted number of shares in the period.

For further information please contact:

 
Cerillion plc                           c/o KTZ Communications 
 Louis Hall, CEO, Andrew Dickson,        T: 020 3178 6378 
 CFO 
 
Liberum (Nomad and Broker)              T: 020 3100 2000 
Bidhi Bhoma, Cameron Duncan, William 
 Hall 
 
KTZ Communications                      T: 020 3178 6378 
Katie Tzouliadis, Dan Mahoney 
 

About Cerillion

Cerillion is a leading provider of mission critical software for billing, charging and customer relationship management, with a 22-year track record in providing comprehensive revenue and customer management solutions. The Company has around 80 customers across 44 countries, principally serving the telecommunications market.

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

CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S REPORT

Overview

These are strong interim results, with revenue, adjusted PBT and cash all at record highs for any six-month period. Revenue is up by 26% year-on-year to GBP16.1m (H1 2021: GBP12.8m), and annualised recurring revenue at 31 March 2022 was 9% higher than a year ago at GBP9.8m (H1 2021: GBP9.0m). Adjusted profit before tax rose by 65% to GBP6.3m (H1 2021: GBP3.8m). Net cash at the end of March 2022 was up by 114% at GBP16.5m (31 March 2021: GBP7.7m).

These excellent results reflect the major implementation and upgrade projects under way with new customers and strong flows of business with existing customers, as well as an increased baseline of recurring income.

Whilst major new orders were down year-on-year to GBP10.9m, from a H1 2021 high of GBP23.6m, the value of the new customer sales pipeline has increased significantly to GBP172m, up by 31%, and we expect contract closures to come through in the second half and beyond. This reflects the advanced stage of discussions with certain potential new customers although, as ever, precise timings of potential contract closures are hard to predict with certainty. As our existing base of customers grows, the level of new orders from existing customers continues to increase, and rose by 12% to GBP10.9m (31 March 2021: GBP9.7m) in the period. This enabled a strong back-order book to be maintained at GBP39.7m (31 March 2021: GBP42.1m).

Having opened a new office in Sofia, Bulgaria, during the first half, we built a team of experienced delivery resources, hiring 13 consultants. As well as providing us with a presence within the EU, this growing new centre will help us to further diversify our human resource base, enabling us to better manage the inflationary pressures we are experiencing in our UK and India operating bases. In addition to this, whilst the move to remote working due to the COVID-19 pandemic has created some challenges, this change has created more flexibility to source the best people, at the most competitive rates, wherever they may be located.

Looking ahead over the balance of the current financial year, we are very confident of continuing progress, supported by our strong back-order book and new customer sales pipeline.

From a market perspective, we are seeing no let-up in investment in 5G and broadband infrastructure, and we continue to see strong opportunity for Cerillion, derived from the need to monetise those new assets and trickle-down investment into the ancillary systems that we provide.

Financial Overview

Revenue for the six months ended 31 March 2022 increased by 26% to GBP16.1m (H1 2021: GBP12.8m), which reflected both the strong back order book and ongoing major implementation projects, as well as new orders from existing customers.

The mix of revenue was more weighted towards Services compared to the prior period, with revenue from Services as a proportion of total revenue at 63% (H1 2021: 51%), up 57% year-on-year to GBP10.2m (H1 2021: GBP6.5m). Software revenue (from software licence, support and maintenance sales) made up 31% of total revenue (H1 2021: 46%), decreasing by 15% to GBP5.0m (H1 2021: GBP5.8m). This mainly reflected the timing of software licence recognition. Third-party revenue made up 6% of total revenue (H1 2021: 4%), doubling to GBP1.0m (H1 2021: GBP0.5m).

Gross margin for the period remained high at 78.5% (H1 2021: 78.6%). Whilst headcount increased in all regions to support growth, recruitment efforts were focused on building resources in India and in our new office in Bulgaria. This led to an overall reduction in average cost per head (despite inflationary pressures in the UK and India), which benefitted gross margin, offsetting the impact from the change in revenue mix.

Existing customers (those customers acquired at least 12 months before the end of the reporting period) continue to make up a high proportion of the Group's revenue, as is typical, and generated 91% of total revenue in the period (H1 2021: 71%).

Recurring revenue(1) , from support and maintenance and managed service contracts, grew by 9% to GBP4.8m (H1 2021: GBP4.4m) and accounted for 30% of the Group's revenue (H1 2021: 35%). As a result of new customer deployments, support fee increments and an increased uptake of managed services, annualised recurring revenue at the end of March increased by 9% year-on-year to GBP9.8m (31 March 2021: GBP9.0m).

As expected, operating expenses increased in the period, but only marginally, up 4% to GBP7.0m (H1 2021: GBP6.7m). This reflects our close focus on cost control and favourable foreign exchange rates, partly offset by higher travel and marketing costs, as business returned to normal following the lifting of COVID-19 restrictions, and higher sales commissions.

Adjusted earnings before interest, tax, depreciation and amortisation ("EBITDA"), which excludes share-based payments charges, rose by 50% to GBP7.2m (H1 2021: GBP4.8m). Statutory EBITDA increased by 48% to GBP7.1m (H1 2021: GBP4.8m).

Adjusted profit before tax(3) rose by 65% to GBP6.3m (H1 2021: GBP3.8m) and adjusted earnings per share(4) was 62% higher at 18.6p (H1 2021: 11.5p). Statutory profit before tax increased by 72% to GBP5.7m (2021: GBP3.3m), and statutory earnings per share increased by 69% to 16.4p (2021: 9.7p).

The balance sheet remains strong. Net assets rose by 34% to GBP23.0m as at 31 March 2022 (31 March 2021: GBP17.2m).

Cash Flow and Banking

Net cash at 31 March 2022 increased by 114% to GBP16.5m (31 March 2021: GBP7.7m), with no debt in either the current or prior period. Net cash generated from operations in the period rose by 145% to GBP6.5m (H1 2021: GBP2.7m).

Development costs of GBP0.5m were capitalised in the period (H1 2021: GBP0.5m) after investment to further enhance our intellectual property.

Expenditure on fixed assets was GBP0.1m (H1 2021: GBP0.1m).

Free cash generation in the period increased by 184% to GBP5.9m (H1 2021: GBP2.1m), which reflected the higher profit and an overall reduction in working capital, partly offset by higher tax payments. It was utilised to pay the final dividend of GBP1.5m (H1 2021: GBP1.1m) in respect of the year ended 30 September 2021.

Dividend

The Board is pleased to declare an increased interim dividend of 2.6p per share (H1 2021: 2.1p), a 24% rise year-on-year. The interim dividend will become payable on 17 June 2022 to those shareholders on the Company's register as at the close of business on the record date of 27 May 2022 The ex-dividend date is 26 May 2022.

As previously stated, the Board intends to distribute between a third to a half of the Group's free cash flow as dividends each year, subject to the Group's performance and the Board's assessment of the trading environment.

Operational Overview

Demand from the existing customer base was very healthy over the first half, with sales to existing customers up by 12% to GBP10.9m (H1 2021: GBP9.7m). These sales included licence expansions, scope expansions on implementation projects, upgrades, and new managed services agreements. The new customer sales pipeline grew strongly, up 31%, to GBP172m as at 31 March 2022 (31 March 2021: GBP131m), and we expect to close new customer orders in the second half and beyond.

Buoyant sales to existing customers have maintained the back order book at a very healthy level of GBP39.7m at 31 March 2022 (31 March 2021: GBP42.1m). These contracted (but not yet recognised) sales will drive revenues over the coming quarters. It is especially encouraging to see the Group's base of recurring revenue increase. Reflecting the growth in the business and specifically the growth in managed services and support and maintenance, annualised recurring revenue rose by 9% year-on-year to GBP9.8m (H1 2021: GBP9.0m).

The BSS/OSS solutions that we provide remain a core requirement for telecommunications operators and service providers, and substantial investment in 5G and fibre rollout continues to drive investment in replacing, upgrading and improving BSS/OSS solutions, mainly so as to drive more revenue from this network infrastructure investment. We offer all major modules in customer management and experience as well as all major modules in revenue management and monetisation. In order to maintain our attractive competitive positioning, we continue to invest in R&D to improve our product set, providing new features and enhancing existing functionality. We are in the process of investing approximately 10,000 man days in R&D over the year to provide two major software releases. We completed the first, Cerillion 22.1, in the period, releasing it in April. As the latest version of our Enterprise OSS/BSS suite for fixed, mobile, cable and multi-service operators, it provides customers with further capabilities and also launches a new set of out-of-the-box solution configurations, which address discrete telecoms market segments. The second release is well under way.

We have also continued to build the team, bringing on new and experienced talent, and have expanded our staff numbers in both India and London. In addition to this, we established our new skill centre in Sofia, Bulgaria, opened in September 2021, and intend to invest further in the team.

Working patterns remained affected by the global pandemic. In the London, staff returned to the office on two core days each week, with the option to be office-based on additional days where necessary. This combines the benefits of office-based interaction with the efficiency gains derived from working from home, and also recognises that greater flexibility is now a key differentiator in the employment market. In India, where the Group's other main operating base is located, most staff are continuing to work remotely, in line with the trend in that market.

Outlook

The business has continued to make strong progress and remains very well placed in a growing marketplace where our 'productised' approach stands out and the quality, breadth and completeness of our solutions provides us with strong competitive differentiation. In February 2022, we were pleased to announce that we had been included in two major industry reports by Gartner(5) , both considered to be highly authoritative guides for communication service providers. Cerillion was one of only ten companies to be included in both reports, and over 20 companies were assessed for each report.

Looking over the remainder of the financial year, with existing major implementation projects, the healthy back-order book, strong new customer pipeline and advanced new customer contract discussions, Cerillion is well-positioned to achieve its full year targets.

The Company's robust balance sheet, which carries no debt, and the significant increase in recurring income, provides further strong underpinning for future growth. The Board therefore remains confident of growth prospects this year and beyond.

 
Alan Howarth  Louis Hall 
 Chairman      Chief Executive Officer 
 

Notes:

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

(2) Back order book of GBP39.7m consists of GBP32.7m of sales contracted but not yet recognised at the end of the reporting period plus GBP7.0m of annualised support and maintenance revenue. It is anticipated that 75% of the GBP32.7m of sales contracted but not yet recognised as at the end of the reporting period will be recognised within the next 12 to 18 months.

(3) Adjusted profit before tax is a non-GAAP, company-specific measure which is earnings excluding taxes, amortisation of acquired intangible assets and share-based payments charges.

(4) Adjusted earnings per share is a non-GAAP, company-specific measure which is earnings after taxes, excluding share-based payments charges and amortisation of acquired intangible assets divided by the average weighted number of shares in the period.

Gartner Disclaimer:

(5) GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

The industry reports referred to above are Gartner "Market Guide for CSP Customer Management and Experience Solutions" By Analyst(s): Juha Korhonen, Amresh Nandan, Chris Meering, Susan Welsh de Grimaldo (published 31 January 2022), and Gartner "Market Guide for CSP Revenue Management and Monetization Solutions". By Analyst(s): Amresh Nandan, Chris Meering, Jouni Forsman (published 13 October 2021).

Gartner does not endorse any vendor, product or service depicted in our 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.

INTERIM FINANCIAL INFORMATION

Unaudited Consolidated Statement of Comprehensive Income

for the six months ended 31 March 2022

 
GBP                               Consolidated  Consolidated  Consolidated 
                                   Unaudited     Unaudited     Audited 
                                   half year     half year     year to 
                                   to            to            30 Sep 2021 
                                   31 Mar 2022   31 Mar 2021 
Continuing operations 
Revenue                           16,139,723    12,808,391    26,070,815 
Cost of sales                     (3,475,424)   (2,745,730)   (5,662,228) 
Gross profit                      12,664,299    10,062,661    20,408,587 
Operating expenses                (7,017,994)   (6,720,161)   (12,884,572) 
 
Adjusted EBITDA*                  7,248,378     4,819,689     10,515,283 
Depreciation and amortisation     (1,465,237)   (1,459,119)   (2,880,927) 
Share based payment charge        (136,836)     (18,070)      (110,341) 
Operating profit                  5,646,305     3,342,500     7,524,015 
 
Finance costs                     (72,837)      (87,378)      (163,982) 
Finance income                    81,691        33,964        66,810 
 
Adjusted profit before 
 tax**                            6,288,411     3,803,572     8,530,014 
Share based payment charge        (136,836)     (18,070)      (110,341) 
Amortisation of acquired 
 intangibles                      (496,416)     (496,416)     (992,830) 
Profit before tax                 5,655,159     3,289,086     7,426,843 
Taxation                          (802,379)     (422,960)     (999,748) 
Adjusted profit for the 
 period***                        5,486,032     3,380,612     7,530,266 
Share based payment charge        (136,836)     (18,070)      (110,341) 

Amortisation of acquired 
 intangibles                      (496,416)     (496,416)     (992,830) 
Profit for the period             4,852,780     2,866,126     6,427,095 
Other comprehensive income 
Exchange differences on 
 translating foreign operations     4,318         (120,707)     (120,093) 
Total comprehensive profit 
 for the period                     4,857,098     2,745,419     6,307,002 
 

All transactions are attributable to the owners of the parent.

 
                                            H1 2022       H1 2021      FY 2021 
Basic earnings per share from continuing    16.4 pence    9.7 pence    21.8 pence 
 operations 
Diluted earnings per share from             16.4 pence    9.6 pence    21.7 pence 
 continuing operations 
Adjusted basic earnings per share 
 from continuing operations                   18.6 pence    11.5pence    25.5 pence 
*     Adjusted EBITDA is a non-GAAP, Company-specific measure, 
       which is earnings excluding finance income, finance costs, 
       taxes, depreciation, amortisation and share-based payments 
       charge. 
**    Adjusted profit before tax is a non-GAAP, Company-specific 
       measure which is earnings excluding taxes, amortisation 
       of acquired intangible assets and share-based payments 
       charge. 
***   Adjusted profit for the period is a non-GAAP, Company-specific 
       measure which is earnings excluding share-based payments 
       charge and amortisation of acquired intangible assets. 
 
 

Unaudited Condensed Consolidated Statement of Changes in Equity

as at 31 March 2022

 
GBP                         Share     Share       Share     Treasury     Foreign    Retained     Total Equity 
                             capital   premium     option    stock        exchange   earnings 
                                                   reserve                reserve 
 
Balance at 1 October 
 2020 (audited)             147,567   13,318,725  151,619   (375,025)    (46,981)   2,829,984    16,025,889 
Profit for the period       -         -           -         -            -          2,866,126    2,866,126 
Exchange difference 
 on translating foreign 
 operations                 -         -           -         -            (120,707)  -            (120,707) 
Total comprehensive 
 income                     -         -           -         -            (120,707)  2,866,126    2,745,419 
Share option charge         -         -           18,070    -            -          -            18,070 
Purchase of treasury 
 stock                      -         -           -         (512,500)    -          -            (512,500) 
Exercise of share options   -         -           (66,925)  375,000      -          (307,450)    625 
Dividends                   -         -           -         -            -          (1,106,755)  (1,106,755) 
Balance at 31 March 
 2021 (unaudited)           147,567   13,318,725  102,764     (512,525)  (167,688)  4,281,905    17,170,748 
 
Profit for the period       -         -           -         -            -          3,560,969    3,560,969 
Exchange difference 
 on translating foreign 
 operations                 -         -           -         -            614        -            614 
Total comprehensive 
 income                     -         -           -         -            614        3,560,969    3,561,583 
Share option charge         -         -           92,271    -            -          -            92,271 
Purchase of treasury                                        - 
 stock                      -         -           -                      -          -            - 
Exercise of share options   -         -           (66,905)  512,500      -          (444,971)    624 
Dividends                   -         -           -         -            -          (619,783)    (619,783) 
Balance at 30 September 
 2021 (audited)             147,567   13,318,725  128,130   (25)         (167,074)  6,778,120    20,205,443 
Profit for the period       -         -           -         -            -          4,852,780    4,852,780 
Exchange difference 
 on translating foreign 
 operations                 -         -           -         -            4,318      -            4,318 
Total comprehensive 
 income                     -         -           -         -            4,318      4,852,780    4,857,098 
Share option charge         -         -           136,836   -            -          -            136,836 
Purchase of treasury 
 stock                      -         -           -         (827,424)    -          -            (827,424) 
Exercise of share options   -         -           (45,548)  729,847      -          (576,596)    107,703 
Dividends                   -         -           -         -            -          (1,475,674)  (1,475,674) 
Balance at 31 March 
 2022 (unaudited)           147,567   13,318,725  219,418     (97,602)   (162,756)  9,578,630    23,003,982 
 

Unaudited Condensed Consolidated Balance Sheet

as at 31 March 2022

 
GBP                                          Consolidated  Consolidated  Consolidated 
                                  Unaudited   Unaudited     Unaudited     Audited 
                                  Note        31 Mar 2022   31 Mar 2021   30 Sep 2021 
Assets 
Non-current 
Goodwill                                     2,053,141     2,053,141     2,053,141 
Other intangible assets                      3,097,137     4,001,157     3,571,787 
Property, plant and equipment                677,962       711,687       758,670 
Right-of-use assets                          3,366,921     4,044,525     3,705,723 
Other receivables               5            2,681,008     1,616,440     2,015,422 
Deferred tax assets                          224,017       143,885       209,211 
                                             12,100,186    12,570,835    12,313,954 
 
Current assets 
Trade receivables                            1,744,202     7,541,911     1,697,958 
Other receivables               5            9,574,256     7,419,335     8,480,670 
Cash and cash equivalents                    16,514,236    7,709,248     13,174,471 
                                             27,832,694    22,670,494    23,353,099 
 
Total assets                                 39,932,880    35,241,329    35,667,053 
 
Equity and liabilities 
Shareholders' equity 
Share capital                                147,567       147,567       147,567 
Share premium account                        13,318,725    13,318,725    13,318,725 
Treasury stock                               (97,602)      (512,525)     (25) 
Foreign exchange reserve                     (162,756)     (167,688)     (167,074) 
Share option reserve                         219,418       102,764       128,130 
Retained profit                              9,578,630     4,281,905     6,778,120 
Total Equity                                 23,003,982    17,170,748    20,205,443 
 
Liabilities 
Non-current 
Other payables                               427,708       -             394,850 
Deferred tax liabilities                     767,446       608,395       861,765 
Lease liabilities                            3,459,908     4,266,993     3,866,352 
                                             4,655,062     4,875,388     5,122,967 
 
Current liabilities 
Trade payables                               384,893       1,089,645     490,055 
Other payables                  5            11,888,943    12,105,548    9,848,588 
Borrowings - current                         -             -             - 
                                             12,273,836    13,195,193    10,338,643 
 
Total equity and liabilities                 39,932,880    35,241,329    35,667,053 
 

Unaudited Condensed Consolidated Cash Flow Statement

for the six months ended 31 March 2022

 
GBP                                       Consolidated  Consolidated  Consolidated 
                                           Unaudited     Unaudited     Audited 
                                           half year     half year     year to 
                                           to 31 Mar     to            30 Sep 2021 
                                           2022          31 Mar 2021 
Operating activities 
Reconciliation of profit to operating 
 cash flows 
Profit for the period                     4,852,780     2,866,126     6,427,095 
Add back: 
Taxation                                  802,379       422,960       999,748 
Depreciation                              504,923       500,613       1,007,265 
Amortisation and impairment               960,314       958,506       1,873,661 
Share option charge                       136,836       18,070        110,341 
Finance costs                             72,837        87,378        163,982 
Finance income                            (81,691)      (33,964)      (66,810) 
                                          7,248,378     4,819,689     10,515,282 
Increase in trade and other receivables   (1,805,416)   (4,531,431)   (238,364) 
Increase/(decrease) in trade and 
 other creditors                          2,465,299     2,672,615     (84,435) 
Cash from operations                      7,908,261     2,960,873     10,192,483 
Finance costs                             (72,837)      (87,378)      (163,982) 
Finance income                            81,691        1,464         66,810 
Tax paid                                  (1,433,596)   (223,612)     (293,076) 
Net cash generated from operating 
 activities                               6,483,519     2,651,347     9,802,235 
 
Investing activities 
Capitalisation of development 
 costs                                    (485,664)     (484,428)     (970,212) 
Purchase of property, plant and 
 equipment                                (85,473)      (87,624)      (301,686) 
Net cash used in investing activities     (571,137)     (572,052)     (1,271,898) 
 
Financing activities 
Borrowings repaid                         -             (609,359)     (609,359) 
Purchase of treasury stock                (827,424)     (512,500)     (512,500) 
Receipts from exercise of share 

 options                                  107,703       625           1,249 
Principal elements of finance 
 leases                                   (400,253)     (382,350)     (764,416) 
Dividends paid                            (1,475,674)   (1,106,755)   (1,726,538) 
Net cash used in financing activities     (2,595,648)   (2,610,339)   (3,611,564) 
 
Net increase/(decrease) in cash 
 and cash equivalents                     3,316,734     (531,044)     4,918,773 
Translation differences                   23,031        (71,575)      (56,169) 
Cash and cash equivalents at beginning 
 of period                                13,174,471    8,311,867     8,311,867 
Cash and cash equivalents at end 
 of period                                16,514,236    7,709,248     13,174,471 
 

Unaudited Notes

   1.    Basis of Preparation and Accounting Policies 

The condensed financial information is unaudited and was approved by the Board of Directors on 6 May 2022.

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 25 Bedford Street, London, WC2E 9ES. The interim financial information for the six months ended 31 March 2022 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 2022 has been prepared under the historical cost convention.

The interim financial information for the six months ended 31 March 2022 does not constitute statutory accounts within the meaning of section 434 of the Companies Act. Statutory accounts for the year ended 30 September 2021 have been delivered to the Registrar of Companies. These accounts contain an unqualified audit report and did not contain a statement under the Companies Act 2006 regarding matters which are required to be noted by exception.

The preparation of the interim financial information for the six months ended 31 March 2022 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. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the adoption of new and amended standards which have no material impact on the accounting policies, financial position or performance of the Group.

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 2022 . 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 2022. 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.    Adjusted earnings 

EBITDA, profit before tax, profit for the period and earnings per share have been adjusted to take account of GBP136,836 (6 months to 31 March 2021 GBP18,070) relating to P&L charges in respect of the Company's share based long term incentive plan. The profit before tax, profit for the period and earnings per share have also been adjusted to take account of the amortisation of acquired intangibles of GBP496,416 (6 months to 31 March 2021 GBP496,416).

   5.    Other receivables and other payables 
 
                                       Unaudited     Unaudited   Audited 
                                        31 Mar 2022   31 Mar      30 Sep 
                                        GBP           2021        2021 
                                                      GBP         GBP 
Other receivables - non-current 
Amounts recoverable on contracts       2,611,053     1,616,440   1,945,671 
Other receivables                      69,955        -           69,751 
                                       2,681,008     1,616,440   2,015,422 
Other receivables - current 
Amounts recoverable on contracts       8,709,319     6,513,985   7,763,748 
 Prepayments                            711,643       542,615     480,941 
Other receivables                      153,294       362,735     235,981 
                                       9,574,256     7,419,335   8,480,670 
Other payables 
Taxation                               276,446       466,000     799,160 
Other taxation and social 
 security                              420,476       274,296     421,847 
Pension                                48,579        44,319      46,383 
Accruals                               2,781,213     1,740,393   2,339,143 
 Deferred income                        6,952,966     8,153,878   4,775,174 
Lease liability                        953,901       929,135     947,710 
Other payables                         455,362       497,527     519,171 
                                       11,888,943    12,105,548  9,848,588 
 
   6.    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.

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(END) Dow Jones Newswires

May 09, 2022 13:09 ET (17:09 GMT)