Cerillion PLC (LSE: CER) set to achieve FY24 guidance as order book grows

3 min read | May 21, 2024 04:56 AM AEST | By Team Kalkine

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Cerillion PLC (LSE: CER) set to achieve FY24 guidance as order book grows — Image source: shutterstock

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Highlights

In H1 FY24, CER posted around 10% YoY growth in revenue

The company increased its interim dividend per share by around 21.2% YoY

Valued at an initial USD 11.1 mn, CER has inked a significant new contract in Southern Africa

Cerillion PLC (LSE: CER) is an FTSE AIM 100 index-listed information technology company. It provides billing, charging, and CRM solutions to the finance, telecoms and utilities sectors.

In the first half of FY24 (H1 FY24), CER posted a year-over-year (YoY) growth of around 9.8% in revenue and approximately a 20.9% YoY increase in statutory profit before tax. The growth was attributed to continuing major project implementations for new customers and new orders from existing customers.

Further, the company increased its interim dividend per share by around 21.2% YoY, and its net cash has improved by around 12.7% YoY in the same reporting period.

Additionally, the company boasted a higher current ratio of 3.11x in H1 FY24, compared to the industry median of 1.42x, and a lower debt-equity ratio of 0.05x compared to the industry median of 0.19x.

Recent business update

The company recently announced securing a significant new contract valued at an initial USD 11.1 million from a prominent provider of connectivity solutions in Southern Africa. Additionally, CER has declared an interim dividend of 4 pence per share, scheduled for payment on June 21, 2024, with the ex-dividend date slated for May 30, 2024.

Company outlook

CER secured a significant five-year deal valued at €12.4 million with a leading European Tier-1 telco, covering both fixed and mobile services. Additionally, the company plans to sustain its growth trajectory fuelled by a burgeoning sales pipeline and rising demand for SaaS solutions facilitating telcos' digital transformation. Bolstered by an enhanced back-order book and a new business pipeline, CER is poised to meet its FY24 objectives effectively.

Top 10 shareholders

The top 10 shareholders of Cerillion collectively hold ~68.69% of the total stake in the company. Hall (Louis Tancred) holds maximum number of shares in the company with ~30.48% shareholding, followed by Gresham House Asset Management Limited with ~9.62% shareholding, as depicted in the chart below:

Stock performance

The stock price of CER has witnessed a growth of ~1.36% in the last one month and over the last 6 months, it has increased by ~15.59%. The stock’s 52-week low and high stand at GBX 980.00 & GBX 1,680.00, respectively. Currently, it is trading higher than the average of its 52-week high-low.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 20 May 2024. The reference data in this report has been partly sourced from EODHD/Others.

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