Cerillion (CER) H1 2025 earnings summary

Executive summary

• Revenue and earnings for H1 2024/2025 were down 7% year-over-year due to timing of software/license renewals, with most expected in H2, supporting confidence in meeting full-year growth and earnings forecasts.

• Major new contracts, including an $11.4M deal in Armenia and an £8M European services agreement, are set to drive significant H2 revenue, with the back order book up 23% year-over-year post-period end.

• The business model focuses on off-the-shelf, productized software for telecoms, differentiating from competitors' bespoke solutions and supporting global expansion.

• The board remains confident in meeting full-year consensus expectations, supported by a strong pipeline and robust balance sheet.

Financial highlights

• Total revenue fell 7% year-over-year to £20.9M, but recurring revenue rose 8% to £8.2M.

• Adjusted EBITDA margin remained strong at 47.7% despite lower license/software revenue.

• Gross margin slightly increased to 80.6% from 80.4% year-over-year.

• Net cash position rose 17% to £31.2M, with no debt on the balance sheet.

• Interim dividend per share increased by 20% to 4.8p.

Outlook and guidance

• Confident in achieving around 12% revenue growth and meeting full-year earnings forecasts, with H2 expected to be significantly stronger.

• New customer pipeline is up 3% year-over-year to £261M, with further traction expected in H2.

• Not dependent on major new logo wins for FY2025 targets; new wins will support growth into next year.

• Ambition remains to double revenue within three to five years.

• Long-term prospects viewed positively, with continued investment in SaaS and product innovation.