Cerillion (CER) H2 2024 earnings summary

Executive summary

• Achieved record highs in key financial KPIs, with adjusted PBT up 18% and new orders up 21% to £38.1 million, driven by two major new customer wins in Ireland and Southern Africa.

• Revenue grew 14% year-over-year to £43.8 million, with recurring revenue up to £15.5 million and a strong global customer base, especially in Europe.

• Customer base remains highly sticky, with most customers retained for over five years and 85% of revenue from existing customers.

Financial highlights

• Revenue increased 14% year-over-year to £43.8 million, with a compound annual growth rate of 18% since 2019.

• Adjusted PBT rose 18% to £19.8 million; adjusted EBITDA margin remained high at 47.4%.

• Gross margin improved by 1.8 percentage points to 80.5%, driven by a high proportion of license revenue and operational efficiencies.

• Net cash increased 21% to £29.9 million; free cash flow of £9.7 million exceeded dividends and lease payments.

• Dividend per share increased to £13.2.

Outlook and guidance

• New customer sales pipeline grew 8% to a record £262 million, indicating strong future growth potential.

• Guidance for adjusted EBITDA margin is 40%-45% in the short term, slightly lower than recent years due to expected lower license revenue.

• Medium to long-term margin expected to rise with more large contract wins and higher software revenue.