Cerillion Demonstrates Resilience with Solid Recurring Revenue and Growing Backlog

PUBLISHED: 19 May 2025 @ 18:05 | Comments (0) | More info about Fiona Craig

Cerillion plc (LSE:CER) has reported its financial results for the first half of the fiscal year, revealing a 7% year-on-year dip in revenue to £20.9 million. The decline was attributed to the timing of customer contract renewals, many of which are now expected to contribute in the second half. Despite the short-term revenue shift, the company’s fundamentals remain strong.

Recurring revenue saw a healthy 8% increase, and Cerillion maintained an impressive adjusted EBITDA margin of 47.7%. Its back-order book expanded by 23% to reach £56.5 million by the end of April 2025, driven by new business wins—including a notable five-year agreement with a telecoms operator in Armenia.

With a strong sales pipeline and consistent cash flow generation, Cerillion reiterated confidence in achieving its full-year financial goals. The company’s strategic emphasis on SaaS-based solutions and long-term customer relationships continues to support its growth trajectory, even amid a volatile global economic environment.

Outlook and Valuation

While Cerillion’s strong operational metrics and recent contract wins support an optimistic growth outlook, investors should be mindful of mixed technical signals and a relatively high valuation. Nevertheless, the company remains fundamentally well-positioned for sustained expansion.

About Cerillion plc

Cerillion is a London-headquartered software firm specializing in mission-critical billing, charging, and CRM systems for the telecommunications industry. The company also serves clients in the utilities and financial services sectors. With over 25 years of experience and a global footprint—including operations in India and Bulgaria and sales representation across the USA, Singapore, and Australia—Cerillion supports around 75 deployments across 45 countries.

Average Daily Trading Volume: 68,591
Technical Sentiment: Strong Buy
Market Capitalization: £541.3 million

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