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Cerillion profits tumble despite higher revenues
Software solutions provider Cerillion saw profits tumble in its last trading year, despite improving revenues and scoring a major contract win in the form of European telecommunications operator Sure.
Cerillion's revenues moved ahead 11% to £8.4m but pre-tax profits tumbled 34% to £472,231.
The AIM-quoted group's existing customers continued to generate a high proportion of its total revenues, up to 80% from 79% a year earlier, and recurring revenue rose by 15% to £2.5m.
Adjusted EBITDA expanded 6% to £1.6m.
On the other hand though, earnings per share dropped from 2.45p to 2.19p and new order wins declined 15% to £7.9m, including the £5m win from Sure, a member of the Batelco Group and a provider of fixed, mobile and data telecommunications services to consumer and corporate customers in Guernsey, Jersey and the Isle of Man.
As of 31 March 2018, net cash had more than doubled to £2.5m, and debt had improved 21% to £3.2m.
Louis Hall, chief executive of Cerillion, said, "Half year results show increased revenue, and profitability in line with management expectations. New orders were strong at £7.9m, and included a major new contract with Sure, a European telecommunications operator."
"Looking ahead, our strong back order book helps to support revenue visibility, and the number and quality of the tender processes we are currently engaged in is very encouraging at this point in the year, and will underpin continuing progress towards the Company's financial goals. We look forward to the future with confidence and believe that prospects for long-term growth remain very positive," Hall added.
As of 1110 BST, Cerillion shares had dropped 11.54% to 126.50p.