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Highlights

  • CER’s H1FY25 recurring revenue rose by 7.9% YoY to GBP 8.20 million
  • The company declared an interim dividend of GBX 4.80 per share on 19 May 2025, marking a 20% YoY increase
  • Management expects decent H2FY25 performance from licence renewals and new contract recognition

Cerillion PLC (LSE: CER) develops and supplies telecommunications billing, charging, and customer relationship management (CRM) software and equipment.

In the first half of the financial year 2025 (H1FY25), the company’s recurring revenue increased by 7.9% year-over-year (YoY) to GBP 8.20 million, driven by improved support and maintenance income and a shift in customer demand towards SaaS and managed service offerings. Net cash rose by 17.3% YoY to GBP 31.20 million, supported by  cash conversion, free cash flow of GBP 5.9 million, and disciplined cost controls. However, adjusted EBITDA fell by 9.1% YoY to GBP 10.00 million due to lower revenue recognition in H1 from licence renewals, though the EBITDA margin remained high at 47.7% in H1FY25.

Recent Business Update

In January 2025, Cerillion signed a five-year, high-value agreement worth USD 11.4 million with a national telecom operator in Armenia, covering over 1 million users across fixed, mobile, broadband, and TV services.

The company declared an interim dividend of GBX 4.80 per share on 19 May 2025, marking a 20% YoY increase, reflecting the company’s stable profitability,  cash flow visibility, and confidence in sustained business momentum heading into the second half of FY25.

Company Outlook

Cerillion’s new customer sales pipeline rose 3% YoY to GBP 261 million, and together with an expanding back-order book, supports confidence in meeting full-year revenue and profit targets. With no debt and net cash of GBP 31.2 million, the company is well-positioned to invest in R&D, pursue strategic contracts, and deliver shareholder returns while maintaining financial stability.

Management expects decent performance in H2FY25, driven by licence renewals and revenue recognition from recently signed contracts, including the Armenia agreement and a European client migration project.

Top 10 Shareholders

 The top 10 shareholders of Cerillion collectively hold approximately 60.43% of the company’s total shares. The largest stakes are held by Hall (Louis Tancred) and Gresham House Asset Management Limited, with holdings of around 20.15% and 8.72%, respectively.

Stock Information

The stock price of CER has fallen by approximately 15.25% over the past month and 13.29% over the past six months. Over the last 52 weeks, the stock has traded between a low of GBX 1,200.00 and a high of GBX 1,970.00, closing at GBX 1,500 on 20 June 2025.

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 June 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.