Cerillion plc – Singer analyst hails growth in revenue, PBT, cash and customer demand (LON:CER)
DirectorsTalk sat down with Harold Evans, Principal Research Analyst, TMT at Singer Capital Markets for his insight. Harold noted:
“Cerillion’s FYSept22 update shows continued strong progress as revenue is expected to be ‘slightly ahead’, implying consensus growth of around 24% to around £32.3m, while the PBT is “materially ahead” (vs: £10.1m) and therefore likely closer to Singers’ estimate of £11.7m. This suggests underlying PBT growth of 22% (PBT margin around 34%) A net cash of £20m is also ahead and therefore implies around £10m FCF, or a cash conversion of 91%.
Prospects for Cerillion also look good, as although no backlog numbers are given, it is expected to be up year-on-year, benefiting significantly from July’s record win.
Cerillion also refers to a dynamic pipeline, implying that it has yet to witness a macro slowdown. Clearly encouraging and highlighting how its clients are investing in non-discretionary, long-term projects…and what’s more, if that were to change, it could even benefit Cerillion, accelerating the industry’s transition to software packages ( best quality price report).
The Board of Directors intends to announce the full year results at the end of November 2022 and will contain a further update on pending transactions.
Telecom solutions provider, Cerillion plc( LON:CER) has established a reputation in the global telecommunications market as a leading provider of carrier-class enterprise billing and CRM software, supporting fixed, mobile, broadband and TV communications service providers .