Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Cerillion CEO, Louis Hall and CFO, Andrew Dickson, present interim results for the six months ended 31 March 2022. Cerillion plc, is a billing, charging and customer relationship management software solutions provider.
Watch the video here: https://www.piworld.co.uk/company-videos/cerillion-cer-interim-results-presentation-may-2022/
Or listen to the podcast here: https://piworld.podbean.com/e/cerillion-cer-interim-results-presentation-may-2022/
Que?
...and the price FALLS!! Just what were they expecting?! Lol.
"Financial
· Revenue up 26% to £16.1m (H1 2021: £12.8m) reflecting ongoing major implementation projects for new customers and new orders from existing customers
· Annualised recurring revenue1 at 31 March 2022 up 9% to £9.8m (H1 2021: £9.0m), with increased uptake of managed services
· Adjusted EBITDA3 up 50% to £7.2m (H1 2021: £4.8m)
· Adjusted profit before tax4 up 65% to £6.3m (2021: £3.8m)
· Total new orders decreased to £10.9m (H1 2021: £23.6m), however new orders from existing customers increased by 12% to £10.9m (H1 2021: £9.7m) and the new customer pipeline is up 31% to £172m (H1 2021: £131m), a new record level
o new major customer signings are expected in H2 and beyond
· Strong back order book2 maintained at £39.7m (H1 2021: £42.1m)
· Adjusted earnings per share5 up 62% to 18.6p (2021: 11.5p)
· Net cash up 114% to £16.5m (31 March 2021: £7.7m)
· Interim dividend up 24% to 2.6p (2021: 2.1p)"
Louis Hall, Co-Founder & CEO and Andrew Dickson, CFO present Cerillion interim results for the period ended 31st March 2022.
Monday, 16 May, 2:00pm
Join us here: https://bit.ly/CER_webinar
Haven't seen movement like this for sometime ... Any Ideas Why
Fantastic - as expected.
The new bit of course is the updated Outlook, as follows:
"Outlook
The Company delivered a record set of results, and our products are gaining greater visibility in the marketplace. In addition, Cerillion's financial position is very strong, supported by a growing base of recurring income, increased cash flows, and no debt.
We believe that Cerillion remains well-positioned to deliver another strong performance over the new financial year. The back-order book stands at a record level, providing strong visibility of revenues, and the pipeline of new business is strong. In addition to these strong organic growth prospects, we also continue to assess a range of inorganic growth opportunities as they arise.
The market backdrop is favourable, with increasing investment by telecom companies in their networks and in digital transformation, and this long-term trend should continue to benefit Cerillion's growth prospects."
Liberum Capital 3rd Nov raises target price to 925p
I'm no good at software, but this looks impressive. I particularly like the last paragraph, which indicates to me as someone "no good at software" perhaps why our software is so popular: regularly up-to-dated, coverall software that does the job and takes the worry out of constantly having to search out and evaluate new systems.
And it does seem to be popular: that was a stonking last update. Why oh why has nobody noticed?! :)
Last paragraph: "Cerillion's pure product model and six-monthly major releases already deliver clear benefits to its customers - one product for all service types, faster and lower risk implementation, earlier access to new features and lower total cost of ownership - and this new release maintains the Company's positioning at the forefront of its market."
revenue for the financial year is expected to be slightly ahead of current consensus market forecasts. However, as a result of a higher proportion of term licence sales than anticipated, adjusted profit before tax is expected to be significantly higher than current consensus market forecasts. Net cash at 30 September 2021 is also anticipated to close very strongly, ahead of projections, at approximately £13.0m (30 September 2020: £7.7m).
Daytime presentation from CEO and CFO tomorrow lunchtime
https://www.sharesmagazine.co.uk/events/event/shares-investor-webinar-150921
Investors Chronicle runs regular screens, and this is for top quality AIM/small cap shares. Cerillion was one of just 5 that have passed this year, and there is a long write up just on Cerillion.
Copying this with slight practical alterations from what Rivaldo posted on MWE [because I'm lazy! - plus he is far and away more knowledgeable than I am]:
"To summarise for non-subscribers, Algy Hall has run a screen covering the entire FTSE small cap index and AIM to find which companies pass all the stringent tests below to qualify as a "High Quality" share.
Only 5 companies passed. CER are one of them (RNWH and MWE, which I also hold, are others):
Https://www.investorschronicle.co.uk/ideas/2021/08/26/5-high-quality-aim-shares/
"The full screening criteria:
PE ratio above bottom fifth and below top fifth of all stocks screened.
A genuine value (GV) ratio below the top quarter of stocks screened.
GV ratio = (enterprise value/operating profit)/(forecast EPS growth + dividend
yield)
Earnings growth forecast in each of the next two financial years.
Interest cover of five times or more.
Positive free cash flow.
Market capitalisation over £20m.
A top-quarter return on equity (RoE) in each of the past three years.
A top-quarter operating margin in each of the past three years.
Operating profit growth over the past three years"
Astonishing that such a quality company, with such an sp record, has such a small following here.
Market was looking for an excuse to take profit after a stellar run. In the grand scheme of things this is nothing!
Cheers Beamer. Bought these at around 450 and the been going up day after day. Probably just watch the price movement today and monitor. What volume were the sells?
sells from 6th July responsible for the drop and spiral affect? Low issue/free float causes dramatic shifts in either direction
1 year target price upgraded to 1229.33p
Latest SP predictions from Walletinvestor, 14 day target 963.239p 1 year target 1058.75p long term 2194.660p
share rating strong buy.
Well I've 2x bagged on this baby now... crikey what a ride.
Potentially fully valued as it has rerated to peers level - market expects very high quality earnings growth going forward. Keep the faith!!
Walletinvestor has a target price over the next 12 months of 1004.640p
Another fantastic RNS. "Cerillion has experienced its strongest ever six-month trading period, exceeding management expectations. Revenue for the first half ended 31 March 2021 is expected to total approximately £12.8m, a 25% increase on the same period last year (H1 2020: £10.2m) and adjusted EBITDA is expected to be approximately £4.8m, a 77% rise on the comparative period last year" et al.
The top 10 holders, including just one private individual, hold over 94% of shares. Keeping it nicely under wraps!
Cherokee, do you need new boots? :)
Forgot to mention that at $18.4 million this is the largest contract ever for Cerillion. The previous record was £11.2 million, around $15.4 million, set only last September. That’s a good jump up, though it is over a longer time period. The long time period is good!
This is going places. Record after record.
From the full year report in September. ' It is anticipated that the remaining debt outstanding at year-end will be repaid during FY 2021.' This will add 0.6m or about 20% to future years profits
Great contract - another. Like Cherokee I can't believe this is so quiet. Maybe with P/E at 23 it seems expensive, but it's on the cheap side for its industry, acc Stockop*dia. Stocko ranks companies on Quality, Value and Momentum, and gives a combined rating out of 100. While they recommend combining all 3 factors ['QVR'], actually if you compare QVR with just Q and M the latter does better over the longest time frames they give. I bought after a big intraday jump in September, but I'm still well up.
"This contract, together with a smaller £2.7m extension recently secured with an existing customer in Europe, is anticipated to result in the Company exceeding current management expectations for pre-tax profit in the current financial year ending 30 September 2021.
.... The new customer is the main telecoms provider in its national market, supplying fixed, pre and post-paid mobile, and broadband services to both B2B and B2C customers."
Like it.
Just to mention that Cerillion will be one of ten companies featured in the March results round up in the MelloMonday show tonight. It will be a really packed five hour show but here are the timings....
Programme for the evening
5.00 pm Introduction to our Mello Roadshow
5.05 pm Alun @MrContrarian reviews the Mello BASH companies
5.10 pm Company presentation by Judges Scientific
5.40 pm How to join corporate fundraisings with Primary Bid
6.00 pm Company presentation by Filta Group
6.30 pm Leon Boros interviews Peter Harrison from Bioventix
7.00 pm Company presentation by Digital Box
7.30 pm A March results round up with Paul Scott, Gordon @glasshalfull & Alan Charlton
8.00 pm Company presentation by Get Busy
8.30 pm New IPO presentation by Parsley Box introduced by James Deal, Primary Bid
8.50 pm Mello BASH with Alan Charlton, Alex Schlich, Richard Crow (@RebelHQ) and Kevin Taylor
If you have not been before the webpage is here Https://melloevents.com/mellomonday-29th-march/ Do use this code for a half price ticket LSE50OFF
See RNS... Substantial contracts see RNS
Great contract win recently.
Can't believe there isn't more hype for this company
1. Growing at a clip
2. Loads of cash
3. Disruptive, innovative technology
4. Impressive management
5. Institutionally backed
Fill yer boots!