(Alliance News) - Cerillion PLC on Monday swung to profit for the first half of financial 2020, upped its dividend by 9%, and said that it has not experienced any significant slowdown in activity due to the Covid-19 pandemic.
For the six months to March 31, the software company recorded a pretax profit of GBP1.2 million versus a pretax loss of GBP745,295 a year ago.
Revenue surged 46% year-on-year to GBP10.2 million from GBP7.0 million. Services income was up 61% to GBP6.1 million, accounting for 59% of total revenue. Software income increased by 25% to GBP3.3 million, making up 32% of revenue.
"These excellent results were mainly fuelled by the four major new contracts won in 2019 and a further major win in the first half of the current financial year. In addition, demand from existing customers over the first half was strong and helped to drive the back order book up to a record GBP24.2 million," the company explained. Order book in first half of 2019 amounted to GBP15.4 million.
Cerillion, which develops billing, charging and customer relationship management software, raised its interim dividend by 9% to 1.75 pence per share from 1.6p a year ago.
Chief Executive Officer Louis Hall said: "Looking further forward, while the coronavirus pandemic has caused fundamental economic and social disruption, we remain cautiously optimistic for Cerillion's prospects. Our new business pipeline is strong and sales processes have continued to be active through the current crisis to date, putting the company in a good position for further progress".
At March end, the company had net cash of GBP4.8 million and its new business pipeline was 19% higher year-on-year.
Cerillion believes it remains well-positioned to deliver on its financial 2020 targets.
Shares in the company were up 8.9% at 295.00p each in London on Monday.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Cerillion (CER)