Cerillion
CER · AIM · Technology · mcap £204m · 682.0p
Cerillion sells billing, customer management and operations software (BSS/OSS) to telecom operators, mostly on multi-year contracts. It earns licence, subscription, maintenance and services revenue from customers worldwide.
The case for
- Record back-order book of £82.1m at H1 FY26, nearly double the earlier £50.2m, gives revenue visibility. 1 Jun 2026
- Net cash of £32.5m and EBITDA margins around 50% in FY25 show a profitable, cash-generating business. 24 Nov 2025 1 Jun 2026
- Omantel, at £42.5m over five years, is the largest contract ever, and wins in 2025 reached a record £47.6m. 8 Jan 2026 23 Oct 2025
- Earlier results beat forecasts, and the dividend has risen each year (13.2p for FY24). 20 Nov 2023 18 Nov 2024
The case against
- FY26 revenue guidance of £46m-£48m is well below £52.8m consensus, and margin is guided down to 43%-45%. 14 Sep 2026
- H1 FY26 revenue fell 14% and adjusted EBITDA fell to £6.2m from £10.0m. Revenue is lumpy and depends on contract timing. 1 Jun 2026
- Management had said it was on track for consensus in June 2026, then cut guidance in September. 1 Jun 2026 14 Sep 2026
- The CEO sold about 10% of the company in 2025 and the CFO is leaving, adding uncertainty. 12 Jun 2025 28 Jan 2026
Both sides use only facts from the company's announcements · not investment advice
Company filings. Not investment advice.