TIDMCER
RNS Number : 7271Y
Cerillion PLC
17 May 2021
17 May 2021
AIM: CER
Cerillion plc
("Cerillion", the "Company" or the "Group")
Interim results
for the six months ended 31 March 2021
Cerillion plc, the billing, charging and customer relationship
management software solutions provider, today issues its interim
results for the six months ended 31 March 2021.
Record Six-month Period and Continuing Strong Prospects
Highlights
Financial
-- Record performance for new orders in H1, up 148% to GBP23.6m
(2020: GBP9.5m):
* total new customer sales amounted to GBP18.1m,
including largest ever contract win, a $18.4m
agreement with Telesur, the leading
telecommunications provider in Suriname, Latin
America, signed at the end of March 2021
* major channel partner relationship yielded its first
contract in early March 2021, worth GBP5.0m
-- Revenue up 26% to GBP12.8m (2020: GBP10.2m):
* reflects scale of implementations under way,
underpinned by major new contract wins
-- Annualised recurring revenue(1) up 43% to GBP9.0m (2020:
GBP6.3m) at 31 March 2021
-- Back order book(2) up 74% at 31 March 2021 to a record
GBP42.1m (2020: GBP24.2m)
-- Adjusted EBITDA(3) up 77% to GBP4.8m (2020: GBP2.7m)
-- Adjusted profit before tax(4) up 124% to GBP3.8m (2020:
GBP1.7m)
-- Adjusted earnings per share(5) up 105% to 11.5p (2020:
5.6p)
-- Net cash up 60% to GBP7.7m at 31 March 2021 (31 March 2020:
GBP4.8m)
-- Interim dividend up 20% to 2.10p (2020: 1.75p)
Operational
-- Continued use of remote working and on-line collaboration
tools to ensure staff safety in the face of the ongoing
coronavirus crisis
-- Major new contracts in implementation in H1 included:
* GBP11.2m contract won in September 2020 with a major
UK provider of enterprise connectivity solutions
* GBP5.0m contract won in March 2021 with a
publicly-owned network operator in the Middle East
via a major channel partnership
* $18.4m contract won in March 2021 with Telesur in
Suriname, Latin America
-- New business pipeline is 9% higher year-on-year at GBP130.8m
at period end, even after recent new customer wins
-- The Board believes that the Group is well-positioned to
deliver its full year targets
Louis Hall, CEO of Cerillion plc, commented:
"These record interim results, with all major performance
measures moving to new highs, demonstrate Cerillion's continued
upward momentum.
"Over the last three quarters, we have signed two of the largest
contracts in the Company's history. This reflects the strength of
our solutions and services capability, our increasing market
profile, and the significant investments being made by
telecommunication providers in infrastructure and systems.
"Recent new contract wins have lifted our back order book to a
new record level, and we therefore remain very confident of
continuing revenue and earnings progression. The strong sales
pipeline also provides further opportunities to accelerate
Cerillion's growth."
(1) Annualised recurring revenue includes annualised support and
maintenance, managed service and Cerillion Skyline revenue.
(2) Back order book consists of GBP35.6m of sales contracted but
not yet recognised at the end of the reporting period plus GBP6.5m
of annualised support and maintenance revenue. It is anticipated
that 75% of the GBP35.6m of sales contracted but not yet recognised
as at the end of the reporting period will be recognised within the
next 12 to 24 months.
(3) Adjusted EBITDA is a non-GAAP, company-specific measure,
which is earnings excluding finance income, finance costs, taxes,
depreciation, amortisation and share-based payments charges.
(4) Adjusted profit before tax is a non-GAAP, company-specific
measure, which is earnings excluding taxes, amortisation of
acquired intangible assets and share-based payments charges.
(5) Adjusted earnings per share is a non-GAAP, company-specific
measure which is earnings after taxes, excluding amortisation of
acquired intangible assets and share-based payments charges.
For further information please contact:
Cerillion plc c/o KTZ Communications
Louis Hall, CEO, Oliver Gilchrist, T: 020 3178 6378
CFO
Liberum (Nomad and Broker) T: 020 7408 4090
Bidhi Bhoma, Euan Brown, Richard
Bootle, William Hall
KTZ Communications T: 020 3178 6378
Katie Tzouliadis, Dan Mahoney
About Cerillion
Cerillion is a leading provider of mission critical software for
billing, charging and customer relationship management, with a
21-year track record in providing comprehensive revenue and
customer management solutions. The Company has 90 customers across
44 countries, principally serving the telecommunications
market.
The Company is headquartered in London and also has operations
in Pune, Miami and Sydney.
CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S REPORT
Overview
We are delighted to report record interim results, which reflect
major implementation and upgrade projects under way with new and
existing customers, as well as an increased baseline of recurring
income. The Company has recorded new highs across all key
performance indicators.
Revenue for the first six months of the financial year was the
highest in a six-month period, up by 26% year-on-year to GBP12.8m
(H1 2020: GBP10.2m), and annualised recurring revenue at 31 March
2021 was 43% higher than a year ago at GBP9.0m (H1 2020: GBP6.3m).
Adjusted profit before tax for the period rose by 124% to GBP3.8m
(H1 2020: GBP1.7m). Net cash at the end of March 2021 was up by 60%
at GBP7.7m (31 March 2020: GBP4.8m).
We are very pleased in particular with the size and values of
the new orders won in the period, continuing the pattern of
increasingly large contracts. Over recent months, we have signed
some of the Company's largest ever orders, with an $18.4m contract
win with Telesur in late March 2021 following September's
record-setting GBP11.2m win.
Equally significantly, a key channel partner relationship
yielded its first contract in early March 2021, worth GBP5m, for a
publicly-owned network operator in the Middle East. We expect to
see further contracts come through in due course from this
important channel partner relationship. These high profile orders
continue to demonstrate the quality of both our product offering
and support capability and will help to drive new business in the
future.
With two major new customer wins during the first half and
strong demand from existing customers, the back order book at 31
March 2021 moved to a new high of GBP42.1m (31 March 2020:
GBP24.2m), up 74% year-on-year.
Even after our recent major new wins in the first half, the new
business pipeline of opportunities had increased at the end of the
period. The total unweighted value of current opportunities at 31
March 2021 was up by 9% to GBP130.8m compared with the same date
last year (31 March 2020: GBP120.3m).
From a trading perspective, while the coronavirus pandemic has
continued to cause disruption on a global scale, our core
telecommunications marketplace has seen rising data traffic levels,
reflecting the move to home working. The importance of broadband
infrastructure has never been more obvious and the current health
emergency has served to support significant on-going investment in
5G and broadband infrastructure by providers, flowing down to the
support systems that we provide.
Looking ahead over the balance of the current financial year, we
are very confident of continuing progress, supported by our strong
back order book. We are also in a good position with potential
major new orders.
Financial Overview
For the six months to 31 March 2021, the Group's revenue
totalled GBP12.8m (H1 2020: GBP10.2m), a rise of 26% against the
same period last year.
Services income was up 7% to GBP6.5m, accounting for 51% of
Group revenue (H1 2020: GBP6.1m and 59%). Software income increased
by 77% to GBP5.8m (from software licence, support and maintenance
sales) making up 46% of revenue (H1 2020: GBP3.3m and 32%), and
third party income decreased to GBP0.5m, approximately 4% of
revenues (H1 2020: GBP0.8m and 8%).
Our existing customer base (those customers acquired at least 12
months before the end of the reporting period) accounted for a high
proportion of the Group's income, as is typical, and generated 71%
of the Group's revenue in the first half (H1 2020: 82%). This was a
lower percentage than the same period last year, reflecting recent
new customer wins.
Recurring revenue(1) , from support and maintenance and managed
service contracts, grew by 59% to GBP4.4m (H1 2020: GBP2.8m) and
accounted for 35% of the Group's income (H1 2020: 27%). As a result
of new customer 'go-lives' over the preceding 12 months, and an
increased uptake of managed services, annualised recurring revenue
at the end of March increased by 43% year-on-year to GBP9.0m (31
March 2020: GBP6.3m).
Reflecting the growth in the business, overheads in the first
half rose 5% to GBP5.3m (H1 2020: GBP5.0m), with personnel costs
rising 1% to GBP3.0m (H1 2020: GBP3.0m).
Adjusted earnings before interest, tax, depreciation and
amortisation ("EBITDA"), which excludes share-based payments
charges, rose to GBP4.8m (H1 2020: GBP2.7m). EBITDA increased by
79% to GBP4.8m (H1 2020: GBP2.7m).
The adjusted profit before tax(3) rose by 124% to GBP3.8m (H1
2020: GBP1.7m) and the adjusted earnings per share(4) was 105%
higher at 11.5p (H1 2020: 5.6p). On a reported basis, profit before
tax was GBP3.3m (2020: GBP1.2m), up 183% and earnings per share was
9.7p (2020: 3.8p), a rise of 158%.
Net assets rose by 11% to GBP17.2m as at 31 March 2021 (31 March
2020: GBP15.4m). This includes GBP7.7m of cash balances (H1 2020:
GBP6.0m).
Cash Flow and Banking
Net cash as at 31 March 2021 increased by 60% to GBP7.7m (31
March 2020: GBP4.8m), reflecting cash of GBP7.7m (H1 2020: GBP6.0m)
and no debt (H1 2020: GBP1.2m). Net cash generated from operations
in the period rose by 47% to GBP2.7m (H1 2020: GBP1.8m).
Expenditure on capitalised R&D for the period was GBP0.5m
(H1 2020: GBP0.4m) after investment in product development to
further enhance our intellectual property.
Expenditure on fixed assets was GBP0.1m (H1 2020: GBP0.2m).
Free cash generation in the period increased by 75% to GBP2.1m
(H1 2020: GBP1.2m). This was utilised to pay the final dividend of
GBP1.1m (H1 2020: GBP1.0m), in respect of the year ended 30
September 2020, and to repay GBP0.6m (H1 2020: GBP0.6m) of the
GBP5.0m term loan taken up in conjunction with the AIM IPO in March
2016, which has now been completely repaid.
Dividend
The Board is pleased to declare an increased interim dividend of
2.10p per share (H1 2020: 1.75p), a 20% rise year-on-year. The
interim dividend will become payable on 18 June 2021 to those
shareholders on the Company's register as at the close of business
on the record date of 28 May 2021. The ex-dividend date is 27 May
2021. As previously stated, the Board intends to distribute between
a third to a half of the Group's free cash flow as dividends each
year, subject to the Group's performance and the Board's assessment
of the trading environment.
Operational Overview
We continued to operate home working worldwide in order to
protect our staff during the ongoing coronavirus emergency. Staff
and customers are now well adapted to the new environment, and the
Company will consider the preservation of some of the efficiencies
deriving from home working once the pandemic is over, through some
form of hybrid operating model.
Demand from the existing customer base was strong over the first
half, with both newer and older customers generating significant
new orders. Typically, our larger customers have greater demand for
additional software licences, modules or other services. For
example, a significant three-year managed service contract was
agreed in the period with Scarlet, part of Belgium's largest
telecommunications company Proximus Group and a customer since
2017. We also started a major upgrade project for Go, the leading
telecommunications provider in Malta and a long standing
customer.
New customer wins during the period were excellent, and we
continued the upward trend of bidding for and winning larger
contracts. In March 2021, we won an $18.4m contract with Telesur,
the leading telecommunications provider in Suriname, Latin America.
Our largest ever contract, it is to provide a common, convergent
platform to support product catalogue, charging, billing and
customer experience for all of Telesur's fixed and mobile
services.
An important channel partner delivered its first contract in
March 2021, with a GBP5.0m deal with a publicly-owned network
operator in the Middle East. Our solution is being packaged with
the channel partner's wider overall solution, and we believe there
is scope for further expansion of the contract in the future. As
this is the first contract with this channel partner, we will be
closely involved its implementation. We expect larger contracts to
come through from this channel in due course, which should further
drive Cerillion's revenues and earnings.
These successes helped to increase new orders at the end of the
first half by 148% to GBP23.6m year-on-year (H1 2020: GBP9.5m). In
turn, this has driven a 74% rise in the back order book to GBP42.1m
at 31 March 2021 (31 March 2020: GBP24.2m). These contracted (but
not yet recognised) sales will drive revenues over the coming
quarters. Reflecting the growth in the business, specifically in
managed services, support and maintenance and Cerillion Skyline
revenue, the base of recurring revenue has increased by 43%
year-on-year to GBP9.0m (H1 2020: GBP6.3m).
Revenues remain internationally orientated, and we continued to
make progress in Continental Europe, as well as in Asia Pacific and
the Americas. We also believe that our recent major new customer
win in the Middle East is likely to enable us to further develop
business in that important region.
The BSS/OSS solutions that we provide remain a core requirement
for telecommunications operators and service providers. Their
mobile and broadband infrastructure is currently more essential
than ever in supporting remote interaction for businesses,
communities and public services. To ensure that we remain
competitive in providing these solutions, it is important that we
continue to invest in R&D to renew and improve our product set,
providing new features and enhancing existing functionality. We are
in the process of investing approximately 10,000 man days in
R&D over FY 2021 to provide two major software releases. We
completed the first, Cerillion 21.1, in the period releasing it in
April. As the latest version of our Enterprise OSS/BSS suite for
fixed, mobile, cable and multi-service operators, it provides
customers with enhanced B2B functionality, with a particular focus
on lead and opportunity management. The second release is well
under way.
In order to support business growth, we have also continued to
build the team, bringing on new and experienced talent, and have
expanded our staff numbers in both India and London.
We are currently tendering for a range of new business
opportunities, and our pipeline of new business opportunities has
increased by 9% year-on-year to a total value of GBP131m (31 March
2020: GBP120m).
Outlook
The business has made tremendous progress and remains very well
placed operationally and financially. The robust balance sheet,
which now carries no debt, and the significant increase in
recurring income provide a strong underpinning and platform for
future growth.
Existing major implementation projects and the strong back order
book leave Cerillion very well-positioned to achieve its full year
targets. The expanded pipeline of new business will also support
continuing revenue and earnings growth. The Board therefore remains
confident of future prospects this year and beyond.
Alan Howarth Louis Hall
Chairman Chief Executive Officer
Notes:
(1) Recurring revenue includes annualised support and
maintenance, managed service and Skyline revenue.
(2) Back order book consists of GBP35.6m of sales contracted but
not yet recognised at the end of the reporting period plus GBP6.5m
of annualised support and maintenance revenue. It is anticipated
that 75% of the GBP35.6m of sales contracted but not yet recognised
as at the end of the reporting period will be recognised within the
next 12 to 24 months.
(3) Adjusted profit before tax is a non-GAAP, company-specific
measure which is earnings excluding taxes, amortisation of acquired
intangible assets and share-based payments charges.
(4) Adjusted earnings per share is a non-GAAP, company-specific
measure which is earnings after taxes, excluding share-based
payments charges and amortisation of acquired intangible
assets.
Cerillion plc Interim Financial Information
Unaudited Consolidated Statement of Comprehensive Income
for the six months ended 31 March 2021
GBP Consolidated Consolidated Consolidated
Unaudited Unaudited Audited
half year half year year to
to to 30 Sep 2020
31 Mar 2021 31 Mar 2020
Continuing operations
Revenue 12,808,391 10,203,766 20,813,925
Cost of sales (2,745,730) (2,535,860) (5,465,710)
------------- ------------- -------------
Gross profit 10,062,661 7,667,906 15,348,215
Operating expenses (6,720,161) (6,453,497) (12,545,475)
Adjusted EBITDA* 4,819,689 2,718,690 5,805,645
Depreciation and amortisation (1,459,119) (1,464,666) (2,934,178)
Share based payment charge (18,070) (39,615) (68,727)
Operating profit 3,342,500 1,214,409 2,802,740
Finance costs (87,378) (115,141) (214,142)
Finance income 33,964 62,068 49,990
Adjusted profit before
tax** 3,803,572 1,697,366 3,700,145
Share based payment charge (18,070) (39,615) (68,727)
Amortisation of acquired
intangibles (496,416) (496,415) (992,830)
--------------------------------- ------------- ------------- -------------
Profit before tax 3,289,086 1,161,336 2,638,588
Taxation (422,960) (48,021) (28,783)
------------- ------------- -------------
Adjusted profit for the
period*** 3,380,612 1,649,345 3,671,362
Share based payment charge (18,070) (39,615) (68,727)
Amortisation of acquired
intangibles (496,416) (496,415) (992,830)
--------------------------------- ------------- ------------- -------------
Profit for the period 2,866,126 1,113,315 2,609,805
Other comprehensive income
Exchange differences on
translating foreign operations (120,707) (126,789) (165,075)
------------- ------------- -------------
Total comprehensive profit
for the period 2,745,419 986,526 2,444,730
------------- ------------- -------------
All transactions are attributable to the owners of the
parent.
H1 2021 H1 2020 FY 2020
Basic earnings per share from continuing 9.7 pence 3.8 pence 8.8 pence
operations
Diluted earnings per share from 9.6 pence 3.7 pence 8.8 pence
continuing operations
Adjusted basic earnings per share
from continuing operations 11.5 pence 5.6 pence 12.4 pence
* Adjusted EBITDA is a non-GAAP, Company-specific measure,
which is earnings excluding finance income, finance costs,
taxes, depreciation, amortisation and share-based payments
charge.
** Adjusted profit before tax is a non-GAAP, Company-specific
measure which is earnings excluding taxes, amortisation
of acquired intangible assets and share-based payments
charge.
*** Adjusted profit for the period is a non-GAAP, Company-specific
measure which is earnings excluding share-based payments
charge and amortisation of acquired intangible assets.
Unaudited Condensed Consolidated Statement of Changes in
Equity
as at 31 March 2021
GBP Share Share Share Treasury Foreign Retained Total Equity
capital premium option stock exchange earnings
reserve reserve
Balance at 1 October
2019 (audited) 147,567 13,318,725 158,515 - 118,094 1,802,073 15,544,974
--------------------------- --------- ----------- --------- ------------ ---------- ------------ -------------
Profit for the period - - - - - 1,113,315 1,113,315
Exchange difference
on translating foreign
operations - - - - (126,789) - (126,789)
--------------------------- --------- ----------- --------- ------------ ---------- ------------ -------------
Total comprehensive
income - - - - (126,789) 1,113,315 986,526
Share option charge - - 39,615 - - - 39,615
Purchase of treasury
stock - - - (362,506) - - (362,506)
Exercise of share options - - (75,623) 362,481 - (91,464) 195,394
Dividends - - - - - (973,945) (973,945)
--------------------------- --------- ----------- --------- ------------ ---------- ------------ -------------
Balance at 31 March
2020 (unaudited) 147,567 13,318,725 122,507 (25) (8,695) 1,849,979 15,430,058
--------------------------- --------- ----------- --------- ------------ ---------- ------------ -------------
Profit for the period - - - - - 1,496,490 1,496,490
Exchange difference
on translating foreign
operations - - - - (38,286) - (38,286)
--------------------------- --------- ----------- --------- ------------ ---------- ------------ -------------
Total comprehensive
income - - - - (38,286) 1,496,490 1,458,204
Share option charge - - 29,112 - - - 29,112
Purchase of treasury
stock - - - (375,000) - - (375,000)
Exercise of share options - - - - - 1 1
Dividends - - - - - (516,486) (516,486)
Balance at 30 September
2020 (audited) 147,567 13,318,725 151,619 (375,025) (46,981) 2,829,984 16,025,889
--------------------------- --------- ----------- --------- ------------ ---------- ------------ -------------
Profit for the period - - - - - 2,866,126 2,866,126
Exchange difference
on translating foreign
operations - - - - (120,707) - (120,707)
--------------------------- --------- ----------- --------- ------------ ---------- ------------ -------------
Total comprehensive
income - - - - (120,707) 2,866,126 2,745,419
Share option charge - - 18,070 - - - 18,070
Purchase of treasury
stock - - - (512,500) - - (512,500)
Exercise of share options - - (66,925) 375,000 - (307,450) 625
Dividends - - - - - (1,106,755) (1,106,755)
--------------------------- --------- ----------- --------- ------------ ---------- ------------ -------------
Balance at 31 March
2021 (unaudited) 147,567 13,318,725 102,764 (512,525) (167,688) 4,281,905 17,170,748
--------------------------- --------- ----------- --------- ------------ ---------- ------------ -------------
Unaudited Condensed Consolidated Balance Sheet
as at 31 March 2021
GBP Consolidated Consolidated Consolidated
Unaudited Unaudited Unaudited Audited
Note 31 Mar 2021 31 Mar 2020 30 Sep 2020
Assets
Non-current
Goodwill 2,053,141 2,053,141 2,053,141
Other intangible assets 4,001,157 4,683,009 4,475,236
Property, plant and equipment 711,687 870,301 787,885
Right-of-use assets 4,044,525 4,743,229 4,389,175
Other receivables 5 1,616,440 1,797,410 2,439,119
Deferred tax assets 143,885 118,487 145,060
------------- ------------- -------------
12,570,835 14,265,577 14,289,616
------------- ------------- -------------
Current assets
Trade receivables 7,541,911 4,423,747 2,687,472
Other receivables 5 7,419,335 7,124,229 6,829,096
Cash and cash equivalents 7,709,248 6,004,415 8,311,867
------------- ------------- -------------
22,670,494 17,552,391 17,828,435
------------- ------------- -------------
Total assets 35,241,329 31,817,968 32,118,051
------------- ------------- -------------
Equity and liabilities
Shareholders' equity
Share capital 147,567 147,567 147,567
Share premium account 13,318,725 13,318,725 13,318,725
Treasury stock (512,525) (25) (375,025)
Foreign exchange reserve (167,688) (8,695) (46,981)
Share option reserve 102,764 122,507 151,619
Retained profit 4,281,905 1,849,979 2,829,984
------------- ------------- -------------
Total Equity 17,170,748 15,430,058 16,025,889
------------- ------------- -------------
Liabilities
Non-current
Borrowings - - -
Deferred tax liabilities 608,395 871,178 883,823
Lease liabilities 4,266,993 5,032,562 4,655,772
------------- ------------- -------------
4,875,388 5,903,740 5,539,595
------------- ------------- -------------
Current liabilities
Trade payables 1,089,645 1,463,328 736,157
Other payables 5 12,105,548 7,824,561 9,207,051
Borrowings - current - 1,196,281 609,359
------------- ------------- -------------
13,195,193 10,484,170 10,552,567
------------- ------------- -------------
Total equity and liabilities 35,241,329 31,817,968 32,118,051
------------- ------------- -------------
Unaudited Condensed Consolidated Cash Flow Statement
for the six months ended 31 March 2021
GBP Consolidated Consolidated Consolidated
Unaudited Unaudited Audited
half year half year year to
to 31 Mar to 30 Sep 2020
2021 31 Mar 2020
Operating activities
Reconciliation of profit to operating
cash flows
Profit for the period 2,866,126 1,113,315 2,609,805
Add back:
Taxation 422,960 48,021 28,783
Depreciation 500,613 536,905 1,058,169
Amortisation and impairment 958,506 927,761 1,876,009
Share option charge 18,070 39,615 68,727
Finance costs 87,378 115,141 214,142
Finance income (33,964) (62,068) (49,990)
4,819,689 2,718,690 5,805,645
Increase in trade and other receivables (4,531,431) (2,744,569) (1,412,938)
Increase in trade and other creditors 2,672,615 1,987,903 2,501,200
------------- ------------- -------------
Cash from operations 2,960,873 1,962,024 6,893,907
Finance costs (87,378) (115,141) (214,142)
Finance income 1,464 4,000 49,990
Tax paid (223,612) (52,023) (123,171)
------------- ------------- -------------
Net cash generated from operating
activities 2,651,347 1,798,860 6,606,584
------------- ------------- -------------
Investing activities
Capitalisation of development
costs (484,428) (400,002) (1,108,473)
Purchase of property, plant and
equipment (87,624) (210,861) (330,098)
------------- ------------- -------------
Net cash used in investing activities (572,052) (610,863) (1,438,571)
------------- ------------- -------------
Financing activities
Borrowings repaid (609,359) (574,665) (1,161,587)
Purchase of treasury stock (512,500) (362,506) (737,506)
Receipts from exercise of share
options 625 195,395 195,395
Principal elements of finance
leases (382,350) (202,468) (411,653)
Dividends paid (1,106,755) (973,945) (1,490,431)
------------- ------------- -------------
Net cash used in financing activities (2,610,339) (1,918,189) (3,605,782)
------------- ------------- -------------
Net (decrease)/increase in cash
and cash equivalents (531,044) (730,192) 1,562,231
Translation differences (71,575) (36,799) (21,770)
Cash and cash equivalents at beginning
of period 8,311,867 6,771,406 6,771,406
------------- ------------- -------------
Cash and cash equivalents at end
of period 7,709,248 6,004,415 8,311,867
------------- ------------- -------------
Unaudited Notes
1. Basis of Preparation and Accounting Policies
The condensed financial information is unaudited and was
approved by the Board of Directors on 14 May 2021.
The Company is a public limited company, which was incorporated
in England and Wales on 5 March 2015. The address of its registered
office is 25 Bedford Street, London, WC2E 9ES. The interim
financial information for the six months ended 31 March 2021 has
been prepared in accordance with International Financial Reporting
Standards (IFRS) and IFRIC interpretations endorsed by the European
Union (EU). The interim financial information for the six months
ended 31 March 2021 has been prepared under the historical cost
convention.
The interim financial information for the six months ended 31
March 2021 does not constitute statutory accounts within the
meaning of section 434 of the Companies Act. Statutory accounts for
the year ended 30 September 2020 have been delivered to the
Registrar of Companies. These accounts contain an unqualified audit
report and did not contain a statement under the Companies Act 2006
regarding matters which are required to be noted by exception.
The preparation of the interim financial information for the six
months ended 31 March 2021 in conformity with generally accepted
accounting principles requires the use of estimates and assumptions
that affect the reported amounts of assets and liabilities at the
date of the Statements and the reported amounts of revenues and
expenses during the period. Although these estimates are based on
management's best knowledge of the amount, event or actions, actual
results ultimately may differ from those estimates. The accounting
policies adopted are consistent with those of the previous
financial year and corresponding interim reporting period, except
for the adoption of new and amended standards which have no
material impact on the accounting policies, financial position or
performance of the Group.
There is no material difference between the fair value of
financial assets and liabilities and their carrying amount.
The functional and presentational currency is UK Sterling.
2. Going concern
The Directors have assessed the current financial position of
the Group, along with future cash flow requirements, to determine
if the Group has the financial resources to continue as a going
concern for the foreseeable future. The conclusion of this
assessment is that it is appropriate that the Group be considered a
going concern. For this reason the Directors continue to adopt the
going concern basis in preparing the interim financial information
for the six months ended 31 March 2021 . The interim financial
information does not include any adjustments that would result in
the going concern basis of preparation being inappropriate.
3. Basis of consolidation
The consolidated financial information incorporates the
financial information of the Company and entities controlled by the
Company (its subsidiaries) at 31 March 2021. Control is achieved
where the Company has the power to govern the financial and
operating policies of an investee entity so as to obtain benefit
from its activities.
Except as noted below, the financial information of subsidiaries
is included in the consolidated financial statements using the
acquisition method of accounting. On the date of acquisition the
assets and liabilities of the relevant subsidiaries are measured at
their fair values.
All intra-Group transactions, balances, income and expenses are
eliminated on consolidation.
4. Adjusted earnings
EBITDA, profit before tax, profit for the period and earnings
per share have been adjusted to take account of GBP18,070 (6 months
to 31 March 2020 GBP39,615) relating to P&L charges in respect
of the Company's share based long term incentive plan. The profit
before tax, profit for the period and earnings per share have also
been adjusted to take account of the amortisation of acquired
intangibles of GBP496,416 (6 months to 31 March 2020
GBP496,415).
5. Other receivables and other payables
Unaudited Unaudited Audited
31 Mar 2021 31 Mar 30 Sep
GBP 2020 2020
GBP GBP
Other receivables - non-current
Amounts recoverable on contracts 1,616,440 1,797,410 2,439,119
1,616,440 1,797,410 2,439,119
------------- ----------- -----------
Other receivables - current
Amounts recoverable on contracts 6,513,985 6,365,637 6,055,648
Prepayments 542,615 433,534 406,573
Other receivables 362,735 325,058 366,875
7,419,335 7,124,229 6,829,096
------------- ----------- -----------
Other payables
Taxation 466,000 72,000 -
Other taxation and social
security 274,296 306,763 551,990
Pension 44,319 41,060 42,232
Accruals 1,740,393 915,307 2,123,733
Deferred income 8,153,878 5,291,483 5,084,999
Lease liability 929,135 755,101 922,706
Other payables 497,527 442,847 481,391
12,105,548 7,824,561 9,207,051
------------- ----------- -----------
6. Availability of this announcement
This announcement together with the financial statements herein
and a presentation in respect of the interim financial results are
available on the Group's website, www.cerillion.com.
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END
IR GPUUGAUPGGCC
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