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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR GPUUGAUPGGCC

(END) Dow Jones Newswires

May 17, 2021 02:00 ET (06:00 GMT)

Cerillion (LSE:CER)
Historical Stock Chart
From Jun 2021 to Jul 2021 Click Here for more Cerillion Charts.
Cerillion (LSE:CER)
Historical Stock Chart
From Jul 2020 to Jul 2021 Click Here for more Cerillion Charts.