TIDMCER
RNS Number : 3253Z
Cerillion PLC
15 May 2023
AIM: CER
Cerillion plc
("Cerillion", the "Company" or the "Group")
Interim results
for the six months ended 31 March 2023
Record Six-month Period and Strong Prospects
Cerillion plc, the billing, charging and customer relationship
management software solutions provider, today issues its interim
results for the six months ended 31 March 2023.
Results H1 2023 H1 2022 Change
---------------------------------- --------- --------- --------
Revenue GBP20.5m GBP16.1m +27%
Annualised recurring revenue(1) GBP13.1m GBP9.8m +34%
Adjusted EBITDA(3) GBP10.0m GBP7.2m +38%
Statutory EBITDA GBP9.9m GBP7.1m +39%
Adjusted EBITDA margin 48.9% 44.9% +400bps
Adjusted profit before
tax(4) GBP9.2m GBP6.3m +46%
Statutory profit before
tax GBP8.6m GBP5.7m +52%
Adjusted basic earnings
per share(5) 25.5p 18.6p +37%
Statutory basic earnings
per share 23.5p 16.4p +43%
Dividend per share 3.3p 2.6p +27%
Net cash GBP23.6m GBP16.5m +43%
---------------------------------- --------- --------- --------
Financial
-- Revenue up 27% to GBP20.5m (H1 2022: GBP16.1m), reflecting
ongoing major implementation projects for new customers and new
orders from existing customers
-- Annualised recurring revenue(1) at 31 March 2023 up 34% to
GBP13.1m (H1 2022: GBP9.8m), mainly driven by increased uptake of
managed services
-- Adjusted EBITDA(3) up 38% to GBP10.0m (H1 2022: GBP7.2m)
-- Adjusted profit before tax(4) up 46% to GBP9.2m (H1 2022: GBP6.3m)
-- Adjusted earnings per share(5) up 37% to 25.5p (H1 2022: 18.6p)
-- Back-order book(2) up 8% to GBP43.0m (H1 2022: GBP39.7m)
-- Total new orders up 40% to GBP15.3m (H1 2022: GBP10.9m)
-- New customer pipeline up 23% to a record GBP212.0m (H1 2022: GBP172.0m)
-- Net cash up 43% to GBP23.6m (31 March 2022: GBP16.5m)
-- Interim dividend up 27% to 3.3p (H1 2022: 2.6p)
Operational
-- Continuing to build teams at new offices in Sofia, Bulgaria
and in Ahmedabad and Indore, India
-- Two major new contracts signed in the period with existing customers, both operating in EMEA:
o 10-year contract worth c. GBP10m, continuing a 20-year
relationship and
o five-year contract worth c. GBP6m
-- The Board believes that the Group is well-positioned to deliver its full year targets
Louis Hall, CEO of Cerillion plc, commented:
"Cerillion's interim results again set new records for our key
performance indicators in any six-month period and demonstrate the
strong momentum in the business and the significant growth
opportunities available.
"We continue to expand our resources and invest in the product
suite. With a strong new customer sales pipeline, which includes
advanced-stage contract discussions with certain potential new
customers, as well as healthy demand from existing customers, we
expect continuing strong growth ahead. Given the Company's progress
and prospects, we believe it is well-placed to deliver our full
year targets and view the future with confidence."
(1) Annualised recurring revenue includes annualised support and
maintenance, managed services and Cerillion Skyline revenue.
(2) Back-order book of GBP43.0m consists of GBP34.7m of sales
contracted but not yet recognised at the end of the reporting
period plus GBP8.3m of annualised support and maintenance revenue.
It is anticipated that 75% of the GBP34.7m of sales contracted but
not yet recognised as at the end of the reporting period will be
recognised within the next 12 to 18 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 divided
by the average weighted number of shares in the period.
For further information please contact:
Cerillion plc c/o KTZ Communications
Louis Hall, CEO, T: 020 3178 6378
Andrew Dickson, CFO
Liberum (Nomad and Broker) T: 020 3100 2000
Bidhi Bhoma, Ben Cryer, William Hall
Singer Capital Markets (Joint Broker) T: 020 7496 3000
Rick Thompson, George Tzimas, James
Fischer
T: 020 3178 6378
KTZ Communications
Katie Tzouliadis, Robert Morton
About Cerillion
Cerillion is a leading provider of mission critical software for
billing, charging and customer relationship management, with a
23-year track record in providing comprehensive revenue and
customer management solutions. The Company has around 80 customers
across 44 countries, principally serving the telecommunications
market.
The Company is headquartered in London and also has operations
in India (in Pune, Ahmedabad, and Indore), Bulgaria (in Sofia) and
Australia (in Sydney).
CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S REPORT
Overview
The Company continues to grow strongly as these excellent
interim results show. All key KPIs are at record highs for a
six-month period, including revenue, profit and cash.
Revenue has increased by 27% year-on-year to GBP20.5m (H1 2022:
GBP16.1m), reflecting the major implementation and upgrade projects
under way with new customers and strong flows of business from
existing customers, as well as an increased baseline of recurring
income. Annualised recurring revenue at 31 March 2023 was 34%
higher than a year ago at GBP13.1m (H1 2022: GBP9.8m), which mainly
reflected the continuing trend for customers to take up managed
services. Adjusted profit before tax rose by 46% to GBP9.2m (H1
2022: GBP6.3m). Net cash at the end of March 2023 was up by 43% at
GBP23.6m (31 March 2022: GBP16.5m).
Total new orders increased year-on-year by 40% to GBP15.3m (31
March 2022: GBP10.9m) and the value of the new customer sales
pipeline rose by 23% to GBP212m (31 March 2022: GBP172m). We are in
advanced discussions with certain potential new customers and
expect new customer contracts to come through in the second half
and beyond.
To accommodate the Company's growth, we have continued to
develop our resource base. The new office in Sofia, Bulgaria has
now grown to a team of over 20 delivery consultants, and we have
added to the teams established at our new satellite offices in
India, in Ahmedabad and Indore. In Ahmedabad, we are focusing on
recruiting support resources, whilst in Indore, we are building a
team of digital customer experience developers. This continues our
policy of aiming to source the best people while also managing the
cost base effectively, particularly given inflationary
pressures.
From a market perspective, we are continuing to see strong
investment in 5G and broadband infrastructure. This will create
substantial opportunities for Cerillion as communications service
providers seek to monetise those new assets and gain more value
from their network real estate.
Looking ahead over the balance of the current financial year, we
remain very confident of continuing progress, supported by our
strong back-order book and new customer sales pipeline.
Financial Overview
Revenue for the six months ended 31 March 2023 increased by 27%
to GBP20.5m (H1 2022: GBP16.1m), which reflected the strong opening
back-order book, including ongoing major implementation projects,
and new orders from existing customers.
The mix of revenue was more weighted towards Software(1)
compared to the prior period, with Software revenue of GBP10.5m
accounting for 51% of total revenue (H1 2022: GBP6.1m and 38% of
total revenue). This was a 72% rise year-on-year and mainly
reflected the timing of software licence recognition. Services
revenue(1) of GBP8.9m made up 44% of total revenue (H1 2022:
GBP9.0m and 56% of total revenue). Other revenue of GBP1.0m
accounted for 5% of total revenue (H1 2022: GBP1.0m and 6% of total
revenue).
Gross margin for the period increased to 81.5% (H1 2022: 78.5%).
This rise principally reflected the higher proportion of software
licence revenue recognised, as well as a favourable impact from
foreign exchange rates. Whilst headcount increased in all regions
to support growth, our focus on building resources in India and
Bulgaria helped to reduce overall payroll inflation across the
Group.
Existing customers (those customers acquired at least 12 months
before the end of the reporting period) made up a high proportion
of the Group's revenue, as is typical, and generated 89% of total
revenue in the period (H1 2022: 91%).
Recurring revenue(2) , from support and maintenance and managed
service contracts, grew by 36% to GBP6.5m (H1 2022: GBP4.8m) and
accounted for 32% of the Group's revenue (H1 2022: 30%). The rise
largely reflected increased uptake of managed services, from both
new and existing customer deployments, and support and maintenance
fee increments. Annualised recurring revenue at the end of March
2023 increased by 34% year-on-year to GBP13.1m (31 March 2022:
GBP9.8m).
As expected, operating expenses increased to GBP8.3m (H1 2022:
GBP7.0m), an 18% rise. The main factors behind the rise were higher
headcount, higher sales commission and the effect of foreign
exchange rates. On a constant currency basis, operating expenses
increased by 13%.
Adjusted earnings before interest, tax, depreciation and
amortisation ("EBITDA"), which excludes share based payments
charges, rose by 38% to GBP10.0m (H1 2022: GBP7.2m). Statutory
EBITDA increased by 39% to GBP9.9m (H1 2022: GBP7.1m).
Adjusted profit before tax(3) rose by 46% to GBP9.2m (H1 2022:
GBP6.3m) and adjusted earnings per share(4) was 37% higher at 25.5p
(H1 2022: 18.6p). Statutory profit before tax increased by 52% to
GBP8.6m (H1 2022: GBP5.7m), and statutory earnings per share
increased by 43% to 23.5p (H1 2022: 16.4p).
The balance sheet remains strong. Net assets rose by 38% to
GBP31.8m as at 31 March 2023 (31 March 2022: GBP23.0m).
Cash Flow and Banking
Net cash at 31 March 2023 increased by 43% to GBP23.6m (31 March
2022: GBP16.5m), with no debt in either periods. Net cash generated
from operations in the period was GBP6.6m (H1 2022: GBP6.5m).
Development costs of GBP0.6m were capitalised in the period (H1
2022: GBP0.5m) after investment to further enhance the Company's
intellectual property.
Expenditure on fixed assets was GBP0.2m (H1 2022: GBP0.1m).
Free cash generation in the period was broadly maintained at
GBP5.8m (H1 2022: GBP5.9m), principally reflecting the higher
profit, offset by an increase in working capital due to the higher
software licence revenue recognised. Cash generated in the period
was partly utilised to pay the final dividend of GBP1.9m (H1 2022:
GBP1.5m) in respect of the year ended 30 September 2022.
Dividend
The Board is pleased to declare an increased interim dividend of
3.3p per share (H1 2022: 2.6p), a 27% rise year-on-year. The
interim dividend will become payable on 23 June 2023 to those
shareholders on the Company's register as at the close of business
on the record date of 2 June 2023. The ex-dividend date is 1 June
2023.
As previously stated, the Board aims 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
Demand from the existing customer base was very healthy over the
first half, with new orders from existing customers up by 40% to
GBP15.3m (H1 2022: GBP10.9m). These new orders included additional
modules, software licence expansions, scope expansions on
implementation projects, upgrade programmes and managed services.
We were particularly pleased to agree a major new 10-year contract
worth GBP10 million with an existing customer with operations in
EMEA, continuing a 20 year-relationship. We also signed a GBP6
million agreement, which has a five-year term, with another EMEA
customer. The new customer sales pipeline grew strongly, up 23%, to
GBP212m as at 31 March 2023 (31 March 2022: GBP172m), and with
certain discussions at an advanced stage, we expect to close new
customer orders in the second half and beyond.
The back-order book stood at a very healthy level of GBP43.0m at
31 March 2023 (31 March 2022: GBP39.7m), buoyed by new orders.
These contracted (but not yet recognised) orders will drive
revenues over the coming quarters. It is also very encouraging to
see the Group's base of recurring revenue increase as the business
grows and both new and existing customers take up managed services
and support and maintenance contracts. We expect this trend to
continue.
The BSS/OSS(5) solutions that we provide remain a core
requirement for telecommunications operators and service providers,
and substantial investment in 5G and fibre rollout continues to
drive investment in replacing, upgrading and improving BSS/OSS
solutions. This is done in order to drive more revenue from the
network infrastructure real estate, with BSS/OSS solutions
providing the bridge between network and customer and hence
monetisation. The importance of the solutions that the Company
provides is illustrated in a survey(6) of communications service
providers, published by Gartner, the US-based technological
research and consulting firm, in April 2023. The survey cites the
following as priorities for software investments, all of which are
enabled by the Company's solutions:
-- Digitisation of sales and support;
-- Support for new business models/product types;
-- Improved customer lifetime values; and
-- Improved customer experience and engagement.
In order to enhance our product offering and our competitive
positioning, we continue to invest in R&D and issue two major
product releases a year. These provide new features and
improvements to existing functionality. This year, we expect to
invest a total of approximately 12,000 man-days in R&D.
We have also continued to expand and develop our teams, as noted
above, adding new and experienced talent in the UK, Bulgaria and
India.
Outlook
The business has made strong progress and is very well placed in
a growing marketplace. Our 'productised', 'as-a-service' approach
stands out, and the quality, breadth and completeness of our
solutions provides us with strong competitive differentiation.
We believe that Cerillion remains well-positioned to achieve its
full year targets, supported by existing major implementation
projects, the healthy back-order book, and our strong new customer
pipeline, which includes a number of advanced-stage new contract
discussions.
The Company's robust balance sheet, which carries no debt, and
the increasing level of recurring income, provide a strong
underpinning for the business as it continues to grow and develop.
The Board views near and mid-term growth prospects very
positively.
Alan Howarth Louis Hall
Chairman Chief Executive Officer
Notes:
(1) Software revenue is made up of software licence, support and
maintenance, managed service and Cerillion Skyline revenue. In the
prior period, software revenue was only made up of software licence
and support and maintenance revenue; managed service and Cerillion
Skyline revenue were included within services. The prior period
comparatives have been restated to reflect the updated definition,
which is consistent with that used for year-end reporting.
(2) Recurring revenue includes annualised support and
maintenance, managed service and Cerillion Skyline revenue.
(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
divided by the average weighted number of shares in the period.
(5) BSS/OSS; in telecommunications, this refers respectively to
business support systems and operating support systems.
Gartner Disclaimer:
(6) GARTNER is a registered trademark and service mark of
Gartner, Inc. and/or its affiliates in the U.S. and internationally
and is used herein with permission. All rights reserved.
The industry report referred to above is Gartner "Market Guide
for CSP Customer Management and Experience Solutions" (published 10
April 2023).
Gartner does not endorse any vendor, product or service depicted
in our research publications, and does not advise technology users
to select only those vendors with the highest ratings or other
designation. Gartner research publications consist of the opinions
of Gartner's research organization and should not be construed as
statements of fact. Gartner disclaims all warranties, expressed or
implied, with respect to this research, including any warranties of
merchantability or fitness for a particular purpose.
INTERIM FINANCIAL INFORMATION
Unaudited Consolidated Statement of Comprehensive Income
for the six months ended 31 March 2023
Consolidated Consolidated Consolidated
Unaudited Unaudited Audited
half year half year year to
to to 30 Sep 2022
31 Mar 2023 31 Mar 2022 GBP'000
GBP'000 GBP'000
Continuing operations
Revenue 20,497 16,140 32,726
Cost of sales (3,790) (3,476) (7,221)
------------- ------------- -------------
Gross profit 16,707 12,664 25,505
Operating expenses (8,254) (7,018) (13,031)
Impairment losses on financial
assets (168) - (1,770)
Adjusted EBITDA* 10,017 7,248 13,750
Depreciation and amortisation (1,615) (1,465) (2,986)
Share based payment charge (117) (137) (60)
Operating profit 8,285 5,646 10,704
Finance costs (65) (73) (146)
Finance income 371 82 337
Adjusted profit before
tax** 9,204 6,288 11,948
Share based payment charge (117) (137) (60)
Amortisation of acquired
intangibles (496) (496) (993)
--------------------------------- ------------- ------------- -------------
Profit before tax 8,591 5,655 10,895
Taxation (1,671) (802) (1,551)
------------- ------------- -------------
Adjusted profit for the
period*** 7,533 5,486 10,397
Share based payment charge (117) (137) (60)
Amortisation of acquired
intangibles (496) (496) (993)
--------------------------------- ------------- ------------- -------------
Profit for the period 6,920 4,853 9,344
Other comprehensive income
Exchange differences on
translating foreign operations (95) 4 70
------------- ------------- -------------
Total comprehensive profit
for the period 6,825 4,857 9,414
------------- ------------- -------------
All transactions are attributable to the owners of the
parent.
H1 2023 H1 2022 FY 2022
Basic earnings per share from continuing 23.5 pence 16.4 pence 31.7 pence
operations
Diluted earnings per share from 23.4 pence 16.4 pence 31.6 pence
continuing operations
Adjusted basic earnings per share 25.5 pence 18.6 pence 35.2 pence
from continuing operations
* 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 2023
Share Share Share Treasury Foreign Retained Total Equity
capital premium option stock exchange earnings
reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- --------- --------- --------- --------- ---------- ---------- -------------
Balance at 1 October
2021 (audited) 147 13,319 128 - (167) 6,778 20,205
--------------------------- --------- --------- --------- --------- ---------- ---------- -------------
Profit for the period - - - - - 4,853 4,853
Exchange difference
on translating foreign
operations - - - - 4 - 4
--------------------------- --------- --------- --------- --------- ---------- ---------- -------------
Total comprehensive
income - - - - 4 4,853 4,857
Share option charge - - 137 - - - 137
Purchase of treasury
stock - - - (827) - - (827)
Exercise of share options - - (46) 730 - (576) 108
Dividends - - - - - (1,476) (1,476)
--------------------------- --------- --------- --------- --------- ---------- ---------- -------------
Balance at 31 March
2022 (unaudited) 147 13,319 219 (97) (163) 9,579 23,004
--------------------------- --------- --------- --------- --------- ---------- ---------- -------------
Profit for the period - - - - - 4,491 4,491
Exchange difference
on translating foreign
operations - - - - 66 - 66
--------------------------- --------- --------- --------- --------- ---------- ---------- -------------
Total comprehensive
income - - - - 66 4,491 4,557
Share option charge - - (76) - - - (76)
Exercise of share options - - (6) 97 - (77) 14
Dividends - - - - - (767) (767)
Balance at 30 September
2022 (audited) 147 13,319 137 - (97) 13,226 26,732
--------------------------- --------- --------- --------- --------- ---------- ---------- -------------
Profit for the period - - - - - 6,920 6,920
Exchange difference
on translating foreign
operations - - - - (95) - (95)
--------------------------- --------- --------- --------- --------- ---------- ---------- -------------
Total comprehensive
income - - - - (95) 6,920 6,825
Share option charge - - 117 - - - 117
Dividends - - - - - (1,918) (1,918)
--------------------------- --------- --------- --------- --------- ---------- ---------- -------------
Balance at 31 March
2023 (unaudited) 147 13,319 254 - (192) 18,228 31,756
--------------------------- --------- --------- --------- --------- ---------- ---------- -------------
Unaudited Condensed Consolidated Balance Sheet
as at 31 March 2023
Unaudited Consolidated Consolidated Consolidated
Note Unaudited Unaudited Audited
31 Mar 2023 31 Mar 2022 30 Sep 2022
GBP'000 GBP'000 GBP'000
Assets
Non-current
Goodwill 2,053 2,053 2,053
Other intangible assets 2,172 3,097 2,653
Property, plant and equipment 951 678 980
Right-of-use assets 2,704 3,367 3,057
Other receivables 5 3,619 2,681 2,171
Deferred tax assets 238 224 260
------------- ------------- -------------
11,737 12,100 11,174
------------- ------------- -------------
Current assets
Trade receivables 2,812 1,744 2,503
Other receivables 5 11,149 9,575 8,702
Cash and cash equivalents 23,645 16,514 20,249
------------- ------------- -------------
37,606 27,833 31,454
------------- ------------- -------------
Total assets 49,343 39,933 42,628
------------- ------------- -------------
Equity and liabilities
Shareholders' equity
Share capital 147 147 147
Share premium account 13,319 13,319 13,319
Treasury stock - (97) -
Foreign exchange reserve (192) (163) (97)
Share option reserve 254 219 137
Retained earnings 18,228 9,579 13,226
------------- ------------- -------------
Total Equity 31,756 23,004 26,732
------------- ------------- -------------
Liabilities
Non-current
Other payables 469 428 934
Deferred tax liabilities 624 767 719
Lease liabilities 2,616 3,460 3,050
------------- ------------- -------------
3,709 4,655 4,703
------------- ------------- -------------
Current liabilities
Trade payables 2,382 385 1,154
Other payables 5 11,496 11,889 10,039
13,878 12,274 11,193
------------- ------------- -------------
Total equity and liabilities 49,343 39,933 42,628
------------- ------------- -------------
Unaudited Condensed Consolidated Cash Flow Statement
for the six months ended 31 March 2023
Consolidated Consolidated Consolidated
Unaudited Unaudited Audited
half year half year year to
to 31 Mar to 30 Sep 2022
2023 31 Mar 2022 GBP'000
GBP'000 GBP'000
Operating activities
Reconciliation of profit to operating
cash flows
Profit for the period 6,920 4,853 9,344
Add back:
Taxation 1,671 802 1,551
Depreciation 582 505 1,085
Amortisation 1,033 960 1,901
Share option charge 117 137 60
Finance costs 65 73 146
Finance income (371) (82) (337)
10,017 7,248 13,750
Increase in trade and other receivables (4,061) (1,805) (1,182)
Increase in trade and other payables 1,897 2,465 1,324
------------- ------------- -------------
Cash from operations 7,853 7,908 13,892
Finance costs (65) (73) (146)
Finance income 182 82 337
Tax paid (1,371) (1,434) (1,745)
------------- ------------- -------------
Net cash generated from operating
activities 6,599 6,483 12,338
------------- ------------- -------------
Investing activities
Capitalisation of development
costs (552) (486) (983)
Purchase of property, plant and
equipment (213) (85) (626)
------------- ------------- -------------
Net cash used in investing activities (765) (571) (1,609)
------------- ------------- -------------
Financing activities
Purchase of treasury stock - (827) (827)
Receipts from exercise of share
options - 108 122
Principal elements of finance
leases (430) (400) (807)
Dividends paid (1,918) (1,476) (2,243)
------------- ------------- -------------
Net cash used in financing activities (2,348) (2,595) (3,755)
------------- ------------- -------------
Net increase in cash and cash
equivalents 3,486 3,317 6,974
Translation differences (90) 23 101
Cash and cash equivalents at beginning
of period 20,249 13,174 13,174
------------- ------------- -------------
Cash and cash equivalents at end
of period 23,645 16,514 20,249
------------- ------------- -------------
Unaudited Notes
1. Basis of Preparation and Accounting Policies
The condensed financial information is unaudited and was
approved by the Board of Directors on 12 May 2023.
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 2023 has
been prepared in accordance with UK-adopted International
Accounting Standards. The interim financial information for the six
months ended 31 March 2023 has been prepared under the historical
cost convention.
The interim financial information for the six months ended 31
March 2023 does not constitute statutory accounts within the
meaning of section 434 of the Companies Act. Statutory accounts for
the year ended 30 September 2022 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 2023 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 2023 . 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 2023. 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 GBP116,558 (six
months to 31 March 2022 GBP136,836) relating to P&L charges in
respect of the Company's share based payments charges. 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 (six months to 31 March 2022
GBP496,416).
5. Other receivables and other payables
Unaudited Unaudited Audited
31 Mar 2023 31 Mar 30 Sep
GBP'000 2022 2022
GBP'000 GBP'000
Other receivables - non-current
Amounts recoverable on contracts 3,551 2,611 2,094
Other receivables 68 70 77
3,619 2,681 2,171
------------- ---------- ---------
Other receivables - current
Amounts recoverable on contracts 9,009 8,709 7,759
Prepayments 1,792 712 632
Other receivables 348 154 311
11,149 9,575 8,702
------------- ---------- ---------
Other payables
Taxation 1,177 276 776
Other taxation and social
security 549 420 495
Pension 56 49 46
Accruals 3,097 2,781 3,119
Deferred income 4,991 6,953 4,245
Lease liability 980 954 976
Other payables 646 456 382
11,496 11,889 10,039
------------- ---------- ---------
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
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END
IR EAKSAFDADEFA
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May 15, 2023 02:00 ET (06:00 GMT)
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