TIDMCER
RNS Number : 6844K
Cerillion PLC
09 May 2022
9 May 2022
AIM: CER
Cerillion plc
("Cerillion", the "Company" or the "Group")
Interim results
for the six months ended 31 March 2022
Record Six-month Period and Continuing 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 2022.
Results H1 2022 H1 2021 Change
Revenue GBP16.1m GBP12.8m +26%
Annualised recurring revenue GBP9.8m GBP9.0m +9%
Adjusted EBITDA(3) GBP7.2m GBP4.8m +50%
Statutory EBITDA GBP7.1m GBP4.8m +48%
Adjusted EBITDA margin 44.9% 37.6%
Adjusted profit before
tax(4) GBP6.3m GBP3.8m +65%
Statutory profit before
tax GBP5.7m GBP3.3m +72%
Adjusted basic earnings
per share(5) 18.6p 11.5p +62%
Statutory basic earnings
per share 16.4p 9.7p +69%
Dividend per share 2.6p 2.1p +24%
Net cash GBP16.5m GBP7.7m +114%
Financial
-- Revenue up 26% to GBP16.1m (H1 2021: GBP12.8m) reflecting
ongoing major implementation projects for new customers and new
orders from existing customers
-- Annualised recurring revenue(1) at 31 March 2022 up 9% to
GBP9.8m (H1 2021: GBP9.0m), with increased uptake of managed
services
-- Adjusted EBITDA(3) up 50% to GBP7.2m (H1 2021: GBP4.8m)
-- Adjusted profit before tax(4) up 65% to GBP6.3m (2021: GBP3.8m)
-- Total new orders decreased to GBP10.9m (H1 2021: GBP23.6m),
however new orders from existing customers increased by 12% to
GBP10.9m (H1 2021: GBP9.7m) and the new customer pipeline is up 31%
to GBP172m (H1 2021: GBP131m), a new record level
o new major customer signings are expected in H2 and beyond
-- Strong back order book(2) maintained at GBP39.7m (H1 2021: GBP42.1m)
-- Adjusted earnings per share(5) up 62% to 18.6p (2021: 11.5p)
-- Net cash up 114% to GBP16.5m (31 March 2021: GBP7.7m)
-- Interim dividend up 24% to 2.6p (2021: 2.1p)
Operational
-- New team of experienced delivery resources established in Bulgaria
-- Major new deals signed with existing customers
-- The Board believes that the Group is well-positioned to deliver its full year targets
Louis Hall, CEO of Cerillion plc, commented:
"Our interim results set new records for revenue, adjusted PBT
and net cash across any six-month period, and demonstrate the
strong momentum in the business.
"We have made good operational progress in the period as well.
The new team we have established in Bulgaria is part of our push to
accelerate recruitment and diversify our talent base to meet
growing demand.
"We see excellent opportunities for continuing growth and the
new customer sales pipeline has grown significantly. Given the
Company's progress, and its strong financial and operational
position, we continue to view prospects very positively."
(1) Annualised recurring revenue includes annualised support and
maintenance, managed services and Cerillion Skyline revenue.
(2) Back order book of GBP39.7m consists of GBP32.7m of sales
contracted but not yet recognised at the end of the reporting
period plus GBP7.0m of annualised support and maintenance revenue.
It is anticipated that 75% of the GBP32.7m 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, Andrew Dickson, T: 020 3178 6378
CFO
Liberum (Nomad and Broker) T: 020 3100 2000
Bidhi Bhoma, Cameron Duncan, 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
22-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 Pune, Sofia and Sydney.
CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S REPORT
Overview
These are strong interim results, with revenue, adjusted PBT and
cash all at record highs for any six-month period. Revenue is up by
26% year-on-year to GBP16.1m (H1 2021: GBP12.8m), and annualised
recurring revenue at 31 March 2022 was 9% higher than a year ago at
GBP9.8m (H1 2021: GBP9.0m). Adjusted profit before tax rose by 65%
to GBP6.3m (H1 2021: GBP3.8m). Net cash at the end of March 2022
was up by 114% at GBP16.5m (31 March 2021: GBP7.7m).
These excellent results reflect the major implementation and
upgrade projects under way with new customers and strong flows of
business with existing customers, as well as an increased baseline
of recurring income.
Whilst major new orders were down year-on-year to GBP10.9m, from
a H1 2021 high of GBP23.6m, the value of the new customer sales
pipeline has increased significantly to GBP172m, up by 31%, and we
expect contract closures to come through in the second half and
beyond. This reflects the advanced stage of discussions with
certain potential new customers although, as ever, precise timings
of potential contract closures are hard to predict with certainty.
As our existing base of customers grows, the level of new orders
from existing customers continues to increase, and rose by 12% to
GBP10.9m (31 March 2021: GBP9.7m) in the period. This enabled a
strong back-order book to be maintained at GBP39.7m (31 March 2021:
GBP42.1m).
Having opened a new office in Sofia, Bulgaria, during the first
half, we built a team of experienced delivery resources, hiring 13
consultants. As well as providing us with a presence within the EU,
this growing new centre will help us to further diversify our human
resource base, enabling us to better manage the inflationary
pressures we are experiencing in our UK and India operating bases.
In addition to this, whilst the move to remote working due to the
COVID-19 pandemic has created some challenges, this change has
created more flexibility to source the best people, at the most
competitive rates, wherever they may be located.
Looking ahead over the balance of the current financial year, we
are very confident of continuing progress, supported by our strong
back-order book and new customer sales pipeline.
From a market perspective, we are seeing no let-up in investment
in 5G and broadband infrastructure, and we continue to see strong
opportunity for Cerillion, derived from the need to monetise those
new assets and trickle-down investment into the ancillary systems
that we provide.
Financial Overview
Revenue for the six months ended 31 March 2022 increased by 26%
to GBP16.1m (H1 2021: GBP12.8m), which reflected both the strong
back order book and ongoing major implementation projects, as well
as new orders from existing customers.
The mix of revenue was more weighted towards Services compared
to the prior period, with revenue from Services as a proportion of
total revenue at 63% (H1 2021: 51%), up 57% year-on-year to
GBP10.2m (H1 2021: GBP6.5m). Software revenue (from software
licence, support and maintenance sales) made up 31% of total
revenue (H1 2021: 46%), decreasing by 15% to GBP5.0m (H1 2021:
GBP5.8m). This mainly reflected the timing of software licence
recognition. Third-party revenue made up 6% of total revenue (H1
2021: 4%), doubling to GBP1.0m (H1 2021: GBP0.5m).
Gross margin for the period remained high at 78.5% (H1 2021:
78.6%). Whilst headcount increased in all regions to support
growth, recruitment efforts were focused on building resources in
India and in our new office in Bulgaria. This led to an overall
reduction in average cost per head (despite inflationary pressures
in the UK and India), which benefitted gross margin, offsetting the
impact from the change in revenue mix.
Existing customers (those customers acquired at least 12 months
before the end of the reporting period) continue to make up a high
proportion of the Group's revenue, as is typical, and generated 91%
of total revenue in the period (H1 2021: 71%).
Recurring revenue(1) , from support and maintenance and managed
service contracts, grew by 9% to GBP4.8m (H1 2021: GBP4.4m) and
accounted for 30% of the Group's revenue (H1 2021: 35%). As a
result of new customer deployments, support fee increments and an
increased uptake of managed services, annualised recurring revenue
at the end of March increased by 9% year-on-year to GBP9.8m (31
March 2021: GBP9.0m).
As expected, operating expenses increased in the period, but
only marginally, up 4% to GBP7.0m (H1 2021: GBP6.7m). This reflects
our close focus on cost control and favourable foreign exchange
rates, partly offset by higher travel and marketing costs, as
business returned to normal following the lifting of COVID-19
restrictions, and higher sales commissions.
Adjusted earnings before interest, tax, depreciation and
amortisation ("EBITDA"), which excludes share-based payments
charges, rose by 50% to GBP7.2m (H1 2021: GBP4.8m). Statutory
EBITDA increased by 48% to GBP7.1m (H1 2021: GBP4.8m).
Adjusted profit before tax(3) rose by 65% to GBP6.3m (H1 2021:
GBP3.8m) and adjusted earnings per share(4) was 62% higher at 18.6p
(H1 2021: 11.5p). Statutory profit before tax increased by 72% to
GBP5.7m (2021: GBP3.3m), and statutory earnings per share increased
by 69% to 16.4p (2021: 9.7p).
The balance sheet remains strong. Net assets rose by 34% to
GBP23.0m as at 31 March 2022 (31 March 2021: GBP17.2m).
Cash Flow and Banking
Net cash at 31 March 2022 increased by 114% to GBP16.5m (31
March 2021: GBP7.7m), with no debt in either the current or prior
period. Net cash generated from operations in the period rose by
145% to GBP6.5m (H1 2021: GBP2.7m).
Development costs of GBP0.5m were capitalised in the period (H1
2021: GBP0.5m) after investment to further enhance our intellectual
property.
Expenditure on fixed assets was GBP0.1m (H1 2021: GBP0.1m).
Free cash generation in the period increased by 184% to GBP5.9m
(H1 2021: GBP2.1m), which reflected the higher profit and an
overall reduction in working capital, partly offset by higher tax
payments. It was utilised to pay the final dividend of GBP1.5m (H1
2021: GBP1.1m) in respect of the year ended 30 September 2021.
Dividend
The Board is pleased to declare an increased interim dividend of
2.6p per share (H1 2021: 2.1p), a 24% rise year-on-year. The
interim dividend will become payable on 17 June 2022 to those
shareholders on the Company's register as at the close of business
on the record date of 27 May 2022 The ex-dividend date is 26 May
2022.
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
Demand from the existing customer base was very healthy over the
first half, with sales to existing customers up by 12% to GBP10.9m
(H1 2021: GBP9.7m). These sales included licence expansions, scope
expansions on implementation projects, upgrades, and new managed
services agreements. The new customer sales pipeline grew strongly,
up 31%, to GBP172m as at 31 March 2022 (31 March 2021: GBP131m),
and we expect to close new customer orders in the second half and
beyond.
Buoyant sales to existing customers have maintained the back
order book at a very healthy level of GBP39.7m at 31 March 2022 (31
March 2021: GBP42.1m). These contracted (but not yet recognised)
sales will drive revenues over the coming quarters. It is
especially encouraging to see the Group's base of recurring revenue
increase. Reflecting the growth in the business and specifically
the growth in managed services and support and maintenance,
annualised recurring revenue rose by 9% year-on-year to GBP9.8m (H1
2021: GBP9.0m).
The BSS/OSS 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,
mainly so as to drive more revenue from this network infrastructure
investment. We offer all major modules in customer management and
experience as well as all major modules in revenue management and
monetisation. In order to maintain our attractive competitive
positioning, we continue to invest in R&D to 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 the year to provide two major
software releases. We completed the first, Cerillion 22.1, 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 further capabilities and also
launches a new set of out-of-the-box solution configurations, which
address discrete telecoms market segments. The second release is
well under way.
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. In addition to this, we established our new skill
centre in Sofia, Bulgaria, opened in September 2021, and intend to
invest further in the team.
Working patterns remained affected by the global pandemic. In
the London, staff returned to the office on two core days each
week, with the option to be office-based on additional days where
necessary. This combines the benefits of office-based interaction
with the efficiency gains derived from working from home, and also
recognises that greater flexibility is now a key differentiator in
the employment market. In India, where the Group's other main
operating base is located, most staff are continuing to work
remotely, in line with the trend in that market.
Outlook
The business has continued to make strong progress and remains
very well placed in a growing marketplace where our 'productised'
approach stands out and the quality, breadth and completeness of
our solutions provides us with strong competitive differentiation.
In February 2022, we were pleased to announce that we had been
included in two major industry reports by Gartner(5) , both
considered to be highly authoritative guides for communication
service providers. Cerillion was one of only ten companies to be
included in both reports, and over 20 companies were assessed for
each report.
Looking over the remainder of the financial year, with existing
major implementation projects, the healthy back-order book, strong
new customer pipeline and advanced new customer contract
discussions, Cerillion is well-positioned to achieve its full year
targets.
The Company's robust balance sheet, which carries no debt, and
the significant increase in recurring income, provides further
strong underpinning for future growth. The Board therefore remains
confident of growth 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 Cerillion Skyline revenue.
(2) Back order book of GBP39.7m consists of GBP32.7m of sales
contracted but not yet recognised at the end of the reporting
period plus GBP7.0m of annualised support and maintenance revenue.
It is anticipated that 75% of the GBP32.7m 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 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.
Gartner Disclaimer:
(5) 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 reports referred to above are Gartner "Market Guide
for CSP Customer Management and Experience Solutions" By
Analyst(s): Juha Korhonen, Amresh Nandan, Chris Meering, Susan
Welsh de Grimaldo (published 31 January 2022), and Gartner "Market
Guide for CSP Revenue Management and Monetization Solutions". By
Analyst(s): Amresh Nandan, Chris Meering, Jouni Forsman (published
13 October 2021).
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 2022
GBP Consolidated Consolidated Consolidated
Unaudited Unaudited Audited
half year half year year to
to to 30 Sep 2021
31 Mar 2022 31 Mar 2021
Continuing operations
Revenue 16,139,723 12,808,391 26,070,815
Cost of sales (3,475,424) (2,745,730) (5,662,228)
Gross profit 12,664,299 10,062,661 20,408,587
Operating expenses (7,017,994) (6,720,161) (12,884,572)
Adjusted EBITDA* 7,248,378 4,819,689 10,515,283
Depreciation and amortisation (1,465,237) (1,459,119) (2,880,927)
Share based payment charge (136,836) (18,070) (110,341)
Operating profit 5,646,305 3,342,500 7,524,015
Finance costs (72,837) (87,378) (163,982)
Finance income 81,691 33,964 66,810
Adjusted profit before
tax** 6,288,411 3,803,572 8,530,014
Share based payment charge (136,836) (18,070) (110,341)
Amortisation of acquired
intangibles (496,416) (496,416) (992,830)
Profit before tax 5,655,159 3,289,086 7,426,843
Taxation (802,379) (422,960) (999,748)
Adjusted profit for the
period*** 5,486,032 3,380,612 7,530,266
Share based payment charge (136,836) (18,070) (110,341)
Amortisation of acquired
intangibles (496,416) (496,416) (992,830)
Profit for the period 4,852,780 2,866,126 6,427,095
Other comprehensive income
Exchange differences on
translating foreign operations 4,318 (120,707) (120,093)
Total comprehensive profit
for the period 4,857,098 2,745,419 6,307,002
All transactions are attributable to the owners of the
parent.
H1 2022 H1 2021 FY 2021
Basic earnings per share from continuing 16.4 pence 9.7 pence 21.8 pence
operations
Diluted earnings per share from 16.4 pence 9.6 pence 21.7 pence
continuing operations
Adjusted basic earnings per share
from continuing operations 18.6 pence 11.5pence 25.5 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 2022
GBP Share Share Share Treasury Foreign Retained Total Equity
capital premium option stock exchange earnings
reserve reserve
Balance at 1 October
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
Profit for the period - - - - - 3,560,969 3,560,969
Exchange difference
on translating foreign
operations - - - - 614 - 614
Total comprehensive
income - - - - 614 3,560,969 3,561,583
Share option charge - - 92,271 - - - 92,271
Purchase of treasury -
stock - - - - - -
Exercise of share options - - (66,905) 512,500 - (444,971) 624
Dividends - - - - - (619,783) (619,783)
Balance at 30 September
2021 (audited) 147,567 13,318,725 128,130 (25) (167,074) 6,778,120 20,205,443
Profit for the period - - - - - 4,852,780 4,852,780
Exchange difference
on translating foreign
operations - - - - 4,318 - 4,318
Total comprehensive
income - - - - 4,318 4,852,780 4,857,098
Share option charge - - 136,836 - - - 136,836
Purchase of treasury
stock - - - (827,424) - - (827,424)
Exercise of share options - - (45,548) 729,847 - (576,596) 107,703
Dividends - - - - - (1,475,674) (1,475,674)
Balance at 31 March
2022 (unaudited) 147,567 13,318,725 219,418 (97,602) (162,756) 9,578,630 23,003,982
Unaudited Condensed Consolidated Balance Sheet
as at 31 March 2022
GBP Consolidated Consolidated Consolidated
Unaudited Unaudited Unaudited Audited
Note 31 Mar 2022 31 Mar 2021 30 Sep 2021
Assets
Non-current
Goodwill 2,053,141 2,053,141 2,053,141
Other intangible assets 3,097,137 4,001,157 3,571,787
Property, plant and equipment 677,962 711,687 758,670
Right-of-use assets 3,366,921 4,044,525 3,705,723
Other receivables 5 2,681,008 1,616,440 2,015,422
Deferred tax assets 224,017 143,885 209,211
12,100,186 12,570,835 12,313,954
Current assets
Trade receivables 1,744,202 7,541,911 1,697,958
Other receivables 5 9,574,256 7,419,335 8,480,670
Cash and cash equivalents 16,514,236 7,709,248 13,174,471
27,832,694 22,670,494 23,353,099
Total assets 39,932,880 35,241,329 35,667,053
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 (97,602) (512,525) (25)
Foreign exchange reserve (162,756) (167,688) (167,074)
Share option reserve 219,418 102,764 128,130
Retained profit 9,578,630 4,281,905 6,778,120
Total Equity 23,003,982 17,170,748 20,205,443
Liabilities
Non-current
Other payables 427,708 - 394,850
Deferred tax liabilities 767,446 608,395 861,765
Lease liabilities 3,459,908 4,266,993 3,866,352
4,655,062 4,875,388 5,122,967
Current liabilities
Trade payables 384,893 1,089,645 490,055
Other payables 5 11,888,943 12,105,548 9,848,588
Borrowings - current - - -
12,273,836 13,195,193 10,338,643
Total equity and liabilities 39,932,880 35,241,329 35,667,053
Unaudited Condensed Consolidated Cash Flow Statement
for the six months ended 31 March 2022
GBP Consolidated Consolidated Consolidated
Unaudited Unaudited Audited
half year half year year to
to 31 Mar to 30 Sep 2021
2022 31 Mar 2021
Operating activities
Reconciliation of profit to operating
cash flows
Profit for the period 4,852,780 2,866,126 6,427,095
Add back:
Taxation 802,379 422,960 999,748
Depreciation 504,923 500,613 1,007,265
Amortisation and impairment 960,314 958,506 1,873,661
Share option charge 136,836 18,070 110,341
Finance costs 72,837 87,378 163,982
Finance income (81,691) (33,964) (66,810)
7,248,378 4,819,689 10,515,282
Increase in trade and other receivables (1,805,416) (4,531,431) (238,364)
Increase/(decrease) in trade and
other creditors 2,465,299 2,672,615 (84,435)
Cash from operations 7,908,261 2,960,873 10,192,483
Finance costs (72,837) (87,378) (163,982)
Finance income 81,691 1,464 66,810
Tax paid (1,433,596) (223,612) (293,076)
Net cash generated from operating
activities 6,483,519 2,651,347 9,802,235
Investing activities
Capitalisation of development
costs (485,664) (484,428) (970,212)
Purchase of property, plant and
equipment (85,473) (87,624) (301,686)
Net cash used in investing activities (571,137) (572,052) (1,271,898)
Financing activities
Borrowings repaid - (609,359) (609,359)
Purchase of treasury stock (827,424) (512,500) (512,500)
Receipts from exercise of share
options 107,703 625 1,249
Principal elements of finance
leases (400,253) (382,350) (764,416)
Dividends paid (1,475,674) (1,106,755) (1,726,538)
Net cash used in financing activities (2,595,648) (2,610,339) (3,611,564)
Net increase/(decrease) in cash
and cash equivalents 3,316,734 (531,044) 4,918,773
Translation differences 23,031 (71,575) (56,169)
Cash and cash equivalents at beginning
of period 13,174,471 8,311,867 8,311,867
Cash and cash equivalents at end
of period 16,514,236 7,709,248 13,174,471
Unaudited Notes
1. Basis of Preparation and Accounting Policies
The condensed financial information is unaudited and was
approved by the Board of Directors on 6 May 2022.
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 2022 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 2022 has been prepared under the historical cost
convention.
The interim financial information for the six months ended 31
March 2022 does not constitute statutory accounts within the
meaning of section 434 of the Companies Act. Statutory accounts for
the year ended 30 September 2021 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 2022 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 2022 . 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 2022. 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 GBP136,836 (6
months to 31 March 2021 GBP18,070) 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 2021
GBP496,416).
5. Other receivables and other payables
Unaudited Unaudited Audited
31 Mar 2022 31 Mar 30 Sep
GBP 2021 2021
GBP GBP
Other receivables - non-current
Amounts recoverable on contracts 2,611,053 1,616,440 1,945,671
Other receivables 69,955 - 69,751
2,681,008 1,616,440 2,015,422
Other receivables - current
Amounts recoverable on contracts 8,709,319 6,513,985 7,763,748
Prepayments 711,643 542,615 480,941
Other receivables 153,294 362,735 235,981
9,574,256 7,419,335 8,480,670
Other payables
Taxation 276,446 466,000 799,160
Other taxation and social
security 420,476 274,296 421,847
Pension 48,579 44,319 46,383
Accruals 2,781,213 1,740,393 2,339,143
Deferred income 6,952,966 8,153,878 4,775,174
Lease liability 953,901 929,135 947,710
Other payables 455,362 497,527 519,171
11,888,943 12,105,548 9,848,588
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 UPUWWAUPPGQQ
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May 09, 2022 13:09 ET (17:09 GMT)
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