Software giant Cerillion reported record full-year profits and revenues this morning amid an “extremely favourable” market backdrop.
The London-listed firm, which sells billing, charging and customer relations software to major communications providers, saw pre-tax profits rise 41 per cent in the 12 months to October, to a high of £16.8m.
Revenues jumped by a fifth to a record £39.2m, which Cerillion said was driven by “strong demand” from existing customers and “major new customer implementations.”
The group has seen buoyant demand for its products this year, with its new customer sales pipeline growing to an unprecedented £243m alongside a record £52.5m order book. Investors will be rewarded with a bumper 8p dividend, up from 6.5p in the prior year.
Louis Hall, chief executive of Cerillion, hailed “another year of strong growth and development.”
“The market backdrop remains extremely favourable. Numerous factors continue to drive telco investment in the enterprise software layer that connects their network infrastructure to their customers and allows them to enhance monetisation of their network infrastructure assets,” he said.
“Cerillion’s financial position remains very strong, supported by significant net cash, increasing levels of recurring income and strong cash generation. Together with a record back-order book and strong new customer sales pipeline, this leaves us confident about Cerillion’s growth prospects in the new financial year and beyond.”
Headquartered in London, Cerillion also has operations in India and Bulgaria. The AIM-listed business was originally part of the IT consultancy Logica, before chief Hall led a management buyout in 1999.
The company has continued to focus its expansion on new centres in Ahmedabad, Indore and Sofia. It recently signed a new £15.1m contract with a major European telecoms carrier.
Shares are up just over eight per cent in the year to date.