Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Cerillion slides as currency movements dent first half profits

Underlying earnings would have been up by around 13% year-on-year in the first half of the software firm's financial year but for those pesky exchange rate movements
Billing information
The group is in the running for a number of significant contracts, which if successful, will underpin ongoing growth in the second half of the financial year and beyond

Shares in Cerillion PLC (LON:CER), the billing, charging and customer relationship management software solutions provider, dived after the company revealed a small fall in first-half profits.

The shares have been on a roll since the company announced a major contract win in December but profit takers moved in after the group revealed underlying earnings (EBITDA) in the six months to the end of March 2018 are expected to dip to around £1.4mln from £1.5mln the year before.

READ: Cerillion boosted by buoyant software revenue growth and improved margins​

The software house said the difference is mainly accounted for by adverse currency movements; on a constant currency basis, the company estimates that EBITDA was around 13% higher than the year before.

Revenue rose 12% year-on-year to around £8.4mln, in line with management expectations.

The mix of software revenue, services revenue and third party income returned to a more normalised weighting compared to the same period last year, which benefited from an exceptionally high level of software licence sales to existing customers, the group advised.

The shares were down 4.8% at 148.5p, giving up virtually all of the gains achieved in the year-to-date.

View full CER profile View Profile

Cerillion Timeline

Related Articles

Rail car on a track
July 26 2018
The US has more than 1.5 million freight cars and Duos Technologies has found a faster and innovative way to safely maintain them
Dancing Sikh
April 12 2018
With 4bn tickets sold each year for Bollywood films, it is little wonder that India is taking an interest in GrooveME's hologram technology but that same technology can bring a bit of India to places such as Thetford
Virtual Reality headset
May 02 2018
The integration of the group's Apollo 11 experience into the Oculus Go launch package has seen its share price rocket up over 40%

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use