Cerillion PLC (AIM:CER) shares jumped 8.7% after the company said it expects full-year profit to be “meaningfully” ahead of consensus forecasts after trading remained strong in the second half of the year.
Berenberg said the better-than-expected profit performance is "predominantly driven by a higher proportion of licence revenue in the period".
It has upgraded its financial year 2023 adjusted pre-tax profit forecast by 17% to £16.0 million.
The billing, charging and customer relationship management software solutions provider said the positive trading picture of the first half had continued through the second, including the signing of a £15.1 million new contract with an existing customer and completion of a major initial installation for Telesur.
As a result, adjusted pre-tax profit for the year to 30 September 2023 is expected to beat the consensus market forecast of £14.3 million.
Revenue is expected to be around £39.0 million, with sales to existing customers significantly greater than any previous year, reflecting the growing value of the installed base.
Net cash at 30 September rose to £24.7 million from £20.2 million before.
Cerillion said the new customer sales pipeline grew again in the second half and it therefore expects to make further encouraging progress over the course of the new financial year.