Cerillion boosted by $11.1m contract to supply 5G companies in Africa
- Cerillion said the deal will initially run for five years and be worth $11.1m
- It noted the customer serves the B2B and B2C markets across southern Africa
Cerillion shares rose on Monday after the software firm won a large contract and revealed record half-year results.
The London-listed group said the deal with the unnamed ‘leading provider of connectivity solutions’ will initially run for five years and be worth $11.1million.
It told investors the customer serves the business-to-business and business-to-consumer markets across Southern Africa with technologies ranging from fibre to satellite, microwave, and 5G standalone.
Outlook: Louis Hall, chief executive of Cerillion (pictured), said the firm is ‘well-placed to deliver market expectations for the full year and beyond
Cerillion unveiled the agreement alongside interim results showing its sales, profits and cash reached its highest ever levels in the six months ending March 2024.
Turnover increased by 10 per cent to £22.5million, driven by a healthy volume of major implementation projects and rising software demand offsetting a decline in services revenue.
Adjusted pre-tax profits jumped by 14 per cent to £10.5million, while cash grew by 13 per cent to £26.6million.
Over the same period, the London-based company boosted its new orders by almost a third to £20.2million, primarily due to winning a €12.4million contract with a ‘Tier-1 customer’ in Europe ‘to support all fixed and mobile services’.
Cerillion anticipates achieving its annual market forecasts, owing to a significant back-order book, new business pipeline and current projects.
Louis Hall, chief executive of Cerillion, said: ‘With an ever-growing sales pipeline, increasingly strong demand amongst telcos for digital transformation via SaaS solutions, and some exciting innovation in our product suite, we expect to continue to grow strongly.
‘Given the company’s progress – including the major new contract announced today – and prospects, we believe it is well-placed to deliver market expectations for the full year and beyond, and we view the future with confidence.’
Hall started Cerillion in 1999 following the management buyout of the customer care and billing product arm of Logica, a now-defunct computer services consultancy.
The group offers billing, charging and customer management systems software to firms across sectors such as finance, utilities, healthcare, and telecommunications.
Cerillion shares were 1 per cent higher at 1,591.4p on Monday morning, meaning they have expanded by around 32 per cent over the past year.
