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Cerillion slips to half-time loss but second half starts well

Revenue in the six months to 31 March of £7mln was down 17% year on year as a chunk of “encouraging” new business is expected to fall in the second half
The telecoms software group signed one of its largest ever deals this year

Cerillion PLC (LON:CER) slipped to a first-half loss but the telecoms sector software provider said it still expected to grow this year thanks to recent deals and others in the pipeline.

The AIM-listed group said revenue in the six months to 31 March of £7mln was down 17% year on year with a chunk of “encouraging” new business expected to arrive in the second half, including an US$8.3mln contract in the US signed in February and other deals worth more than £10mln in late-stage negotiations.

READ: Cerillion wins major contract from US telecoms provider

The company posted an adjusted loss before tax of £0.7mln reversed the adjusted profit of £0.7mln seen a year ago, with a loss per share of 2.45p versus earnings per share of 2.19p last time out. Buoyed by net cash growing to £2.6mln from £2.5mln a year ago, the interim dividend was upped by 7% to 1.6p.

Pointing to a pipeline of new business that has increased by a third, chief executive Louis Hall said: “Results in the first half reflect the timing of contract closures, and while results are below last year's level, we believe that the company remains well-positioned to deliver its full year performance targets.”

He said Cerillion’s product offering remains “very strong”, as shown by the securing of one of its largest contracts to date and being ranked among the ‘Visionaries’ for the third year in a row in Gartner’s latest Magic Quadrant report on business support system vendors.

"The second half has started well, and we look forward to continuing our track record of steady year-on-year revenue and earnings growth," Hall said.

In afternoon trading, shares in Cerillion were 0.4% lower at 141.50p. 

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