Cerillion (CER) H1 2026 earnings summary

Executive summary

• New orders more than doubled year-over-year to £39.6m, driven by a record £42.5m Omantel contract, nearly twice the size of previous largest deals, boosting the back-order book to £82.1m, up 64% year-over-year.

• Revenue for H1 declined 14% year-over-year to £18.0m due to the timing of software licence revenue recognition, with most high-margin licence revenue expected in H2.

• Profitability metrics fell sharply: adjusted profit before tax down 41% to £5.5m, adjusted EBITDA margin at 34.5%, and adjusted EPS down 41% to 14.1p.

• Interim dividend increased by 15% to 5.5p per share, reflecting confidence in future performance.

• Net cash increased 4% year-over-year to £32.5m, supporting the dividend increase.

Financial highlights

• Gross margin decreased to 75.8% (down from 80.6% year-over-year) due to revenue mix.

• Recurring and annualised term license revenue grew 5% to £19.1m.

• Free cash flow was £0.5m, with positive cash generation despite revenue phasing.

• Adjusted EPS dropped to 14.1p (down 41% year-over-year).

• Net assets increased to £60.6m (up 18% year-over-year).

Outlook and guidance

• Management confident in achieving full-year expectations, with significant licence and service revenue recognition expected in H2.

• Analyst consensus for FY 2026 PBT is £22.2m.

• Sales pipeline reached a record £271m, up 4% year-over-year, supporting future growth.

• Omantel contract win opens further opportunities in the region and with larger telcos.

• Ambition to double the size of the business in the next 3-5 years.