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, boosting the back-order book to £82.1m, up 64% year-over-year.

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

• Profitability metrics fell: 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 and strong cash position.

• Strong customer retention and low churn, with 93% of revenue from long-standing customers.

Financial highlights

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

• Gross margin decreased to 75.8% (H1 2025: 80.6%) due to revenue mix.

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

• Adjusted EPS dropped to 14.1p (H1 2025: 23.9p).

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

Outlook and guidance

• Most software licence revenue and profitability expected in H2, supporting confidence in meeting full-year consensus expectations.

• Analyst consensus for FY 2026 profit before tax is £22.2m.

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

• New customer pipeline at a record £271m, supporting future growth.

• No reliance on new logo wins for 2026 numbers; larger pipeline opportunities could drive upgrades for 2027.