REG - Cerillion PLC - Final Results
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RNS Number : 6301I Cerillion PLC 24 November 2025
AIM: CER
Cerillion plc
("Cerillion" or "Company" or "Group")
Final results for the year ended 30 September 2025
Strong earnings growth
Well positioned for FY26 - record back-order book and record sales pipeline
Cerillion plc, the billing, charging and customer relationship management
software solutions provider, presents its annual results for the 12 months
ended 30 September 2025.
Highlights
Year ended 30 September 2025 2024 Change
Revenue £45.4m £43.8m +4%
Recurring revenue(1) £15.9m £15.5m +3%
Adjusted EBITDA(2) £23.1m £20.7m +11%
Adjusted EBITDA margin 50.9% 47.4% +350bps
Adjusted profit before tax(3) £21.8m £19.8m +10%
Statutory profit before tax £21.7m £19.7m +10%
Adjusted basic earnings per share(4) 56.5p 52.2p +8%
Statutory basic earnings per share 56.3p 51.7p +9%
Total dividend per share 15.4p 13.2p +17%
Net cash(5) £34.4m £29.9m +15%
Financial highlights:
· Key financial performance measures reached new highs
· Adjusted EBITDA margin up to a record 50.9% (2024: 47.4%)
· Total new orders up 25% to a record £47.6m (2024: £38.1m)
· Back-order book up 21% to £56.9m (2024: £46.9m). This is made up of
£47.4m of sales contracted but not yet recognised (2024: £37.7m) and £9.5m
of annualised support and maintenance revenue (2024: £9.2m). It is
anticipated that c. 33% of the £47.4m will be recognised within 12 months,
helping to underpin the current financial year
· New customer sales pipeline(6) up 5% to a new high of £275m at 30
September 2025 (30 September 2024: £262m)
· Very strong balance sheet with net cash(5) up 15% to £34.4m (30
September 2024: £29.9m)
· Final dividend of 10.6p per share proposed (2024: 9.2p), bringing the
total dividend for the year to 15.4p per share (2024: 13.2p), an increase of
17%
Operational highlights:
· Record value of major new contracts signed:
- £25.3m of agreements, signed with an existing European customer, to
onboard its newly-acquired, tier-1 mobile base and to extend support, managed
services and the Evergreen programme for the existing bases; and
- $11.4m (£8.5m) contract signed with new customer, Ucom, a leading
provider of telecommunications services in Armenia.
· Two major new implementations completed for:
- Virgin Media in Ireland; and
- Paratus, a leading provider of connectivity solutions in Southern
Africa.
· Significant increase in R&D to support product development, as
reflected in the latest product release
· Continued investment in resource across geographies to support
ongoing growth
· Pipeline of new business opportunities stands at a record high and
includes substantial potential deals
· Cerillion remains well-positioned for further growth in FY26 and
beyond
Louis Hall, CEO of Cerillion plc, commented:
"We made significant progress over the financial year and I am delighted with
our two major new wins, which took new orders to a new high of £47.6m. These
new orders are further proof of the quality and strength of our offering.
"We continued to invest in the business to support future growth. In
particular, we increased R&D spend, focusing further on AI, and expanded
our resources in delivery, sales and marketing.
"Cerillion remains well-positioned and we enter the new financial year with a
record back-order book and exciting prospects in the new business pipeline.
The Company's very strong financial foundations support our growth plans and
we view future prospects with great confidence."
For further information please contact:
Cerillion plc c/o KTZ Communications
Louis Hall, CEO, Andrew Dickson, CFO T: 020 3178 6378
Panmure Liberum (Nomad and Joint Broker) T: 020 3100 2000
Bidhi Bhoma, Edward Mansfield, Shalin Bhamra, Freddie Wooding
Singer Capital Markets (Joint Broker)
Rick Thompson, James Moat, James Fischer T: 020 7496 3000
KTZ Communications T: 020 3178 6378
Katie Tzouliadis, Robert Morton
About Cerillion
Cerillion has a 26-year track record in providing mission-critical software
for billing, charging and customer relationship management ("CRM"), mainly to
the telecommunications sector but also to other markets, including utilities
and financial services. The Company has c. 70 customer installations across c.
45 countries.
Headquartered in London, Cerillion also has operations in India and Bulgaria
as well as a sales presence in Belgium, the USA, Singapore and Australia.
The business was originally part of Logica plc before its management buyout,
led by CEO, Louis Hall, in 1999. The Company joined AIM in March 2016.
Notes
Note 1 Recurring revenue includes support and maintenance, managed
service, Skyline and third-party hardware and hosting revenue reported in the
year.
Note 2 Adjusted earnings before interest, tax, depreciation and
amortisation ("EBITDA") is calculated by taking operating profit and adding
back depreciation & amortisation and share-based payment charges.
Note 3 Adjusted profit before tax is calculated by taking reported
profit before tax and adding back share-based payment charges.
Note 4 Adjusted basic earnings per share is calculated by taking
profit after tax and adding back share-based payment charges and is divided by
the weighted average number of shares in issue during the period.
Note 5 Net cash is made up of cash and cash equivalents.
Note 6 New customer sales pipeline is the total, unweighted value of
all qualified sales prospects.
CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S REPORT
Introduction
Cerillion has continued to make very pleasing progress, and in the year under
review we signed a record value of new orders at £47.6m. This is c.25% higher
than the prior financial year and included our most substantial win in the
Company's history to date, which was with an existing European customer to
on-board its newly acquired tier-1 mobile customer base. This composite deal,
agreed in two stages, is worth a total of £25.3m over five years. We also
secured a major new customer in Ucom, a leading provider of telecommunications
services in Armenia. This agreement, signed in the first half, is worth $11.4m
(£8.5m) over five years. Both wins represent important new references for us
and the full financial benefits will come through in the new financial year
and beyond. The Company's key financial metrics reached new highs. Revenue
increased to £45.4m (2024: £43.8m) and adjusted profit before tax rose to
£21.8m (2024: £19.8m), up 10% year-on-year.
As ever, we continued to invest in our technology and increased our overall
R&D spending in the year. Our focus was on AI tools and composable user
interfaces. The latest version of our software suite, Cerillion 25.2, launched
in October 2025, now enables customers to interact more effectively and
efficiently with their end customers using our new AI Agents. This long-term
programme of product evolution and improvement remains a major focus.
We also invested in our operational teams and made a number of senior hires in
delivery roles. In addition to this, we also expanded our sales and
marketing team, with new hires in the USA, Europe and Asia. Continuing to
invest in talent is important as we grow and develop the business.
The pipeline of potential new customer sales remains very strong and includes
some substantial opportunities. At the financial year-end the total,
unweighted value of this pipeline stood at £275m (2024: £262m), a new high.
We believe this reflects the strength of our technology and the ongoing
requirement for telecommunications providers to improve efficiencies, drive
flexibility and maximise the benefits of their investments in 5G and fibre
roll-out.
We enter the new financial year with confidence in Cerillion's growth
prospects. We have a record back-order book and the pipeline of potential new
business opportunities is substantial, with some exciting prospects. Backed by
a very strong balance sheet, with significant net cash, we believe that the
Company remains very well-positioned to make further progress in the new
financial year and beyond.
Financial Overview
Total revenue for the year to 30 September 2025 rose by 4% to £45.4m (2024:
£43.8m), which reflects the timing of contract wins. As is typical, existing
customers (classified as those acquired before the beginning of the reporting
period) accounted for a very high proportion of total revenue, generating 93%
of the overall result (2024: 85%).
Recurring revenue(1), which includes support and maintenance, managed service,
Skyline and third-party hardware and hosting revenue, increased by 3% to
£15.9m and comprised approximately 35% of total revenue (2024: £15.5m, 35%).
The Group's revenue streams are categorised into three segments: Software
revenue; Services revenue; and revenue from Other activities. Software revenue
principally comprises software licences (for both Cerillion and third-party
products), related support and maintenance fees, and managed services fees.
Services revenue is generated by software implementations and ongoing account
development work. Revenue from Other activities includes the reselling of
third-party hardware, hosting fees and rebillable expenses.
• Software revenue remained broadly unchanged at £24.4m (2024: £24.3m) with
higher revenue from Cerillion's own licences partly offset by lower revenue
from third-party licences. Software revenue accounted for 54% of total revenue
(2024: 55%).
• Services revenue increased by 7% to £19.0m (2024: £17.9m). This reflected
increases in both account development work for existing customers and in new
customer implementation fees. Services revenue comprised 42% of total revenue
(2024: 41%).
• Other revenue increased by 19% to £1.9m (2024: £1.6m) and comprised 4% of
total revenue (2024: 4%).
Gross margin was slightly ahead of the prior year at 81.5% (2024: 80.5%),
mainly reflecting higher day rates on key implementation projects, favourable
licence revenue mix and lower third-party costs.
Operating expenses increased only slightly to £16.7m (2024: £16.5m). The
rise resulted from higher headcount and inflation, offset by favourable
foreign exchange and higher capitalisation of development costs. Personnel
costs within operating expenses were 8% higher at £10.2m (2024: £9.5m).
Adjusted EBITDA for the year increased by 11% to £23.1m (2024: £20.7m),
driven by higher revenue, favourable foreign exchange and higher day rates on
key implementation projects. This also reflected a £0.3m tax credit for
R&D costs relating to the new, merged R&D expenditure credit scheme,
the benefit of which was shown within the tax line in the prior year. The
Board considers adjusted EBITDA to be a key performance indicator for
Cerillion as it adds back key non-cash transactions, being share based
payments, depreciation and amortisation.
Investment in new product development continued with a 34% increase in R&D
effort versus the prior year. The amount capitalised during the year was
£1.8m (2024: £1.3m) and the amount amortised was £1.1m (2024: £1.0m).
Expenditure on tangible fixed assets was £0.4m (2024: £0.2m). Operating
profit increased by 12% to £20.6m (2024: £18.4m).
Adjusted profit before tax rose by 10% to £21.8m (2024: £19.8m) and adjusted
earnings per share increased by 8% to 56.5p (2024: 52.2p). On a statutory
basis, profit before tax increased by 10% to £21.7m (2024: £19.7m) and
earnings per share increased by 9% to 56.3p (2024: 51.7p).
Cash Flow and Balance Sheet
The Group continued to generate strong cash flows and closed the financial
year with net cash(5) up by 15% to £34.4m (30 September 2024: £29.9m). This
was after £4.1m of dividend payments (2024: £3.5m). Total debt at the
financial year-end remained £nil (2024: £nil).
Dividend
The Board is pleased to propose a 15% increase in the final dividend to 10.6p
per share (2024: 9.2p). Together with the interim dividend of 4.8p per share
(2024: 4.0p), this brings the total dividend for the year to 15.4p per share
(2024: 13.2p), an increase of 17%.
The dividend, which is subject to shareholder approval at the Company's Annual
General Meeting on 19 February 2026, is payable on 24 February 2026 to those
shareholders on the Company's register as at the close of business on the
record date of 16 January 2026. The ex-dividend date is 15 January 2026.
Operational Overview
We completed two major implementations during the financial year. The first
of these was for Virgin Media Ireland, when in July 2025 we went live with the
mobile customer base. This project involved complex integration with a number
of upstream and downstream systems, utilising the Company's TM Forum Open
APIs, and close coordination with a large systems integrator team. We are
now working on an additional phase to migrate Virgin Media Ireland's
fixed-wire customer base, which we expect to complete in 2026. The second
implementation that we completed was for Paratus, a leading provider of
connectivity solutions in Southern Africa. This included integration with a
new, Nokia 5G mobile network to enable the introduction of mobile services.
We significantly increased our investment in R&D over and above last
year's level, with a 34% increase in effort, including an increased focus on
AI. The second of the two annual new releases of our product set, Cerillion
25.2, went live in early October 2025 and featured a new Model Context
Protocol ("MCP") Server and a powerful suite of AI Agents that brings
conversational intelligence to all aspects of a Communications Services
Provider's business.
The Billing Agent is at the heart of the new release and is the Company's
first fully featured AI Agent. It transforms the way in which Cerillion's
customers, and their end-customers interact with financial information, with
users now able to ask questions, explore insights and obtain clear
explanations about bills, payments and transactions through natural language
conversation. Customer service representatives can use it in call centres and
end-users may access it via our Self Service portal and Mobile App.
Our new suite of AI Agents represents an advance on our earlier AI Assistants
and facilitate intelligent, conversational experiences across all major
business domains. They include Sales Agent, Workflow Agent, Catalogue Agent,
and Promotions Agent. Each is focused on enabling users to manage complex
operations, streamline decisions, and arrive at outcomes faster, through a
natural, chat-based interface.
The new MCP Server powers our new AI Agents and provides a foundation for
multi-agent collaboration, with the AI Agents integrated with Cerillion's TM
Forum-certified Open APIs. This means that our customers have full flexibility
to build a connected AI ecosystem specifically tailored to their business
needs.
Cerillion 25.2 has also delivered a series of major platform enhancements that
further strengthen its position as the industry's most open and composable
BSS/OSS(2) suite.
The new Service Catalogue is a new module in our suite and is designed to make
it easier for customers to define and manage resource-facing services. It has
been built on the same publishing engine and lifecycle management framework as
our existing Enterprise Product Catalogue, which is used to manage
customer-facing products and promotions, and provides a unified approach to
configuration and governance, while operating independently to define how
services are fulfilled. Used together, the Enterprise Product Catalogue and
Service Catalogue seamlessly link product design and service fulfilment, and
therefore dramatically reduce the time for our customers to configure, test
and launch their new offerings.
Cerillion's Mobile App now uses the same composable technology framework
introduced with Cerillion's next-generation Self Service platform, enabling
customers to tailor features, user journeys and digital experiences to their
exact needs. The Mobile App may be used as a companion to Self Service or on a
standalone basis, providing maximum flexibility and utility across digital
channels.
The new release also launched a completely refreshed Interconnect Manager. It
has a new user interface and cloud deployment capability and delivers a more
intuitive experience. It also improves operational efficiency for managing
interconnect partner settlements, routing and billing.
In October 2025, the Company achieved its first two TM Forum Open Digital
Architecture Component Certifications. This is a key milestone in ensuring
interoperability and future-proofing for customers.
We are pleased to highlight the Company's inclusion in two Gartner reports
published in late August 2025; "Gartner's Magic Quadrant™ for AI in CSP
Customer and Business Operations"* and "Critical Capabilities for AI in CSP
Customer and Business Operations"**. We believe our inclusion in these reports
reflects our ongoing commitment to embed advanced AI into our BSS/OSS(2) suite
to help customers streamline operations, enhance the end-user experience and
accelerate innovation. Earlier in the year, Cerillion was also included as a
Representative Vendor in the "Gartner Market Guide for CSP Customer Management
and Experience Solutions", published in June, and in March, we were included
in the "Gartner Market Guide for CSP Revenue Management and Monetization
Solutions".
We were also delighted to be named as a Major Player in the "IDC MarketScape:
Worldwide Customer Experience Platforms for Telecommunications 2025 Vendor
Assessment" (doc # US52580525, August 2025). We see this as further evidence
of our growing profile in the industry.
The back-order book at 30 September 2025 stood at £56.9m (2024: £46.9m),
made up of £47.4m of sales contracted but not yet recognised (2024: £37.7m)
together with £9.5m of annualised support and maintenance revenue (2024:
£9.2m). We expect about 33% of the £47.4m contracted-but-not-yet-recognised
sales will be recognised within 12 months.
*Gartner Magic Quadrant for AI in CSP Customer and Business Operations, Pulkit
Pandey, Amresh Nandan, Will Rice, Mounish Rai, 26 August 2025
**Gartner Critical Capabilities for AI in CSP Customer and Business
Operations, Pulkit Pandey, Amresh Nandan, Will Rice, Mounish Rai, 26 August
2025.
Outlook
We continue to view the business's growth potential very positively. Our
subscription-based product is unrivalled in its approach, and we are pleased
with the progress we have made in advancing our offering and improving the
Company's profile in our marketplace. The two major wins we secured in the
year provide further proof points that will enhance our credentials to compete
for larger contracts in the future.
The back-order book, which is at a new high, continues to underpin revenue
visibility, and the new customer sales pipeline, also at a record level,
includes some very exciting and substantial opportunities, which are at
varying stages of the discussion process. We expect to make very good progress
over the new financial year and will continue to invest in the business to
support growth. Cerillion's very strong balance sheet, with its significant
net cash position and very robust cash flows, enables us to think ambitiously
and reinforces our continued confidence in the Company's prospects.
A M Howarth L T Hall
Non-executive Chairman Chief Executive Officer
Notes
Note 1 Recurring revenue includes support and maintenance, managed
service, Skyline and third-party hardware and hosting revenue reported in the
year.
Note 2 "BSS/OSS" refers to business support systems and operations
support systems.
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GARTNER and MAGIC QUADRANT are registered trademarks of Gartner, Inc. and/or
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permission. All rights reserved.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 September 2025
Year to Year to
30 September 2025
30 September 2024
Notes £'000 £'000
Revenue 2 45,358 43,751
Cost of sales (8,390) (8,549)
Gross profit 36,968 35,202
Operating expenses (16,655) (16,450)
Other income 324 -
Impairment losses on financial assets 3 (27) (340)
Adjusted EBITDA* 23,079 20,749
Depreciation and amortisation (2,410) (2,184)
Share-based payment charge (59) (153)
Operating profit 3 20,610 18,412
Finance income 4 1,295 1,392
Finance costs 5 (190) (110)
Profit before taxation 21,715 19,694
Taxation 6 (5,097) (4,433)
Profit for the year 16,618 15,261
Other comprehensive expense
Items that will or may be reclassified to profit or loss:
Exchange difference on translating foreign (128) (150)
operations
Total comprehensive income for the year
16,490 15,111
Earnings per share
Basic earnings per share - continuing and total operations 8 56.3 pence 51.7 pence
Diluted earnings per share - continuing and total operations
56.2 pence 51.5 pence
All transactions are attributable to the owners of the parent.
* Adjusted earnings before interest, tax, depreciation and amortisation
("EBITDA") is calculated by taking operating profit and adding back
depreciation & amortisation and share-based payment charge.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2025
2025 2024
Notes £'000 £'000
ASSETS
Non-current assets
Goodwill 9 2,053 2,053
Other intangible assets 9 3,320 2,626
Property, plant and equipment 567 546
Right-of-use assets 10 2,797 2,181
Trade and other receivables 11 13,282 8,082
Deferred tax assets 250 240
22,269 15,728
Current assets
Trade and other receivables 11 18,597 17,524
Cash and cash equivalents 34,399 29,850
52,996 47,374
TOTAL ASSETS 75,265 63,102
LIABILITIES
Non-current liabilities
Trade and other payables 12 (629) (605)
Lease liabilities 10,13 (2,369) (1,926)
Deferred tax liabilities (561) (604)
Provisions (191) (166)
(3,750) (3,301)
Current liabilities
Trade and other payables 12 (10,224) (10,420)
Lease liabilities 10,13 (942) (873)
Provisions (743) -
(11,909) (11,293)
TOTAL LIABILITIES (15,659) (14,594)
NET ASSETS 59,606 48,508
EQUITY ATTRIBUTABLE TO SHAREHOLDERS
Ordinary share capital 14 147 147
Share premium account 13,319 13,319
Treasury stock 14 (688) -
Share option reserve 277 394
Foreign exchange reserve (470) (342)
Retained earnings 47,021 34,990
TOTAL EQUITY 59,606 48,508
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 September 2025
2025 2024
Notes £'000 £'000
Cash flows from operating activities
Profit for the year 16,618 15,261
Adjustments for:
Taxation 6 5,097 4,433
Finance income 4 (1,295) (1,392)
Finance costs 5 190 110
Share option charge 59 153
Other income 6 (324) -
Depreciation 1,242 1,133
Amortisation 9 1,168 1,051
22,755 20,749
Increase in trade and other receivables (5,961) (4,936)
(Decrease)/increase in trade and other payables 522 (1,185)
Cash generated from operations 17,316 14,628
Finance costs 5 (190) (110)
Finance income 4 982 942
Tax paid (4,880) (4,253)
NET CASH GENERATED FROM OPERATING ACTIVITIES 13,228 11,207
Cash flows from investing activities
Capitalisation of intangible assets 9 (1,862) (1,303)
Purchase of property, plant and equipment (417) (207)
NET CASH USED IN INVESTING ACTIVITIES (2,279) (1,510)
Cash flows from financing activities
Purchase of treasury stock (1,384) (368)
Receipts from exercise of share options 64 269
Principal elements of finance leases 10 (949) (894)
Dividends paid 7 (4,131) (3,542)
NET CASH USED IN FINANCING ACTIVITIES (6,400) (4,535)
NET INCREASE IN CASH AND CASH EQUIVALENTS 4,549 5,162
Translation differences 0 (50)
Cash and cash equivalents at beginning of year 29,850 24,738
CASH AND CASH EQUIVALENTS AT END OF YEAR
34,399 29,850
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 September 2025
Ordinary share capital Share premium account Treasury stock Share option reserve Foreign exchange reserve Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2023 147 13,319 - 346 (192) 23,265 36,885
Profit for the year - - - - - 15,261 15,261
Other comprehensive expense:
Exchange differences on translating foreign operations - - - - (150) - (150)
Total comprehensive income - - - - (150) 15,261 15,111
Transactions with owners:
Share option charge - - - 153 - - 153
Purchase of treasury stock - - (368) - - - (368)
Exercise of share options - - 368 (105) - 6 269
Dividends - - - - - (3,542) (3,542)
Total transactions with owners - - - 48 - (3,536) (3,488)
Balance as at 30 September 2024 147 13,319 34,990 48,508
- 394 (342)
Ordinary share capital Share premium account Treasury stock Share option reserve Foreign exchange reserve Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2024 147 13,319 - 394 (342) 34,990 48,508
Profit for the year - - - - - 16,618 16,618
Other comprehensive expense:
Exchange differences on translating foreign operations - - - - (128) - (128)
Total comprehensive income - - - - (128) 16,618 16,490
Transactions with owners:
Share option charge - - - 59 - - 59
Purchase of treasury stock - - (1,384) - - - (1,384)
Exercise of share options - - 696 (176) - (456) 64
Dividends - - - - - (4,131) (4,131)
Total transactions with owners - - (688) (117) - (4,587) (5,392)
Balance as at 30 September 2025 147 13,319 47,021 59,606
(688) 277 (470)
NOTES TO THE ACCOUNTS
1 Critical accounting estimates and judgements and other sources
of estimation uncertainty
1 (a) Critical accounting estimates and judgements
The preparation of Financial Statements under IFRS requires the use of certain
critical accounting assumptions, and requires management to exercise its
judgement and to make estimates in the process of applying Cerillion's
accounting policies.
Judgements
(i) Revenue recognition
The Group assesses the products and services promised in its contracts with
customers and identifies a performance obligation for each promise to transfer
to the customer a product or service (or bundle of products and services) that
is distinct. This assessment is performed on a contract-by-contract basis and
involves significant judgement. The determination of whether performance
obligations are distinct or not affects the timing and quantum of revenue and
profit recognised in each period. Company specific factors considered for this
judgement include, but are not limited to, if the customer can benefit from
the software without accompanying professional services, hosting of the
system, bundling of services, stand-alone selling price and the availability
and acceptance by the customer of the same.
Estimates
(i) Revenue recognition
For contracts where goods or services are transferred over time, revenue is
recognised in line with the percentage completed in terms of effort to date as
a percentage of total forecast effort. Total forecast effort is prepared by
project managers on a monthly basis and reviewed by the project office and
senior management team on a monthly basis. The forecast requires management to
be able to accurately estimate the effort required to complete the project and
affects the timing and quantum of revenue and profit recognised on these
contracts in each period. Changes in assumptions in relation to project
percentage completed in terms of effort could result in a material change to
services revenue recognised in the financial year. A 3% increase/decrease in
the percentage completed could increase/decrease the Group's revenue by
approximately £1,526,000 (2024: £1,601,000).
1 (b) Other sources of estimation uncertainty
(i) Recoverability of trade debtors and accrued income
Management use their judgement when determining whether trade debtors and
accrued income are considered recoverable or where a provision for impairment
is considered necessary. The assessment of recoverability will include
consideration of whether the balance is with a long-standing client, whether
the customer is experiencing financial difficulties, the fact that balances
are recognised under contract and that the products sold are mission-critical
to the customer's business. Refer to notes 13 and 16.
(ii) Calculation of future minimum lease payments
The calculation of lease liabilities requires the Group to determine an
incremental borrowing rate ("IBR") to discount future minimum lease payments.
The IBR is the rate of interest that the Group would have to pay to borrow
over a similar term, and with a similar security, the funds necessary to
obtain an asset of a similar value to the right-of-use asset in a similar
economic environment. The IBR therefore reflects what the Group 'would have to
pay', which requires estimation when no observable rates are available or when
they need to be adjusted to reflect the terms and conditions of the lease.
2 Segment information
The Group is organised into three main business segments for revenue purposes.
Under IFRS 8 there is a requirement to show the profit or loss for each
reportable segment and the total assets and total liabilities for each
reportable segment if such amounts are regularly provided to the chief
operating decision-maker. There are no other material items that are
separately presented to the chief operating decision-maker.
In respect of the profit or loss for each reportable segment the expenses are
not reported by segment and cannot be allocated on a reasonable basis and, as
a result, the analysis is limited to the Group revenue.
Assets and liabilities are used or incurred across all segments and therefore
are not split between segments.
2025 2024
£'000 £'000
Revenue
Services 19,044 17,862
Software 24,372 24,259
Other 1,942 1,630
Total revenue 45,358 43,751
The following table provides a reconciliation of the revenue by segment to the
revenue recognition accounting policy. Revenue recognised on performance
obligations partially satisfied in previous periods was £28,621,000 (2024:
£25,079,000).
Accounting policies
Year ended 30 September 2025 (i) (ii) (iii) (iv) Total
£'000 £'000 £'000 £'000 £'000 £'000
Services 19,044
implementation fees 5,684 - - - 5,684
ongoing account development work - - 13,360 - 13,360
Software 24,372
initial licence fees 2,104 - - 329 2,433
sale of additional licences and licence renewals - 7,305 - 517 7,822
ongoing maintenance and support fees 8,636 - - 1,265 9,901
managed service and Skyline fees 4,216 - - - 4,216
Other 1,942 - - - 1,942 1,942
Total 45,358 20,640 7,305 13,360 4,053 45,358
Accounting policy descriptions:
(i) Sale of standard licensed products; (ii) Sale of additional licences and
licence renewals; (iii) Ongoing account development work; and (iv) Third-party
time, material works, licences and re-billable expenses
Accounting policies
Year ended 30 September 2024 (i) (ii) (iii) (iv) Total
£'000 £'000 £'000 £'000 £'000 £'000
Services 17,862
implementation fees 5,311 - - - 5,311
ongoing account development work - - 12,551 - 12,551
Software 24,259
initial licence fees 2,820 - - 355 3,175
sale of additional licences and licence renewals - 5,549 - 1,202 6,751
ongoing maintenance and support fees 8,507 - - 1,316 9,823
managed service and Skyline fees 4,510 - - - 4,510
Other 1,630 - - - 1,630 1,630
Total 43,751 21,148 5,549 12,551 4,503 43,751
(a) Geographical information
As noted above, the internal reporting of the Group's performance does not
require that the statement of financial position information is gathered on
the basis of the business streams. However, the Group operates within discrete
geographical markets such that capital expenditure, total assets and net
assets of the Group are split between these locations as follows:
UK & Europe MEA Americas Asia Pacific
£'000 £'000 £'000 £'000
Year ended/As at 30 September 2025
Revenue - by customer location 34,924 5,968 3,724 742
Capital expenditure 2,240 - - 1,502
Non-current assets 20,643 - - 1,626
Total assets 72,640 - 1 2,624
Trade receivables - by customer location 2,049 1,258 55 8
Accrued income - by customer location 14,879 8,625 1,499 -
Net assets 59,365 - - 241
UK & Europe MEA Americas Asia Pacific
£'000 £'000 £'000 £'000
Year ended/As at 30 September 2024
Revenue - by customer location 28,367 8,750 5,392 1,242
Capital expenditure 1,459 - - 51
Non-current assets 15,409 - - 319
Total assets 62,073 - - 1,029
Trade receivables - by customer location 3,618 560 12 6
Accrued income - by customer location 7,434 9,154 1,767 -
Net assets 48,463 - - 45
All revenue is contracted within the UK subsidiary Cerillion Technologies
Limited and therefore all revenue is domiciled in the UK & Europe segment.
Cerillion receives greater than 10% of revenue from individual customers in
the following geographical regions:
Operating 2025 2024
segment £'000 £'000
Customer
No. 1 Europe 13,094 9,346
3 Operating profit
2025 2024
£'000 £'000
Operating profit is stated after charging/(crediting):
Employee benefits expenses 18,011 16,929
Depreciation 1,242 1,133
Amortisation of intangibles 1,168 1,051
Research and development costs 645 673
Impairment losses on financial assets 27 340
Foreign exchange losses (298) 821
Operating leases 351 366
Fees payable to Cerillion's principal auditors:
- Audit of Cerillion plc's annual financial statements 25 25
- Audit of subsidiaries 157 145
- Non-audit services - other services - 22
Fees payable to associates of principal auditors:
- Audit of subsidiaries 14 10
Other costs 3,730 3,824
Total cost of sales, operating expenses and impairment losses on financial 25,072 25,339
assets
The impairment losses on financial assets relates to the provisions made
against the risk of non-recovery of receivables.
4 Finance income
2025 2024
£'000 £'000
Finance income:
Bank interest 982 942
Unwinding discount of contracts with significant financing component 313 450
1,295 1,392
5 Finance costs
2025 2024
£'000 £'000
Finance costs:
Interest and finance charges for lease liabilities (177) (88)
Other interest payable (13) (22)
(190) (110)
6 Taxation
(a) Analysis of tax charge for the year
The tax charge for the Group is based on the profit for the year and
represents:
2025 2024
£'000 £'000
Current tax expense - UK 4,908 4,266
Current tax - adjustment in respect of prior year (17) 40
Current tax expense - overseas 274 192
Current tax expense - total 5,165 4,498
Deferred tax charge/(credit) 76 (68)
Deferred tax - adjustment in respect of prior year (144) 3
Deferred tax credit - total (68) (65)
Total tax charge 5,097 4,433
(b) Factors affecting total tax for the year
The tax assessed for the year is lower (2024: lower) than the standard rate of
corporation tax in the United Kingdom 25.0% (2024: 25.0%). The differences are
explained as follows:
2025 2024
£'000 £'000
Profit on ordinary activities before tax 21,715 19,694
Profit on ordinary activities multiplied by standard rate of corporation tax 5,429 4,924
in the United Kingdom of 25.0% (2024: 25.0%)
Effect of:
Expenses not deductible for tax purposes 321 329
Other temporary differences 101 (42)
Foreign tax - other (47) (11)
Prior year tax adjustment (17) 40
Prior year tax adjustment - deferred tax (144) 3
Other permanent differences - relating to share options (208) (46)
Enhanced relief for research and development (338) (764)
Total tax charge 5,097 4,433
Periodically, the Group is subject to inquiries from tax authorities. There is
currently ongoing discussion with the India tax authority in relation to the
period 2021 to 2022. We firmly consider all Group submissions made to be valid
and fully supportable and accordingly no provision has been made. If
necessary, the Group will record the outcome of any discussion in the period
to which such resolution occurs.
Other income in the consolidated statement of comprehensive income relates to
a 20% taxable credit on qualifying research and development costs under the
new merged RDEC scheme, totalling £324,000. This item is treated as non-cash
within the consolidated cash flow statement, as it will discharge part of the
corporation tax payable by the Group for the year.
7 Dividends
(a) Dividends paid during the reporting period
The Board paid the final dividend in respect of 2024 of 9.2p per share, on 20
February 2025, and declared and paid an interim 2025 dividend of 4.8p (2024:
4.0p) per share on 20 June 2025. Total dividends paid during the reporting
period were £4,131,000 (2024: £3,542,000).
(b) Dividends not recognised at the end of the reporting period
Since the year end the Directors have proposed the payment of a dividend in
respect of the full financial year of 10.6p per fully paid Ordinary Share
(2024: 9.2p). The aggregate amount of the proposed dividend expected to be
paid out of retained earnings at 30 September 2025, but not recognised as a
liability at the year end is £3,127,000 (2024: £2,717,000).
8 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of Ordinary
Shares in issue during the year.
2025 2024
Profit attributable to equity holders of the Company (£'000) 16,618 15,261
Weighted average number of Ordinary Shares in issue (number) 29,544,824 29,516,958
Less weighted average number of shares held in Treasury (number) (32,197) (10)
Weighted average number of Ordinary Shares in issue (number) 29,512,627 29,516,948
Effect of share options in issue (number) 61,804 101,837
Weighted average shares for diluted earnings per share (number) 29,574,431 29,618,785
Basic earnings per share (pence per share) 56.3 51.7
Diluted earnings per share (pence per share) 56.2 51.5
9 Intangible assets
Group Goodwill Purchased customer contracts Intellectual property rights Software development costs External Total
software licences
£'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 October 2023 2,053 4,383 2,567 7,365 271 16,639
Additions - - - 1,257 46 1,303
At 30 September 2024 2,053 4,383 2,567 8,622 317 17,942
Additions - - - 1,751 111 1,862
At 30 September 2025 2,053 4,383 2,567 10,373 428 19,804
Accumulated Amortisation
At 1 October 2023 - 4,383 2,567 5,003 259 12,212
Provided in the year - - - 1,037 14 1,051
At 30 September 2024 - 4,383 2,567 6,040 273 13,263
Provided in the year - - - 1,134 34 1,168
At 30 September 2025 - 4,383 2,567 7,174 307 14,431
Net book amount at 30 September 2025 2,053 - - 3,199 121 5,373
Net book amount at 2,053 - - 2,582 44 4,679
30 September 2024
Amortisation has been included in operating expenses in the consolidated
statement of comprehensive income.
The carrying value of goodwill included within the Cerillion plc consolidated
statement of financial position is £2,053,000 (2024: £2,053,000), which is
allocated to the cash-generating unit ("CGU") of Cerillion Technologies
Limited Group. The CGU's recoverable amount has been determined based on its
fair value less costs to sell. As Cerillion plc was established to purchase
the CTL Group the fair value less costs to sell has been calculated based on
the market capitalisation of Cerillion plc less the estimated costs to sell
the CTL Group.
Using an average market share price of Cerillion plc for the year ended 30
September 2025, less an estimate of costs to sell, there is significant
headroom above the carrying value of the cash-generating unit and therefore no
impairment exists. The calculations show that a reasonably possible change, as
assessed by the Directors, would not cause the carrying amount of the CGU to
exceed its recoverable amount.
10 Leases
Group
This note provides information for leases where the Group is a lessee. The
Group leases offices in London and India, along with some IT equipment.
(i) Amounts recognised in the consolidated and company statements of financial
position
The consolidated and company statements of financial position show the
following amounts relating to leases:
Group
30 September 2025 30 September 2024
Right-of-use assets £'000 £'000
Properties 2,797 2,177
IT Equipment - 4
2,797 2,181
Group
30 September 2025 30 September 2024
Lease liabilities £'000 £'000
Current 942 873
Non-current 2,369 1,926
3,311 2,799
Additions to the right-of-use assets during the 2025 financial year were
£1,461,000 (2024: £535,000). There were lease disposals during the year with
net book value totalling £nil (2024: £nil).
(ii) Amounts recognised in the consolidated statement of comprehensive income
The consolidated statement of comprehensive income shows the following amounts
relating to leases:
2025 2024
Depreciation charge of right-of-use assets £'000 £'000
Properties 845 702
IT Equipment 4 4
849 706
Interest expense (included in finance cost) 177 88
Expense relating to short-term leases (included in operating expenses) 313 347
Expenses relating to low value assets that are not shown above as short-term 38 19
leases (included in operating expenses)
The total cash outflow for leases in 2025 was £1,126,000 (2024: £982,000).
11 Trade and other receivables and other contract balances
Contract balances
The following table provides information about receivables, contract assets
and contract liabilities from contracts with customers.
Group
2025 2024
£'000 £'000
Trade receivables 3,370 4,196
Contract assets 25,003 18,355
Contract liabilities (2,995) (3,527)
Contract assets are included in 'Accrued income' within trade and other
receivables and are composed of the current and non-current balances. Contract
liabilities are included in 'Deferred income' within trade and other payables.
Payment terms and conditions in customer contracts may vary. In some cases,
customers pay in advance of the delivery of solutions or services; in other
cases, payment is due as services are performed or in arrears following the
delivery of the solutions or services. Differences in timing between revenue
recognition and invoicing result in trade receivables, contract assets or
contract liabilities in the statement of financial position.
Contract assets refer to accrued income and arise when revenue is recognised,
but invoicing is contingent on other performance obligations or on completion
of contractual milestones. Contract assets are transferred to receivables when
the rights become unconditional, typically upon invoicing of the related
performance obligations in the contract or upon achieving the requisite
project milestone.
Contract liabilities refer to deferred income and result from customer
payments in advance of the satisfaction of the associated performance
obligations and relate primarily to prepaid support or other recurring
services. Deferred income is released as revenue is recognised.
Significant changes in the contract assets and contract liabilities balances
during the period are driven by the timing of income recognition and when
associated invoices are raised. Specifically, revenue recognised in the year
in relation to deferred income brought forward from prior years of £3,210,000
(2024: £4,439,000).
When certain costs to acquire a contract meet defined criteria, those costs
are deferred as contract assets. The total amount of deferred contract assets
(commission fees recognised in prepaid assets) are £125,000 (2024:
£242,000). The total amount of accrued costs to acquire a contract are
£686,000 (2024: £481,000).
The total amount of revenue allocated to unsatisfied performance obligations
is £47,446,000 (2024: £37,662,000). This balance is made up of c. 50%
managed service revenue and c. 50% services revenue. It is estimated that c.
33% of the total balance will be recognised over the next 12 months, with the
remainder over the following years thereafter. The average length of customer
contracts is 5 years (2024: 5 years) and the length of the longest contract
remaining is 8 years (2024: 9 years)
Current receivables Group
2025 2024
£'000 £'000
Trade receivables 3,370 4,196
Accrued income 11,896 10,273
Other receivables 1,494 759
Prepayments 1,837 2,296
18,597 17,524
Non-current receivables Group
2025 2024
£'000 £'000
Accrued income 13,107 8,082
Other receivables 175 -
13,282 8,082
The following is an ageing analysis of those trade receivables that were not
past due and those that were past due but not impaired. These relate to a
number of independent customers for whom there is no recent history of
default.
2025 2024
£'000 £'000
Group
Not past due 2,420 1,338
Up to 3 months 950 2,839
3 to 6 months - 19
Older than 6 months - -
3,370 4,196
Of the trade debt older than 6 months as at 30 September 2025, being £nil
(2024: £nil), cash of £nil (2024: £nil) has been received since the year
end.
12 Trade and other payables
Current trade and other payables Group
2025 2024
£'000 £'000
Trade payables 964 905
Taxation 1,257 1,297
Other taxation and social security 395 522
Pension contributions 70 61
Other payables 347 362
Accruals 4,196 3,746
Deferred income 2,995 3,527
10,224 10,420
Non-current trade and other payables Group
2025 2024
£'000 £'000
Other payables 629 605
629 605
The Directors consider that the carrying amount of trade and other payables
and provisions approximates to their fair values. The non-current other
payable above relates to provisions for gratuity and long-term bonuses within
the Indian subsidiary.
13 Borrowings and financial liabilities
Group
2025 2024
£'000 £'000
Current liabilities:
Lease liabilities 942 873
Non-current liabilities:
Lease liabilities 2,369 1,926
3,311 2,799
There are currently no other borrowings within the Group.
14 Ordinary Share capital
2025 2024
£'000 £'000
Issued, allotted, called up and fully paid:
29,546,558 (2024: 29,535,614) Ordinary Shares of 0.5 pence 147 147
The Ordinary Shares have been classified as Equity. The Ordinary Shares have
attached to them full voting and capital distribution rights. The Company does
not have any authorised share capital. During the year, the Company issued
10,944 new Ordinary Shares of 0.5 pence into Treasury Stock to be used to
satisfy the exercises of options under the SAYE Scheme.
At the year end there were 45,584 shares (2024: no shares) remaining in
Treasury Stock at an average cost of £15.09 per share (2024: £nil).
15 Annual General Meeting
The Annual General Meeting is to be held on 19 February 2026. Notice of the
AGM will be despatched to shareholders with Cerillion's report and accounts.
16 Preliminary Announcement
The financial information set out in the announcement does not constitute the
Company's full statutory accounts for the years ended 30 September 2025 or
2024, which have been delivered to the Registrar of Companies. The auditors
reported on those accounts; their report was unqualified; it did not draw
attention to any matters by way of emphasis without qualifying their report
and it did not contain a statement under s498(2) or (3) Companies Act 2006.
The audit of the statutory accounts for the year ended 30 September 2025 has
been completed and the accounts will be delivered to the Registrar of
Companies before the Company's Annual General Meeting and will be available on
the Company's website at www.cerillion.com. This announcement is derived
from the statutory accounts for that year.
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