Cerillion on track to meet FY expectations after encouraging 2H

Cerillion said on Monday that it remains on track to meet market expectations for the year following an encouraging second half.

In a brief update for the year to 30 September, the customer relationship management software solutions provider said revenues were up 8% year-on-year to around £17.4m, while adjusted earnings before interest, taxes, depreciation and amortisation were up 9% to £3.9m.

Cerillion said trading in the second half of the financial year has been "very encouraging", well supported by new orders.

"The company is advancing with contract negotiations with major potential new customers, and its new business pipeline, including the range and quality of opportunities, remains very positive," it said.

Full-year results are due to be released towards the end of next month.

Shore Capital analyst Martin O'Sullivan said the results confirm a "strong" performance, in line with the brokerage's expectations.

"In our view, the shares offer investors an attractive balance of growth and income with a proven product and clear path to future revenue, profit, earnings and dividend growth," said O'Sullivan of the house stock.

"We see Cerillion benefiting from good trading momentum going into FY19, however, and we view prospects with confidence. We will therefore review our forecasts with the greater detail provided at the full year results next month. Healthy margins and growth and strong underlying cash conversion will continue to be defining characteristics."

At 1030 BST, the shares were up 4.1% to 152p.