Cerillion Plc · LSE:CER
Cerillion — H1 2024 Earnings Presentation
25 slides from Cerillion's earnings presentation, May 13, 2024
Slide 1: Cerillion plc Interim Results for the half-year to 31 March 2024
Cerillion plc Interim Results for the half-year to 31 March 2024 13 May 2024 1
Slide 2: Presentation Team
PRESENTATION TEAM Louis Hall Andrew Dickson Founder & CEO CFO ▪ Led the MBO of the original business ▪ Joined in 2022 from Logica plc in 1999 and the IPO of Cerillion in 2016. ▪ Over 20 years’ experience; early career at Deloitte LLP. ▪ Over 30 years’ experience in the software industry ▪ Previously
Slide 3: Key Highlights
KEY HIGHLIGHTS > Strong trading with new record highs across all major KPIs: > Revenue up 10% to £22.5m (H1 23: £20.5m) I adj PBT up 14% to £10.5m (H1 23: £9.2m) H1 New Orders (£m) 23.6 > Annualised recurring revenue up 14% to £15.0m (H1 23: £13.1m) > Net cash up 13% to £26.6m (H1 23: £23.6m) 20.2 >
Slide 4: Cerillion at a Glance
CERILLION AT A GLANCE Mission critical BSS/OSS1 software for the global telecoms market H1 2024 REVENUE c.80 customers across c.45 countries £22.5m (H1 2023: £20.5m) H1 2024 ADJ PBT £10.5m (H1 2023: £9.2m) c. 350 staff London, c. 110 India, c. 210 Sofia, c. 30 Revenue by Type Revenue by Region Custo
Slide 5: BSS/OSS - Monetising Network Infrastructure
BSS/OSS - MONETISING NETWORK INFRASTRUCTURE Business Support Operations Support Systems (BSS) Systems (OSS) Digital Engagement Planning Product Offerings Capacity Management Infrastructure Customers Sales Service Connection Network Work-Flow Work-Flow Customer Care Balance Management Billing Chargin
Slide 6: Cerillion Product Suite
CERILLION PRODUCT SUITE PRODUCT Dealer Portal INTEGRATION DOMAIN DOMAIN DOMAIN • Dealer Sales SALES CRM Plus Self Service • Omni-channel • Online Sales Mobile App • Lead & Opportunity Mgt • Account Management • Android / iOS Apps • Catalogue Management • Configure-Price-Quote (CPQ) • Service Managem
Slide 7: Product Solution Delivery Model
PRODUCT SOLUTION DELIVERY MODEL Software-as-a-Service MANAGED Pre-integrated BSS/OSS modules SERVICE SUPPORT Common product for all customers LICENSE End-to-end or modular delivery MODULAR PRIVATE CLOUD PUBLIC CLOUD ENTERPRISE Large transformation projects PRODUCT SUITE Cloud or on-premise deploymen
Slide 8: Global Customer Base
GLOBAL CUSTOMER BASE c.80 customers in c.45 countries 8
Slide 9: BSS/OSS Market Size
BSS/OSS MARKET SIZE BSS/OSS Market Size 80.00 70.00 60.00 “CSPs’ spending on OSS/ 50.00 BSS software and services will grow at CAGR of 3.5% USD bn 40.00 30.00 between 2021 and 2027 20.00 to exceed USD70 Billion” 10.00 0.00 2021 2022 2023 2024 2025 2026 2027 Year 9 Source: https://www.analysysmason.c
Slide 10: Competitive Landscape
COMPETITIVE LANDSCAPE Large ISVs1 Equipment Vendors Small ISVs1 SaaS/Best-of-Breed Independent Analysis OUR DIFFERENTIATORS OUR DIFFERENTIATORS OUR DIFFERENTIATORS OUR DIFFERENTIATORS ▪ Lower TCO2 ▪ Lower TCO2 ▪ Greater breadth/depth ▪ Lower TCO2 ▪ Shorter time-to-market ▪ Shorter time to market ▪ B
Slide 11: Barriers to Entry
BARRIERS TO ENTRY 20+ years R&D Access to the for a full suite right resources solution Investment Expertise BSS/OSS is A continually mission-critical moving target software Credibility Market Evolution 11
Slide 12: Sales Pipelines
SALES PIPELINES Prospective Customers Existing Customers 54 54 Unweighted (£m)1 254 Unweighted (£m) 1 51 212 172 33 32 131 28 120 101 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Prospective Customers Existing Customers 55 Weighted (£m) 1 Weighted (£m) 1 23 42 19 35 16 28 13 23 24 7 5
Slide 13: KPIs
KPIs H1 Revenue (£m) 20.5 22.5 H1 Adj PBT3 (£m) 10.5 H1 Net Cash (£m) 23.6 26.6 9.2 16.1 12.8 6.3 16.5 10.2 7.0 3.8 7.7 1.7 4.8 2.6 (0.2) 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 H1 New Orders 23.6 20.2 H1 Back Order2 (£m) Recurring Revenue 13.1 15.0
Slide 14: Operations
OPERATIONS > Product development: > 13,000 days of R&D planned for FY2024, 6,018 spent in H1 (H1 23: 5,130 days) Major transformation project for the main telecoms services > Launched AI support for creation of new products and workflows provider in Suriname > Major overhaul of Digital Experience we
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS £m H1 24 H1 23 New orders 20.2 15.3 ▪ Continued revenue growth with 5-year CAGR at 26% Back order book1 47.1 43.0 ▪ Recurring revenue up 17% to £7.6m (H1 23: £6.5m) Total revenue 22.5 20.5 driven by higher SaaS revenue Software2 12.4 10.5 ▪ High margins reflect high proportion o
Slide 16: Cash Generation
CASH GENERATION £m H1 24 H1 23 Adj. EBITDA 11.0 10.0 ▪ Increase in working capital, as expected, due to high proportion of software license revenue (Increase)/decrease in working capital (3.9) (2.2) Cash generated from operations 7.1 7.8 ▪ Higher tax payments partly offset by higher interest Capital
Slide 17: Summary Consolidated Income Statement
SUMMARY CONSOLIDATED INCOME STATEMENT1 Unaudited Unaudited H1 H1 (£’000) 31 Mar 2024 31 Mar 2023 ▪ High gross margin driven reflects continued high proportion Total revenue 22,516 20,497 of software licence revenue, partly offset by higher third party revenue Cost of sales (4,421) (3,790) Gross prof
Slide 18: Summary Consolidated Balance Sheet
SUMMARY CONSOLIDATED BALANCE SHEET Unaudited Unaudited (£’000) Consolidated 31 Mar 2024 31 Mar 2023 Non-current assets Goodwill 2,053 2,053 ▪ Increase in trade and other receivables mainly reflects Intangible assets (software higher accrued income balance, driven by licence 2,428 2,172 development)
Slide 19: Summary Consolidated Cash Flow Statement
SUMMARY CONSOLIDATED CASH FLOW STATEMENT Unaudited Unaudited H1 to H1 to Consolidated (£’000) 31 Mar 2024 31 Mar 2023 Operating cash flows before movements in working capital 11,020 10,017 (Increase) / decrease in trade and other receivables (5,258) (4,061) Increase / (decrease) in trade and other p
Slide 20: Summary and Outlook
SUMMARY AND OUTLOOK > Strong trading with new record highs across all major KPIs H1 Dividend Record (p) > Market demand remains strong 4.0 3.3 > Upgraded BSS/OSS provides operational and efficiency benefits 2.1 2.6 1.6 1.75 1.4 1.5 > SaaS/Product approach continues to gain traction over traditional
Slide 21: Supplementary Information
Supplementary Information 21
Slide 22: Board of Directors
BOARD OF DIRECTORS Alan Howarth Louis Hall Andrew Dickson Guy O’Connor Mike Dee Chairman CEO CFO Non-executive Director Non-executive Director Alan Howarth has extensive Louis Hall is the CEO and Andrew joined Cerillion as Guy is a co-founder of Mike Dee served as CEO of senior executive experience
Slide 23: Major Shareholders
MAJOR SHAREHOLDERS1 As at 19 April 2024 MAJOR SHAREHOLDERS % MAJOR SHAREHOLDERS % Louis Hall 30.45 WH Ireland, stockbrokers 1.15 Gresham House Asset Management 10.28 Goldman Sachs collateral account 1.13 Investec Wealth & Investment 6.47 Danske Bank Asset Management 1.06 Charles Stanley 5.36 Herald
Slide 24: Long-term Track Record
Long-term Track Record £m 39.2 32.7 26.1 20.8 17.4 18.8 18.1 14.8 16.0 13.3 14.0 13.8 10.5 4.6 5.8 2.8 2.9 3.1 3.6 3.9 FY2014 FY2015 FY2016 FY2017 FY 2018 FY2019 FY2020 FY2021 FY2022 FY2023 Revenue Adjusted EBITDA EBITDA and Adjusted EBITDA are non GAAP measures. Adjusted EBITDA is a company specifi
Slide 25: Capital Allocation Policy
CAPITAL ALLOCATION POLICY Maximising shareholder returns Organic growth Strategic Other Dividend policy investments considerations Continued Progressive dividend Strategic investments Maintain strong investment to: policy: to support longer term balance sheet to ▪ enhance offering growth support str