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Cerillion slides as currency movements dent first half profits

Underlying earnings would have been up by around 13% year-on-year in the first half of the software firm's financial year but for those pesky exchange rate movements
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The group is in the running for a number of significant contracts, which if successful, will underpin ongoing growth in the second half of the financial year and beyond

Shares in Cerillion PLC (LON:CER), the billing, charging and customer relationship management software solutions provider, dived after the company revealed a small fall in first-half profits.

The shares have been on a roll since the company announced a major contract win in December but profit takers moved in after the group revealed underlying earnings (EBITDA) in the six months to the end of March 2018 are expected to dip to around £1.4mln from £1.5mln the year before.

READ: Cerillion boosted by buoyant software revenue growth and improved margins​

The software house said the difference is mainly accounted for by adverse currency movements; on a constant currency basis, the company estimates that EBITDA was around 13% higher than the year before.

Revenue rose 12% year-on-year to around £8.4mln, in line with management expectations.

The mix of software revenue, services revenue and third party income returned to a more normalised weighting compared to the same period last year, which benefited from an exceptionally high level of software licence sales to existing customers, the group advised.

The shares were down 4.8% at 148.5p, giving up virtually all of the gains achieved in the year-to-date.

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