Although the share price plunge was not of the scale experienced this year by its near-namesake, Carillion, the 10% slide today to 129p means the shares have lost 18.7% since the company warned a month ago that results had been hit by currency fluctuations.
This morning’s interims revealed profit before tax tumbled to £472,231 in the half-year to March 31, albeit after an exceptional charge of £161,661, from £725,161 in the corresponding period a year earlier.
Adjusted underlying earnings before interest, tax, depreciation and amortisation (EBITDA) edged up to £1.60mln from £1.50mln the year before on revenue that rose to £8.39mln from £7.54mln. Recurring revenue rose 15% year-on-year to £2.5mln and now accounts for around 30% of total revenue.
At the end of the reporting period, the company’s net cash stood at £2.5mln, up from £1.1mln a year earlier.
The interim dividend was increased by 7% to 1.5p from 1.4p at the half-way stage of fiscal 16/17.
"We are pleased with the progress that the business continues to make. Half year results show increased revenue, and profitability in line with management expectations,” said Louis Hall, the chief executive officer of Cerillion.
“New orders were strong at £7.9mln and included a major new contract with Sure, a European telecommunications operator. Cerillion's inclusion in the 'Visionaries' segment for the second year running in Gartner's Magic Quadrant6 was also very pleasing,” he added.
"Looking ahead, our strong back order book helps to support revenue visibility, and the number and quality of the tender processes we are currently engaged in is very encouraging at this point in the year, and will underpin continuing progress towards the company's financial goals. We look forward to the future with confidence and believe that prospects for long-term growth remain very positive," Hall concluded.