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 revenue1	£15.9m	£15.5m	+3%
Adjusted EBITDA2	£23.1m	£20.7m	+11%
Adjusted EBITDA margin	50.9%	47.4%	+350bps
Adjusted profit before tax3	£21.8m	£19.8m	+10%
Statutory profit before tax	£21.7m	£19.7m	+10%
Adjusted basic earnings per share4	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 cash5	£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 pipeline⁶ up 5% to a new high of £275m at 30 September 2025 (30 September 2024: £262m)

·   Very strong balance sheet with net cash⁵ 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 Louis Hall, CEO, Andrew Dickson, CFO		c/o KTZ Communications 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 revenue¹, 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 cash⁵ 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/OSS² 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/OSS² 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.

 

Gartner Disclaimer:

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

 

GARTNER and MAGIC QUADRANT are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 September 2025

			Year to 30 September 2025		Year to 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		-		394		(342)		34,990		48,508
	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		(688)		277		(470)		47,021		59,606

 

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 assets		25,072			25,339

 

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 in the United Kingdom of 25.0% (2024: 25.0%)	5,429	4,924
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 software licences		Total
		£'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 30 September 2024		2,053		-		-		2,582		44		4,679

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.