Recently floated billing software supplier Cerillion (CER:AIM) isn't hanging about when it comes to keeping its new shareholders and other investors informed. Barely a month after joining the junior market out pops a fairly upbeat trading update showing very decent progress.
'We are pleased with the progress Cerillion has made in the first half, which included the company's successful admission to AIM,' spells out the firm's affable CEO, Louis Hall. 'The business has continued to trade well and we look forward to updating the market on our continuing progress when we present our first set of results in May,' he adds. A firm date has still to be arranged.
According to today's (22 April) news, earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 21% to £1.1 million on revenues up 11% to £6.9 million. That's a fine 15.9% EBITDA margin and it will be interesting to see if the company is capable of incrementally lifting that profitability rate as well as driving the top line. The market's positive reaction - the shares are up 5% to 116.5p today, compared to a placing price of 76p – suggest investors think so.
What will help with the latter, and maybe the former, is new business wins such as the previously announced $2.4 million contract (about £1.67 million at current FX rates) with an existing customer in the US.
For a bit more detail you can read SHARES web story from last month (here) but our back of note book calculations suggest that, if the company can reperat this sort of growth through the second half it would imply full year EBITDA of maybe £2.4 million on roughly £15.5 million of sales.
With no forecasts currently in the market (according to Reuters – presumably house analyst Shore Capital is only just coming out of blackout), this is useful ballpark figures to look out for.