Full Year 2025 Cerillion PLC Earnings Call Transcript
Key Points
- Cerillion PLC (LSE:CER) achieved new highs across all key financial measures, with total new orders up 25% to around GBP48 million.
- The company reported a significant increase in EBITDA margins, reaching 50.9%, reflecting strong financial performance.
- Cerillion PLC (LSE:CER) completed two major implementation projects in 2025, including a Tier 1 environment with Virgin Media Ireland and a project in Southern Africa with Paratus.
- The company has expanded its sales team and increased R&D investment by 30%, focusing on AI to enhance customer service and operational efficiency.
- Cerillion PLC (LSE:CER) has a strong global presence, with a diverse customer base across 40 countries, and is well-positioned for future growth with a robust pipeline of potential deals.
- The market for BSS/OSS software is not fast-growing, with an annual growth rate of around 4%, which could limit rapid expansion opportunities.
- Cerillion PLC (LSE:CER) faces competition from larger companies offering more tailored solutions, which could impact its market share.
- The company's revenue growth was only 4% despite a 25% increase in new orders, indicating potential challenges in converting orders to revenue.
- There is a potential risk of lower margins in 2026 due to changes in license mix and increased investment in sales and delivery heads.
- The company's free cash flow conversion has been lower in recent years, partly due to the way license revenue is recognized, which could impact cash availability for future investments.
Thank you, everybody, for joining. So I'm just going to spend a couple of minutes talking about what Cerillion does, who we are, et cetera. For those of you who don't know the company or haven't heard from us before. I'll keep this brief because I appreciate that a lot of you know the company and have heard from us before.
So essentially Cerillion provides what we call BSS/OSS software to the global telecom market, to telcos all around the world. And that is to about 70 customers in, I think, 40 countries or something of that order. And in terms of what is BSS and OSS, essentially, BSS and OSS software is the enterprise software that sits between telecoms businesses, network infrastructure and their customers. So it's the software that enables telcos to monetize those network assets. And that involves, for example, defining the products that their customers are sold, onboarding those customers either through CRM or through customer self-service or through mobile apps, whatever.
Once those customers are onboarded connecting those
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