Cerillion (LON: CER), the AIM-listed billing and customer management software provider for telecoms operators, warned that full-year revenue will miss consensus after new and existing customers delayed or deferred software licence and upgrade orders. Shares fell as much as 16% intraday.
Shares were trading at 773.8p by late morning, down 12.6% from Friday’s close of 885p, after touching around 740p earlier in the session. That took the stock through the 880p 52-week low set on Friday, extending a decline that has left it down roughly 37% over the past year.
Cerillion had already flagged a heavy second-half weighting to FY2026 in its June interim statement. Today’s trading update confirmed that even with the second half running well ahead of the first, full-year revenue will land at £46m-£48m, below the £52.80m consensus. “The main reason for the shortfall is that some anticipated new and existing customer orders have been delayed or deferred. This included software licence expansions and upgrades,” the company said in its RNS statement.
The guidance implies an adjusted EBITDA margin, earnings before interest, tax, depreciation and amortisation, of 43-45%, down from 50.9% in FY2025, when revenue was £45.4m. That points to modest revenue growth at best alongside a meaningful margin decline. Panmure Liberum, Cerillion’s nominated adviser and broker, cut its price target to 1400p from 2000p, a 30% reduction, and trimmed pre-tax profit and earnings forecasts by 17%, while keeping its Buy rating.
Management insisted the shortfall reflects timing rather than lost business. “Major implementations are progressing, with the transformation project at UCom nearing completion and software installation having been completed at Omantel. The back-order book remains strong, the new customer pipeline remains healthy and the balance sheet is very robust,” the company said.
Whether the deferred orders convert into revenue, or mark a lasting break from Cerillion’s premium growth rating, will be tested when full-year results are published at the end of November.