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By Malcolm Stacey | Thursday 12 July 2018
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Punters. I don't often commend techno/admin companies for your further examination, as they’ve cost me a lot of money over the years. But there is one such company which rather excites me at the mo. And that’s because it has released a very encouraging crop of numbers.
Cerillion (CER) is in the billing, charging and customer management game. And it’s making a very good fist of it. It’s also very experienced, being a millennium baby begun just before 2000. And talk about widespread. It operates in no less than 43 countries.
But back to those jolly numbers. In the six months ending in March, there was an 11% hike in income, resulting in an adjusted EBITDA up by 6%. And there was an improvement in back orders, too, to £15.4 million, compared to £14.7 million the time before.
Ok, that’s good, I hear you say, but not brilliant. However, the cash pile rose to £2.5 million. That compares to £1.1 million previously. Consequently, the half way dividend was upped by 7%.
The shares are currently trading at 168p. That’s the highest point for at least two years. But with strong cash backing, a higher divi and plenty of orders, I would suggest they’re worth nearer to £2.
My friends at top analysts VectorVest who know about charting, say the signals are good. I’m not a fan of this method, but you may be. They say: ‘The chart illustrates clearly a breakout of a trading range which is a very positive development for the company . . .’
Firms are not always especially good at managing their own customers by billing and charging them efficiently. They know it’s become a complex game often best contracted out to experts. And that’s why Cerillion could go from strength to strength.
Unlike the Punter’s Return.
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