OREANDA-NEWS. Cerillion plc, the billing, charging and CRM software solutions provider, is pleased to announce its intention to seek a quotation on AIM and details of the pricing of its initial public offering  ("the IPO") and associated successful fundraising of £10 million (gross) ("the Fundraising"). 

Dealings in the shares are expected to commence on 18 March 2016 and the Company's market capitalisation at Admission to AIM is expected to be £22.4 million. Shore Capital is acting as the Company's Nominated Adviser and sole Broker. 

Established in 1999 following a management buyout from Logica plc, Cerillion develops, installs and supports billing, charging and customer relationship management ("CRM") solutions, predominantly to the telecommunications market. The business has a global customer base, across 40 countries and its customers include Cable & Wireless, KDDI and MTN. 

KEY POINTS 

Cerillion is a leading provider of mission critical software for billing, charging and CRM

·     16 year track record in providing comprehensive billing and customer management solutions

·     Product suite is advanced, functionally rich and fully integrated

·     Principally serves the telecoms market but also utilities and financial services

·     75 customer installations across 40 countries 

Highly experienced management team

·     CEO, Louis Hall, led MBO from Logica plc in 1999

·     Headquartered in London, with 164 staff in total, including 79 in Pune, India 

Track record of profitable growth and strong cash generation

·     FY 30 Sept 2015: revenues of £14.0m, EBITDA of £2.9m and PBT of £2.1m

·     £8.5m cash generated over the last seven years

·     Company intends to declare a maiden interim dividend and pay out between a third to half of the  Group's free cash flow as dividends each year 

Clear growth strategy in markets which are expanding

·     Continued expansion within core telecoms market

·     Planned expansion in new geographies, initially US and Australia

·     Leverage newer products:

o  Real-time convergent charging solution

o  SaaS-based billing solution, Cerillion Skyline 

Overview of the Flotation

·     Placing price of 76p per share

·     Market capitalisation of £22.4m at Admission to AIM

·     Total fundraising of £10m (gross) (via a subscription for and placing of 13,157,895 new ordinary
 shares at a price of 76p per share) to facilitate flotation 

Louis Hall, Chief Executive Officer of Cerillion, commented: 

"Cerillion has established itself as a leading provider of billing, charging and CRM solutions to the telecoms industry, with a global spread of customers who rely on our solutions to provide this critical function. The Company's admission to AIM represents an important milestone for the business, helping to increase our profile and improve our market positioning.  

As we look forward, we intend to grow the business, principally organically, winning new customers for our core enterprise product suite. At the same time, we continue to innovate to meet the evolving requirements of our customers.  Our newer products, especially our convergent charging solution and our SaaS-based billing platform, reflect this level of innovation and open up further growth opportunities for the business."