Following the initial Services component (signed in May) Cerillion has announced the remaining contract components, with the same European customer - bringing the combined ‘expansion TCV’ to £25.3m over an initial five-year term. We expect a material licence contribution in FY25, thus providing additional visibility on existing forecasts (n/c to guidance) while an additional c.£2.5m of recurring revenue will boost longer term visibility. Being CER’s largest win to date, this win also continues the trend of signing increasingly valuable deals, showing how larger telcos are embracing Cerillion’s B/OSS stack, to reduce costs, drive operational efficiencies and improve customer experience. This trend is also benefitting CER’s financial profile, as larger deals have a greater ‘software weighting’ (almost 70% in this case) thus benefitting scalability, recurring revenue and CER’s margin profile. All told and especially in context of current sentiment we expect this deal to be very well received by the market.
