As per today’s H1 trading update, CER expects to deliver £18.0m revenue (1H25: £20.9m) and £6.2m EBITDA (1H25: £9.9m) with the reduction driven by “very little high-margin software licence revenue being recognised in H1” (as compared to c.£2.5m in the comp). However, having signed the company’s largest ever contract (worth £42.5m) ‘new orders’ have circa doubled to £40m and hence underpins expectations of a very strong H2, both in terms of revenue and margins. CER also highlights that (despite converting a major prospect) its pipeline remains strong, though is not reliant on converting such opportunities to meet FY26 forecasts. As a result, CER make no change to its guidance and similarly, we leave our forecasts and Buy rec. unchanged. CER is trading on 26x FY26 P/E or potentially low-20’s if the company really ‘blows the doors off’ on margins this wouldn’t come as a massive surprise.
