Cerillion's New Orders Double to £39.6m on Major Omantel Contract Win

Cerillion lands its biggest deal yet as new orders double to £39.6m

Cerillion has kicked off its financial year with a headline win: Omantel signed in January on a contract worth c. £42.5m over its term. That single deal helped new orders jump to £39.6m as at 30 March 2026, double the prior year. The software implementation is on track and management expects it to feed meaningfully into the second half.

On the flip side, the first half is a softer patch on reported numbers, reflecting timing rather than demand. With very little high-margin licence revenue recognised in H1, revenue and EBITDA were down year-on-year. The Board still expects to meet market expectations for the full year, backed by a very strong back-order book and more expected orders from existing customers.

Omantel deal: why this contract matters

Signing Omantel – a major operator and now Cerillion’s largest win to date – is a statement of intent. The contract is denominated in Omani Rials, with the RNS using a rate of 1 OMR to 1.93 GBP to show its c. £42.5m value. Beyond the revenue, Omantel is described as a valuable reference customer. That helps future sales conversations, especially with tier-one telcos that like to see proof at scale.

Crucially, implementation is on track and expected to contribute significantly in H2. For software vendors like Cerillion, revenue typically lands as projects hit delivery milestones. That makes the second half the one to watch.

First-half numbers at a glance

Metric	H1 2026	H1 2025	Notes
Revenue	c. £18.0m	£20.9m	Weighted to H2 due to timing
EBITDA	c. £6.2m	£9.9m	EBITDA is operating profit before interest, tax, depreciation and amortisation
New orders	£39.6m	£19.6m	As at 30 March 2026; excludes maintenance and support revenue
Net cash	c. £32.5m	£31.2m	As at 31 March year-on-year

The company reiterates that results are, like last year, expected to be strongly second-half weighted. Management points to the anticipated unwinding of a very strong back-order book – the signed work waiting to be delivered and recognised – as the support for that view.

Revenue mix and the H2 skew explained

Two moving parts shaped H1. First, the timing of project milestones meant less revenue was recognised. Second, as flagged, there was very little high-margin software licence revenue in the period. Licence revenue typically drops through at stronger margins than services, so the absence of it magnifies the H1 EBITDA dip.

The expected H2 catch-up hinges on delivery. As projects progress – including Omantel – Cerillion should convert back orders into recognised revenue and cash. That is the substance behind the Board’s confidence in meeting market expectations for the year.

Cash remains a comfort blanket

Net cash at c. £32.5m is up year-on-year. That gives Cerillion room to keep investing in product and delivery capacity while managing large implementations. It also reduces financing risk if milestones shift a little left or right on the timeline.

Outlook: management still targeting market expectations

The Board says Cerillion remains well-positioned to meet market expectations for FY26, helped by the second-half income mix and anticipated new orders from existing customers. The pipeline of new business opportunities remains strong, and the company continues to invest to support growth.

Investors will get more colour on 1 June 2026 when interim results are published. Key updates to look for: how much back-order has unwound, the pace of licence recognition, and any incremental wins on top of Omantel.

My take: a classic timing wobble, backed by a standout win

There are two headlines here. The positive one is big: new orders have doubled and Omantel is Cerillion’s largest deal to date, with implementation already underway. The more cautious one is that H1 revenue and EBITDA are down, which may spook headline readers but looks like mix and timing rather than demand weakness.

For me, the mix of a strong order intake, high net cash and a clear H2 delivery runway is constructive. The company’s comments about meeting market expectations are helpful, though the proof will be in milestone delivery and licence recognition over the next five months.

Positives I’m watching

• Record-scale validation: Omantel is a powerful reference and should support future enterprise sales.
• Order momentum: new orders at £39.6m suggest healthy demand from both new and existing customers.
• Cash strength: c. £32.5m net cash provides resilience and investment firepower.
• Backlog visibility: a very strong back-order book underpins the H2 weighting.

Risks and watch-outs

• Execution risk: the H2 outcome depends on delivering project milestones on time, including Omantel.
• Revenue mix: limited H1 licence revenue hurt margins; if licence timing slips, EBITDA could stay softer.
• Currency presentation: the Omantel contract is denominated in OMR. GBP values use 1 OMR to 1.93 GBP, so reported sterling can move with FX.

Who is Cerillion? Quick background for context

Cerillion provides mission-critical billing, charging and CRM software, mainly to telecoms. It has around 70 customer installations across about 45 countries. The business is headquartered in London, with operations in India and Bulgaria and a sales presence in Continental Europe, the USA, Singapore and Australia. It was originally part of Logica plc and joined AIM in March 2016.

What to watch next

• 1 June 2026 interim results: detail on H2 phasing, licence revenue, and margin trajectory.
• Implementation milestones: confirmation that Omantel and other large projects are progressing as planned.
• Order flow from existing customers: management is expecting more – evidence of that would reinforce the H2 story.
• Cash trend: whether net cash continues to build as back orders convert.

Bottom line

This update reads like a set-up for a stronger second half rather than a change in trend. The Omantel win is the difference-maker, both financially and as a reference. If Cerillion executes on delivery and licences drop through as flagged, meeting market expectations looks achievable. The upcoming interims will be the key check-in.