Cerillion: Charging ahead in telecoms

October 2024

Disclosure: I don't own shares in Cerillion. At the time of writing, my portfolio consists of Applied Materials, Cadence Design Systems, Constellation Software, Fair Isaac, Fortinet, KLA Corp, Mastercard, Microsoft, MSCI, Novo Nordisk, NVIDIA and Visa.

History

Cerillion (LSE:CER) is a UK company listed on the UK's Alternative Investment Market (AIM), which is home to over 800 smaller UK companies. They provide mission-critical software as a service to telecommunications companies worldwide.

Cerillion business was initially part of the now defunct, once FTSE 100 company: Logica. Logica built bespoke billing solutions for a range of applications, which in 1980 included building a billing system for BT (British Telecoms). Louis Hall, the founder, CEO and largest shareholder (approx. 30%) led the management buyout of the original business from Logica in 1999. The company currently has a market capitalisation of £0.5bn. Louis sees his next key milestone being doubling this to £1bn. Something investors can certainly get behind.

Since floating in 2016, the company's shares have grown by over 2,100%. Louis Hall's puts this success down to the following philosophy:

"If you do what you say you're going to do and you then do better than you say you're going to do, then the market rewards that achievement".