Software company confident on full year performance

Software and IT business, Castleton Technology has said it remains on course to meet full year expectations as it looks to cement its position as a leading software provider to the social housing sector.

The Sutton Coldfield firm said it in its interims results statement that it had made significant progress in the six months to September 30.

The company, which provides software and managed services to the public and not-for-profit sectors, said it was optimistic for the full year after making a strong start to the second half.

“We will continue to concentrate on driving further organic growth across the group, whilst increasing profitability by providing more of our customers with our broader range of complementary services – and all the time building our core of repeat revenues,” it said.

“The group remains on course to meet market expectations for the full year and looks forward to continuing to build on the solid foundations in place, cementing Castleton’s position as a ‘one stop shop’ serving the social housing sector.”

The group generated revenue for the six months to September 30 of £10.8m (H1 FY17: £9.7m). Recurring revenues are more than 63% of total revenues, with further growth in recurring revenue expected due to the increasing number of multi-year contracts being entered into, as well as the success in selling products on a hosted basis.

Revenue in the Software Solutions division increased 14% and revenue in the Managed Services division by 7% when compared to H1 FY17.

The business generated adjusted EBITDA of £2.3m in the period (H1 FY17: £2.0m). Adjusted EBITDA for the Software Solutions division and the Managed Services division (pre central costs) increased 20% and 5% respectively when compared to H1 FY17.

Pre-tax profit reached £0.2m (H1 FY17: £0.04m).

David Payne, chairman of Castleton, said: “Current trading remains robust and in line with market expectations. As such, the long term prospects for the Group remain positive and we are confident that we have the foundations in place to significantly scale the business.”

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