Software firm wins £1m contract with housing group
Software and IT business Castleton Technology has secured a four-year, £1m managed service contract with existing customer Grand Union Housing Group.
The listed Sutton Coldfield-based firm, which supplies software and managed services to the public and not-for-profit sectors, will provide a number of multi-cloud hosting and unified communications services to strengthen operations within the organisation.
Simon Penaluna, IT director for GUHG said: “Grand Union Housing Group is excited to be working with Castleton to deliver its IT and network infrastructure in a way that sets us up for the future. This will enable GUHG to deliver further ambitions and our “Customer 2020″ strategy by allowing staff to work in an agile way on a platform of efficient, robust and resilient systems.”
Dean Dickinson, CEO of Castleton, said: “With our recent £1m investment to develop our data centre facilities, we are in a great position to fulfil our customer’s demands for robust, flexible and scalable multi-cloud platforms. This new project with GUHG absolutely demonstrates this capability and we benefit from a strengthened ongoing relationship with this forward-thinking organisation.”
Castleton also announced revenue and profit growth as it released its results for the year to the end of March.
Following its trading update in April, the group this morning confirmed that revenue was up 13% to £26.4 m (FY18: £23.3m) of which 58% is recurring (an increase of £1.4 m over the prior year), while adjusted EBITDA* was up 24% to £6.3m(FY18: £5.1m).
Dickinson said: “It has been another year of significant progress for Castleton, delivering strong organic growth at both revenue and EBITDA level underpinned by healthy cash generation. This has not only resulted in the continued reduction in net debt, but it has also enabled operational growth through the acquisition of Deeplake, the perpetual licence for our modelling solution, the launch of new digital solutions and expanded development capabilities with Castleton India.
“A number of milestone projects are now fully-live and operational with three early adopter sites for integrated solutions. These combined customer references have been a major contributor to us winning the new integrated solutions contract in January with Connect. The early adopters and this new contract demonstrate the strength of our proposition, our ability to cross-sell and the trust our customers have in our capabilities to deliver on their vision for complete digital transformation.”
