Software and managed services provider revenues up 13%
Castleton Technology the software and managed services provider to the public and not-for-profit sectors has announced its unaudited preliminary results for the year ended 31 March 2019 with revenue up 13% to £26.4m.
The upsurge in revenue has been attributed to 50% of customers now taking more than one product or service, up from 40% the previous year and the company, which has offices in Sutton Coldfield, secured significant multi-year and multi-product contracts throughout the year.
These include the launch of Castleton.DIGITAL, a self-service customisable digital delivery platform, a four-year £1.2m contract with Dumfries and Galloway Housing Partnership for the provision of a full end-to-end managed service and a £400,000 contract to provide Unified Communications solution a five-year, £1.3m contract with Connect Housing Association (“Connect”) for Castleton’s full suite of integrated software solutions.
As well as this, existing customer New Gorbals, who had the complete solution set, added one of Castleton’s newly launched solution’s, Asset Management.
It also includes three acquisitions of Deeplake Digital Limited provider of digital technology for landlord and tenant communication in the social housing sector, for cash consideration of £1.8m, the acquisition of Castleton India (previously known as CarbonNV InfoLogic India Private Limited) for a total consideration of £350,000, which has enabled the Group to secure the additional development capability and skills within the company on a more permanent basis.
There was also the acquisition of exclusive and perpetual licence in relation to the platform upon which Castleton’s modelling solution is based, for £1.6m in cash and shares.
“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,” said Dean Dickinson, CEO of Castleton.
“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.”
