Software firm slips into the red following ‘challenging’ six months

Sutton Coldfield software and managed services firm Castleton Technology has slipped into the red after a “challenging” first six months of its financial year.

Revenues for the period were down by 10% to £11.6m, while the firm posted a loss of £200,000 – down from a profit of £500,000 in 2018.

Despite this, the company says is confident that revenue, EBITDA and cash generation will show a material improvement in the second half of the year.

David Payne, chairman of Castleton, said: “As reported at the group’s trading update on 10 October 2019, the first six months of FY20 has been challenging, particularly compared to the strong comparable period last year. This was primarily due to a decline in one-off revenues and the reorganisation of the business taking longer to embed than first anticipated.

“We have focussed our efforts on recurring revenue and building a strong future revenue base, and whilst this reorganisation has created short-term disruption, it will result in the streamlining of our sales and delivery functions. I am confident that this will stand the business in a strong position for the future, and I remain optimistic of the Group’s success and continued growth.”