Castleton Technology plc (AIM: CTP), the software and managed services provider to the public and not-for-profit sectors, announces its unaudited preliminary results for the year ended 31 March 2019.
- Revenue up 13% to £26.4 million (FY18: £23.3 million) of which 58% is recurring (an increase of £1.4 million over the prior year). Adjusted EBITDA* up 24% to £6.3 million (FY18: £5.1 million)
- Adjusted EBIDTA* margin increased to 24% (FY18 22%)
- Operating cashflow** up 25% to £6.5 million (FY18: £5.2 million)
– Post exceptional items at £6.1 million (FY18: £4.5 million)
- Operating cash conversion** of 103% (FY18: 101%)
– Post exceptional items at 97% (FY18: 88%)
- Total net debt reduced from £6.3*** million to £5.1 million
- Basic EPS of 5.08 pence (FY18: 5.23 pence).
- 50% of customers now taking more than one product or service, up from 40% in FY18
- Secured significant multi-year and multi-product contracts throughout the year, including:
– 4 year, £1.2 million contract with Dumfries and Galloway Housing Partnership (“DGHP”) for the provision of a full end-to-end managed service
– Subsequent £0.4 million contract to provide DGHP with a Unified Communications solution
– 5 year, £1.3 million contract with Connect Housing Association (“Connect”) for Castleton’s full suite of integrated software solutions
– Existing customer New Gorbals, who had the complete solution set, added one of Castleton’s newly launched solution’s, Asset Management
- Launch of Castleton.DIGITAL, a self-service customisable digital delivery platform
- Acquisition of Deeplake Digital Limited (“Deeplake”), provider of digital technology for landlord and tenant communication in the social housing sector, for cash consideration of £1.8 million
- Acquisition of Castleton India (previously known as CarbonNV InfoLogic India Private Limited) for a total consideration of £0.35 million. Castleton India, which has offices in Bangalore and Vadodara, India, previously provided additional development capability to the Group via a service agreement. The acquisition has enabled the Group to secure the additional development capability and skills within the company on a more permanent basis.
- Acquisition of exclusive and perpetual licence in relation to the platform upon which Castleton’s modelling solution is based, for £1.6 million in cash and shares.
Dean Dickinson, CEO of Castleton, 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.”
*Earnings for the year from continuing operations before net finance costs, tax, depreciation, amortisation, exceptional costs and share based payment charges.
** Pre-exceptional items
*** Excluding £1.6 million owed in respect of exercise of options held by MXC Guernsey Limited, as announced on 21 February 2018
The Annual Report and Accounts for the year ended 31 March 2019 will be posted to shareholders at least 21 days prior to the AGM.