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and Connected Homes mentioned alongside recently released new solutions. Indications that Castleton has developed its offerings to a position where it is placed to take advantage of any future movement in that direction by customers. Castleton has sound developmental capability, and apparently considers itself ahead of the game.
Castleton Technology
@CastletonTech
·
37m
Discussing our #AI capability, digital is not just online and apps anymore, the connected home is becoming the norm and should be part of your #DigitalStrategy going forward
@jamesrmassey
#DigitalHousingConf #transformingservicedelivery we are ready for the future now, are you?
Whilst at the same time saving smaller associations from infrastructure costs.
That also is a hosted solution like .Digital, I believe a strategic move, pointing customers towards Castleton Managed Services.
being launched 1st. November.
"Castleton is looking forward to launching our new solution, developed specifically for Smaller Housing Associations’ at the Smaller Housing Associations’ Conference & Exhibition 2018!
We will be showcasing our new ‘Castleton Community’ solution and the rest of our products and services on our exhibition stand."
Being showcased tomorrow at Digital Housing Conference, where Castleton has a speaking slot.
as anticipated, putting Castleton in a position to announce dividend on 6th. November. Seems probable with EPS then announced, and no point in delay if to be implemented this year, as they said was the intention.
It is my opinion that Castletons recent technology developments and the previously announced capital expenditure on improving Managed Services architecture, and taking into account sales to delivery times, though operationally important in this second half, will likely improve figures to a greater extent next financial year, alongside the end of mobile licence payments. That may form the basis of the positive guidance in November.
With what we know they've been working on I think we're heading towards quite an interesting operational update at results time. And it's court next Tuesday for reduction of capital in time for divi announcement with results if they so choose. I think they will.
They seem very bullish about it. Not seen language like that about one of their products before. Eighteen months in the making, researching the needs of tenants, and no doubt with input from potential customers. Should know there's a market for it. Sort of thing they might have RNS'd, but we'll see what they say in November, and how it adds to revenue/profit. I hadn't picked up on the hosted only quirk and the particular significance of that.
All good stuff.
Thankyou for those posts. The last is very interesting, insofar that it is a bold step to declare there is nothing else like it on offer by other suppliers and that it is a game changer, in the knowledge that competitors would be quick to contradict if they could. I therefore take it to be something special.
It further demonstrates Castleton's foresight, and technical ability to equal and exceed the competition's offerings.
Housing Associations, and Local Authorities (with whom I believe Castleton currently has only a minimal footprint ) have to be seen to fall in line with Govt's digital by default agenda. This fits the bill completely.
From a sales perspective, the potential seems greater than other solutions, in that it will operate with legacy, and other systems and solutions from competitors and therefore provide an 'in' to the whole social housing sector, as well as at face value seemingly being a 'must have' for the existing 700 customers.
Strategically importantly, it is being marketed as a hosted only solution - another driver into Castleton Managed Services, for existing and new customers, which is known to be a key objective alongside the bread and butter cross selling.
And something more for November results outlook.
"Latest innovation from Castleton is set to change the social housing market". " A game changer "
"Nobody else is offering anything like this solution in the social housing marketplace,” James Massey concludes. “It is a completely different take on the flat representations of data we are used to, offering greater functionality, flexibility and interactivity. It has enormous potential and we will be putting great force and energy into driving it forward. Castleton.DIGITAL is an absolute game-changer – not only for us, but for the social housing sector.”
https://www.castletonplc.com/2018/10/18/lastest-innovation-from-castleton-is-set-to-change-the-social-housing-market/
Yesterday was full day session at DoubleTree by Hilton, Milton Keynes, a half yearly internal sales kicker event headed up by CEO Dickinson, promoting his ' One Castleton ' ethos of joint working.
There was a review of the year so far, and updates from Senior Managers on plans for the next 6 months. These include new products Castleton Community, Scheduler & .Digital, and new version releases of Agile Mobile, Housing, EDRM, CRM, and latest Managed Services offerings and new technology ( we know they were working that up )
Emphasis on working together and with the customer, to improve results for the customer and the company. Pretty basic really, but good that Mr. Dickinson keeps drumming it in.
Castleton updated list of major shareholders.
https://www.castletonplc.com/investors/major-shareholders/
material as part of push in Castleton Managed Services.
Castleton Technology
@CastletonTech
Exciting day here at CMS, filming interviews with our senior management team. Our thanks to
@DowningDunmore
and
@DualityFilmsUK
.
#ITinHousing #Enablingtransformation #ukhousing
No worries. Let’s see if the correction bounces soon. Pretty sure there’s some big support here. Monday maybe. Not over happy. Just in process of swapping pension funds and they’ve been dragging it out. Could get hurt.
Apologies 42Trader. That other one popped into my head. It's the numbers what done it.
2Crazy is right. Market correction. Mxc Smith said a while back that value getting harder to find.
It's also a fact that housing associations and the like have a requirement to use modern technology. And there is a very high, in fact I would say almost impossibly high, barrier to new entrants to Castleton's market, with the general picture being of a trend to multiple solutions from single suppliers and the smaller successful individual supplier being gobbled up by the larger ones. Of course, Castleton has to compete with them, but it's shown it can do so and gone from nothing to 700 or whatever customers. It's now well-established, working with it's customers already on the books ( the main driver, not new customers other than maintenance contractors )and with the cash available and developers on board to give them what they want.
The company is about as 'safe' as you can get, with good opportunity to turn a penny, I reckon.
It is not unusual, whichever way you look at it, and Castleton is not alone this week in falling tech stocks. Some may be overvalued. Unlike some, Castleton is paying it's own way - sufficient to pay a dividend. And looked at another way, the LTIP reflects board achievable aspirations and sets the senior employee target. Announced on 22nd. March 2018 it started at 68p and required 40% per annum over a 3 year period. Splitting it up, though the LTIP may not be framed exactly in that way, minimum 95.2 this financial year. They are now working on keeping to and improving that to achieve 133.28 and 186.59 over the following years for full vesting. FinnCaps 125 is consistent with that, which one would expect.
I shall be delighted if those aspirations are fulfilled, with Castleton continuing to meet it's own 10% year on year growth target.
I think its a general market sell off. This could be the start of a market re-rate. Happy to hold here though and if the market does re-rate then this will be one stock I will add to in the future.
Despite the good news, somebody decided to take the cash. Nuisance, but very unpleasantly I've seen that before here.
Good news continues at Castleton
Georgina O'Toole, 09:23, 09 October 2018
We'll have to wait another month for H118 results from Castleton Technology. But it looks like the company is continuing on the right track. Today’s trading update tells us that revenue and EBITDA have grown by more than 10% organically in the six months to end September. Other KPIs are also positive: with the cash conversion strong, net debt has fallen over the period from £6.3m to £5.3m.
It has been nothing but good news from this provider of software and managed services to the public and not-for-profit sectors of late. Having bought numerous companies over the years, Castleton has since been building on the position it’s created (see Castleton makes more progress), paticularly in the social housing sector. Now, a combination of new client wins and cross-sell/up-sell success is driving a strong performance.
As I said on 4th. September, the published 'expectation' for the current full year is £26.3m revenue. On the 'excess of 10per cent' Castleton is on track to achieve minimum £25.63m. of that. EBITDA has grown to £5.61m for the full year. PBT is estimated at £5.1m for the full year. We'll wait for the figures.
For the future, Castleton has a full range of fully integrated products now, with cross selling ongoing and oodles of depth remaining there amongst their 700 customers, and as we discussed have recently started concentrating on migrating those customers to managed services under longer contracts on the back of the referenceability from it's first full suite/managed services takers. There's a lot more mileage to cover than been done yet, and additional products being released, with the only major expenditure to come being on improving their own managed services infrastructure, and ongoing in-house and Indian development work running alongside to ensure speedy time to market.
Incidentally, I was reading that businesses are moving towards having single tech suppliers, for better integration and overall service, rather than struggling with disparate systems from a number of sources. Castleton seems well positioned to compete for that business.
I'm very happy with what we know so far, and see no reason why the sp can't follow the LTIP aspirations. See what they've got to say in November, about divi and more, including how things are going in Australia building on Kinetic ( just got our first full 6 months from them)
All good, looking forward.
The more than 10% organic growth is pleasantly in line with my expectation, meeting their own target and paying down debt, and I am content with it. I posted my thoughts on 3 Sept and now would be unsurprised to see say minimum £1m profit before tax. But we shall have to wait until November for the facts, and the EPS on which the intended dividend will be based. I anticipate announcement of payment of a dividend with results in November, if it is to be paid this year as intended.
Today proves the cumulative recurring revenue model continues to be successful, with either new customers coming on board and/or existing ones taking more products. Whatever it transpires to be this half, and predominantly selling into existing satisfied customers, profitability should continue to rise exponentially against increasing revenue, being £300k pa margin to the good from last June on anyway having acquired the Strategic Modelling licence, and receive a full £600k boost next financial year, when the mobile licence fees end, without a concluding additional payment now being required as previously reported.
With their model mitigating against surprises either way, none anticipated and none occurring ( proven competitive products, longer term contracts, acquisitions made and integrated, and debt being paid down ) Castleton should be poised for steady and more rewarding progress over the next 18months.