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I see on the website Castleton yesterday reminded us of their past success, as we just concluded the financial period and head towards interim trading update.
"Earlier this year, Castleton Technology Plc were named by the London Stock Exchange Group as part of the 1000 Companies to Inspire Britain. The report, in its fifth anniversary, celebrates of some of the fastest-growing, most dynamic SMEs and high-growth British companies, across multiple regions and business sectors.
To be included in the report, companies had to show consistent revenue growth over a minimum of three years, significantly outperforming their industry peers against SIC (Standard Industrial Classifications)."
"The purpose of the Capital Reduction is to create distributable reserves, which will allow the Company to make dividend payments at an appropriate time in the future."
19th. June 2018 "Given our confidence in future prospects, the Board intends to implement a progressive dividend policy during the current year."
Shares are trading comfortably and above £1 from the all-time high of 105. That is healthy, following as it does the large transactions seen recently at the prices stated. Looking ahead, shareholders will take a view on the trading update in early October, and the price will reset, and possibly again in November when greater detail is reported.
I commented on 3rd. and 4th. Sept. I expect no sea changes. Personally, if the Castleton model continues as previously and as foreseen by the board, and for other reasons, I believe growth and particularly profitability are likely to make an even stronger showing next financial year.
Dates for the diary are 24th.Sept and 23rd.Oct, after which the board will be free to be more specific about the dividend, but I do not expect that until Nov. results.
10000 seller. Being absorbed at the moment.
In passing, and of no new consequence to investors. Housing association market here to stay. Enough cash for housing will always be tight, hence the need to make savings and increase efficiency through technology.
https://news.sky.com/story/theresa-may-calls-for-end-to-social-housing-stigma-as-she-pledges-2bn-for-new-homes-11501775
As discussed before, I am of the view that Dean Dickinson will ensure that development work is ongoing to show Castleton embraces modern technology, keeping the products at the forefront of sector offerings and from an investors viewpoint competitive. He has said as much, and it is hand in glove with the infrastructure work being undertaken to promote sales in Managed Services. That I believe, will form most of the capital expenditure in the current financial year.
The share price is behaving itself.
Kestrel now has 171252 more shares than it had last holdings RNS on 20th. August. They buy and sell.
It'll be based on Kypera - operating in Australia and UK in housing and commercial sector on acquisition. That's where the 20years comes from
More on Castleton website on that. Not a contracted solution update it appears, but a substantially new product.
https://www.castletonplc.com/2018/09/14/here-comes-housing-2019/
I anticipatemore about that and other solutions with the interims, along with the dividend.
That is part and parcel of the partnership with Glantus, never announced in any RNS that I recall, but appeared on Castleton website and just a little press.
https://www.castletonplc.com/2017/12/12/castleton-glantus-partnership-announcement/
https://www.irishtimes.com/business/technology/irish-software-firm-glantus-joins-forces-with-castleton-technology-1.3326453
New launch yesterday
Joe Keating
@joekeating0
·22h
Today marks the launch of the
@CastletonTech
HousingBrixx Strategic Planning products embedded Data Analytics, powered by
@GlantusLtd
Pre-release training.
We’re hosting a series of internal HOUSING 2019 product launch sessions- the upcoming new version of Castleton Housing! Sales & Implementations staff will be learning about the new features ready for release to customers.
"It’s about tailoring the user experience for each customer, the software has the flexibility to do this & can be configured in any way required, create your own interface by tailoring the features available”- Gary Wheeler, Dev Manager for Castleton Housing 2019.
With the court date being on 23rd. October, looks sensible to release further details of dividend together with relevant results in early November, if last year's timescale followed.
In support of that, at that time in February MXCP held 25.4% of the company, with buyers needed and found.
There is no doubt in my mind though it's wrapped up in a certain way with other things that holding and potential investors brought pressure to bear earlier this year, when MXCP were paid off and all evergreen options removed.
We smaller investors rely upon the larger ones and their resources to hold managements to account, and where honesty prevails, in looking after their own interests they look after ours. In this case, those holding sway believe the new resolution to be sufficiently appropriate. A diverse range of major investors can therefore be of some importance - one of the reasons I prefer to see new investors buying in to the company.
Prearation for dividend, and finalising the pre-emption rights discussion on which there was previously some dissent from major shareholder(s).
Their bag again.
Not really. If you want to delve back into ancient history, and beyond recent Raleigh summary, matter for you I think. Recent RNSs are where we're at, last results on.
Hi guys, anybody been in CTP since it was originally REDstone?
I bought £20,000 of RED back in 2000@£3.15, (i believe).. then they crashed, after that I lost track. I know they changed name to Castleton, but i've got some letters, certs for Redcentric too.
Briefly.. can anyone give me a rough timeline of what happened? Doing my own research, but i'm still a lil baffled.
Any help appreciated!
Yes. Well, after all that I got limited options, and I'm holding.
The rest is their bag.
I have had to look at that, and am always ready to be corrected on these things. I believe I am right in saying we are a little better off than that, in respect of the original loan notes outstanding for Kypera. The original loan notes were £1.5m MXCP and £2m BGF. Mxcp were paid off during the current period. It therefore leaves the BGF - 5% interest rolled up into the loan, which will need paying by Feb. 2021, with Castleton permitted to settle Feb. 2019 on without dilution, and BGF able to convert at any time and in the money ( according to me ) today to the tune of say £570k on conversion, taking the rolled up interest into account. It is, as you know, all catered for as part of Castleton's debt. Without taking any other consideration into account, if I was BGF I would convert, now or later. If I was Castleton, I would want to prevent that. They will be talking to each other.
I have always had confidence in Dean Dickinson and the CFO.
I already get all that, with the profit planned to increase as a percentage of revenue. The benefit of much of it, including the one-offs, will have greater impact next financial year if all goes as planned. As previously discussed, there's also the BGF loan notes for Kypera to deal with at some stage, costing £125k minimum a year on the £2.5m outstanding. They'll have that in the mix too, with Castleton able to redeem January on.
Mr.Dickinson and staff will know the importance of keeping the contracts - we know from the sales meeting and from the Castleton Conference that ' from now on the customer will be at the centre of everything we do.' The LTIP should help in keeping the senior managers up to the mark. And Mr. Dickinson got £185k worth in here,( doubled his money ) with 2.4% in growth shares and other options. No longer evergreen, which was done away with when MXCP paid off, the better to appeal to investors, and backed up now by the future divi.
He's earning his options, which is I suppose what they're about.. Done well and sustained since he took over, and his pay is a relative pittance at £65k.
Incidentally, we now know that just under 3% of MXCP shares went to Old Mutual, but no idea of who had the other 4%. So I assume they went to holder(s) under 3%.,
It does not seem out of the way, does it.
That is revenue, but there are other matters when considering the bottom line of the future and the dividend.There is also the improvement of margins on individual products and overall.
I have frequently mentioned the Agile mobile agreement. Castleton has been paying £600k per year since April 2016. That will end in March 2019. £600k to the good going forward.
With Castleton Strategic Modelling ( formerly HousingBrixx ) Castleton has been paying £300k per year since May 2015. That ended in June. £300k to the good going forward.
Those are one-offs, but taken together are significant savings every year going forward compared to previous years, and are on top of further sales revenue and profit. Increase in margins.
Then there is the repeat revenue, subject to existing, multi year contract. "Recurring revenue represents 60.1% of total revenues (2017: 64.8%), the decrease in percentage terms due to the strong performance of non-recurring revenues, predominately implementation revenues, during the year." Excellent service has to be provided, and contracts retained, but they do not have to be resold. Increase in margins.
So increasing revenue is very important, and with 60% of the 700 or so customers only taking one of many Castleton products, sales penetration is still very low, and with continued success there is much more that may be achieved through cross-selling and subsequent lucrative migration to Managed Services, under contract. But profitability is in truth the bottom line, and that is what Dean Dickinson is working towards - increasing cumulative repeat revenue, thus increasing repeat profit, at improved margins.
On the matter of figures, the published 'expectation' for the current full year is £26.3m revenue. The revenue seems achievable, representing an increase of 13% with Castleton said to be targeting a minimum 10%. I pass on the rest. We shall know a lot more in October/November.
That must be a benefit. I am waiting to see what it pans out as. With things going as they are, and profitability rising, with a new push into Managed Services, and cost based stabilised and some regular costs dropping away, I thnk the next 18mths will be productive.
And the LTIP will not in the boards view have been set at unattainable levels, or it wold be counterproductive. They want to keep the best of .their staff.
We shall also get a full period from Kinetic, which will help a little - it was 4 months out of the last 12 month period.