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No surprises, which is what we have come to expect - just following the successful strategy based on cross selling into existing customers with lots of headroom there. But they are plainly looking to bring new products to market, and ensure they remain competitive by constant update of solutions -
"Our contracted backlog of revenue has grown 12% (Software Solutions) and 14% (Managed Services) year on year which gives us good forward visibility. We remain focused on product development with the aim of providing our customers with the technology and services they require to operate effectively and achieve their goals."
Cash conversion now at 102% - and the position for future growth summarised -
"The market opportunity remains large and given the Group's now established position as a 'one-stop-shop' serving the social housing sector, the Board is very optimistic about the Group's continued growth prospects."
I am a little surprised, but not disappointed re. the dividend, having regard to the wording -
" it is our intention to commence a progressive dividend policy for the full year."
I forgot. I said previously we should take particular notice of the PBT this time, as net profit was thrown out last full year due to credits applied, inflating the figure and EPS. I suggested something better might occur, but it is still a very healthy 170% odd increase on half year figures. And it is now confirmed cost base is stable going forward. And the £600k mobile payments will cease this year, and be available for the bottom line.
The dividend will come and for this full year, but I anticipated some dates with this RNS. But of no consequence.
It appears Kinetic is building through cross selling in Australia. I believe there are 50 or so customers there, so although it is a slow business, if Castleton is as successful as in the UK and ROI it will be a very useful addition to the contracted repeat, cumulative revenue and increasing profitability.
It's all good and well in line at least. Just waiting now to see what TechMarketView have to say. They generally do a nice little sensible summary. Then I'll have a listen to the company's recorded comments posted earlier.
Can't get into TechMarketView - not a subscriber but no previous probs. Oh well, so here's a summary - no opinion - from Shares Mag.
2018, 09:47Source - SMW
Software group Castleton Technology said Tuesday pre-tax profit doubled in the first half of the year through September supported by revenue growth in its software solutions and manged services businesses.
For the six months to 30 September, pre-tax profit more than doubled to £0.5m from £0.2m a year earlier and revenue grew 20% to £12.9m, while adjusted earnings (EBITDA) rose to £3.0m from £2.3m.
The uptick in revenue growth was supported by strong performance in the software solutions division which saw revenue grow 21%, and the managed services division, which delivered growth of 18% from a year earlier.
Recurring revenues of £7.0m represented 55% of total revenues, compared with 63% a year earlier, following strong professional services growth in the period of 44%, which led to a change in mix, the company said.
Looking ahead, however, the company forecast further growth in recurring owing to an increasing number of multi-year contracts recently entered into, as well as its success in selling products on a hosted basis.
'I am pleased with the progress the Group has made in the first six months of FY19, with the strong organic growth achieved demonstrating Castleton is delivering against its stated strategy. Additionally, new contract wins and the acquisition of the perpetual software licence in relation to the platform upon which Castleton's modelling solution is based further strengthens Castleton's position in the market and offering to customers, said Dean Dickinson, CEO of Castleton.
'The Board remains optimistic about the Group's success and is confident that the growth achieved during the period will continue as we further cross-sell into our customer base. Since the period end, the Company has successfully obtained approval for a capital reduction process which gives the Company the ability to make distributions to shareholders and it is our intention to commence a progressive dividend policy for the full year.'