London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I had anticipated likely buying prior to the trading update. There have been a number of developments over the past months, which if all goes according to plan will feed more into current financial year performance rather than last, with more customers adding revenue/profit by migrating to managed services and uptake of new solutions in addition to ongoing cross-selling. This is a good start for them in relation to the LTIP, and I think Finncap will raise their current 125p target price in the not too distant future.
I also think finncap will upgrade their target price too.
Steady increase in revenues and profit with debt being reduced quickly to save interest.
P/E value of 16.4 vs industry average of 18.5
Nice steady share hitting target of 40% growth each year which is a fantastic achievement.
When the dividend comes in this year it will add more value.
Certainly one to keep holding and watch investment grow.
I expect an uplift in target price to account for the LTIP aspiration. Looking ahead at this calendar year, I'll just add their one of 10th. Jan to the last. I set FinCaps basic figures out in my post of 9th. March. I believe increasing the revenue forecast on 10th. January may be telling.We'll know a bit more next week if last timing followed.
Castleton Technology
Bolt-on acquisition adds customers and tech
Castleton has now started the year in style with a trio of positive events – after Monday’s announcement of a contract win and the first full solution suite go-live providing referenceability, today sees the the £1.8m acquisition of Deeplake Digital. Cambridge-based Deeplake provides digital customer communications between landlords and tenants, through SMS, email and social media in the housing sector using its own proprietary software, as well as adding 30 new customers to the Castleton Housing Association base. Castleton’s route to growth is being demonstrably delivered and we look forward to 2019 as a year to excel. Target 125p reiterated.
Castleton has acquired Deeplake Digital, a provider of complementary communications management software and the market leader for digital customer communicationtechnologyforlandlordandtenantcommunicationintheUK.
Deeplake has strong relationships with more than 90 Housing Associations, 30 of which will be new Castleton relationships (out of c600, of which Brixx accounts for about 360). Customer retention over ten years has been strong, and the addition adds further cross sales opportunities to the proven attraction of the solution suite.
Annualised revenue of £0.8m (80% recurring) led to £0.3m normalised EBITDA in the year to June 2018. We adjust FY19 and FY20 as shown below, expecting that calendar year 2019 will deliver the improved multiple which Castleton merits given the heartyfree cashflowandalreadystrongnewsflowtostarttheyear.
Telling in the sense we're on track in Jan and adding Deeplake, and expecting more this calendar year.