LONDON (Alliance News) - Castleton Technology PLC on Tuesday said it has traded "comfortably" in line with market expectations for the year ended March 31, as it grew its customer base and expanded its recurring revenue.
The software and managed services provider to the public and not for profit sectors said it generated adjusted earnings before interest, tax, deprecation and amortisation of GBP3.6 million for the year to the end of March. The adjusted earnings excluded net finance costs, depreciation, amortisation, integration and strategic costs, goodwill impairment and share-based payment charges, Castleton added.
The company said its underlying business and all acquired businesses performed in line with its expectations.
Castleton said there was strong growth in its recurring revenue base, primarily coming from the transition of its Managed Services division away from one-off project revenue to recurring revenue. Earnings before interest, tax, depreciation and amortisation grew 25% in this division.
Castleton added the focus of its Software Solutions division had been organic growth, which rose 20% on a year-on-year basis, reflecting the enlarged customer base of more than 600 customers across the group.
Castleton said it remained focused on exploiting the significant cross-selling opportunities presented by the expansion of the its customer base as well as the expanded portfolio of products and services built through acquisitions. Castleton made three acquisitions over the year, and said the integration of these acquisitions was substantially complete.
Castleton will report its full results years in early August.
"This has been a transformative year for the group, bringing together all the acquisitions we've made, consolidating our position as the only true 'one stop' proposition for our sector. We continue to see strong demand for the group's products and services," said Chief Executive Ian Smith.
Shares in Castleton were down 0.5% at 76.10 pence on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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