LONDON (Alliance News) - Castleton Technology PLC on Friday said it intends to cancel its share premium account and create distributable profit.
As at March 31, Castleton had a GBP9.8 million deficit on its profit and loss account and had no distributable profit with which to fund share buybacks or make distributions. However, its premium account had an GBP18.8 million credit.
The software and managed services provider will, therefore, seek approval from its shareholders to cancel the premium account, eliminate the deficit, and make distributions.
A general meeting will be held in the last week of September, at which point shareholders will vote on the proposal. The premium cancellation is has the unanimous recommendation of Castleton's directors.
Shares in Castleton Technology were down 1.4% at 101.06 pence on Friday.