CTP.L Share News (CTP)

LONDON (Alliance News) - Castleton Technology PLC on Tuesday said its profit rose in the first six months of its current financial year, helped by the increasing number of multi-year contracts.

The software and managed services provider said its pretax profit grew to GBP497,000 in the six months to the end of September from GBP184,000 reported for the same period a year ago, as revenue improved by 20% to GBP12.9 million.

Revenue in the Software Solutions division increased 21% and revenue in the Managed Services division rose by 18%, thanks to the increasing number of multi-year contracts and the company's success in selling products on a hosted basis.

In the first half, a total of nine financial modelling customers signed up to receive hosting of the software, Castleton said.

Administrative expenses came in higher year-on-year at GBP8.1 million compared to GBP6.7 million.

"I am pleased with the progress the group has made in the first six months of financial 2019, with the strong organic growth achieved demonstrating Castleton is delivering against its stated strategy," said Chairman David Payne.

"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," added Payne.

Castleton shares were trading 3.9% higher on Tuesday at 94.00 pence each.