LONDON (Alliance News) - Castleton Technology PLC on Thursday said it is trading "comfortably" in line with market expectations following a solid performance in the first half.
The software and managed services provider said its revenue for the six months to the end of September was GBP8.5 million. It posted GBP1.9 million in revenue a year earlier but since then has restructured itself substantially, demerging its network-based managed services unit, selling its software consultancy division and changing its name from Redstone PLC.
Having done that, it then embarked on an acquisition spree, buying managed services provider Montal Holdings Ltd, document management and scanning company Documotive Ltd, and social housing sector software providers Opus Information Technology Ltd and Keylogic Ltd.
Castleton said recurring revenue now represents 55% of its total sales and said the outlook for the rest of the financial year to March 2016 is underpinned by recent contract wins and a robust order pipeline. It added the integration of its acquisitions is progressing well and said it has secured 49 new customers since buying the companies.
"I am pleased with the progress we are making. We have acquired six businesses over the past 15 months, and they are bedding in well. Early signs from our customers are encouraging, as they begin to take advantage of the broader range of products and services we can offer them," said Ian Smith, Castleton's chief executive.
"With a strong core of repeat revenues, I am confident we can maintain organic revenue growth whilst we accelerate the number of our customers taking more of our services. There is a momentum around Castleton that gives me great confidence in our future," Smith added.
Shares in Castleton were up 5.3% to 3.50 pence on Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
