Castleton Technology Loss Widens Following Major Restructuring

LONDON (Alliance News) - Software and managed services provider Castleton Technology PLC on Monday said its pretax loss widened in the year to the end of March following its substantial restructuring.

Reporting its results for the year to March 2014 in September a year ago, the company said it had completed its restructuring, which saw it demerge its network-based managed service business to Redcentric PLC and sell its Comunica Holdings Ltd and QAD software consultancy business for GBP9.7 million, before then changing its name to Castleton from Redstone PLC.

For the year to March 2015, which included no continuing operations from the previous year, it posted a pretax loss of GBP3.1 million, widened from a GBP1.3 million pretax loss a year earlier, as it booked GBP2.1 million in restructuring charges and as a big rise in administrative expenses offset the revenue it booked.

Revenue for the group came in at GBP6.1 million, with no comparative figure provided, as the group completed the acquisitions of IT 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.

Since the close of the financial year, the company has acquired financial modelling software company Brixx Solutions Ltd and Impact Applications Ltd, a social housing repairs management and scheduling tools provider.

"With the quality software and IT services assets that we have acquired, we see enormous potential to become the go-to supplier for software and IT services in the social housing market. The management are now fully focused on integrating the companies that have been acquired into a seamless provider, adding value to our customer base; the new financial year is progressing well with the Group trading in line with market expectations. The board is optimistic for the group's prospects," said David Payne, Castleton's chairman.

Shares in Castleton were down 6.4% to 3.23 pence on Monday.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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