LONDON (Alliance News) - Castleton Technology PLC said Tuesday it swung to an annual profit from a loss the year before while the firm has also exercised its option to purchase Brixx Solutions Ltd's financial modelling platform licence.
For its year ended March, the social housing and software company posted a pretax profit of GBP1.8 million from a GBP539,000 loss the year before. Its revenue increased 15% to GBP23.3 million from GBP20.3 million.
The revenue rise came from Castleton's Software Solutions division increasing revenue to GBP12.4 million from GBP10.8 million and its Managed Services division boosting revenue to GBP10.9 million from GBP9.4 million.
In a separate announcement, Castleton said it has exercised its option to buy a financial modelling platform licence from Brixx International. Castleton have been using the platform since it acquired Brixx Solutions for an annual fee of GBP300,000.
The GBP1.6 million acquisition will paid in 1.3 million new shares at a price of 82.75 pence per share worth GBP1.1 million and the remaining GBP500,000 coming from the company's cash resources.
Castleton will pay Brixx International a further GBP60,000 to develop the platform further - to be paid with 72,508 new shares at 82.75p each.
Looking ahead, the company believes it is "increasingly well positioned" to "capitalise on the ability to address historic under-investment in IT infrastructure" in the public and not-for-profit sector.
Castleton said its new financial year "has started well" and is "comfortably in line with expectations". The company said it has good visibility of revenues, a strong product pipeline and a "significantly" improved structure.
Chief Executive Officer Dean Dickinson said: "We are pleased to report Castleton has continued to perform well in delivering another year of significant organic growth in both revenues and profit, underpinned by ongoing excellent cash generation.
"The group has also achieved a number of key operational milestones, notably the delivery of our integrated product suite on two milestone contracts and the acquisition of Kinetic, enhancing our existing operations in Australia's growing Community Housing sector."
Shares in Castleton Technology were flat at 82.75 pence each Tuesday.