LONDON (Alliance News) - Castleton Technology PLC Tuesday said its pretax loss narrowed in its first-half but impairments related to the sale of a subsidiary led to a major net loss.
The software and consultancy company, previously known as Redstone PLC, said its pretax loss narrowed to GBP398,000 for the six months ended September 30 compared to GBP900,000 the previous year.
However, if the company included an impairment from discontinued operations, it posted a net loss of GBP3.3 million during the period compared to a pretax profit of GBP448,000 the previous year.
The discontinued operations refers to an impairment cost of GBP3.0 million related to the company's sale of its key Comunica Holdings Ltd, which led to the company's change of name in November.
The company posted revenues of GBP1.2 million for the period compared from no revenues in the comparable period the previous year but revenues of GBP1.3 million for the full year ended March 31 2013.
Castleton increased its administrative expenses to GBP837,000 from GBP479,000 as the company developed operations during its restructuring.
The company also said it has increased group borrowings in its first half to GBP4.2 million from GBP1.6 million but that all borrowings have been repaid following the disposal of the company's Comunica.
Coms PLC bought Comunica for a total cash consideration of GBP9.5 million, with GBP7.7 paid up front and the remaining cash payment deferred for twelve months.
Castelton said it is now seeking new opportunities in the technology sector and the company said it will put its net cash position of roughly GBP3.0 million towards this purpose, along with reductions in central costs.
Castleton shares were up 5.2% to 0.500 pence putting it in the top AIM movers in early trading Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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