Member Info for Aphrodite

They're doing the Housing Technology Conference in March:-

Cluid Housing Revisited: An integrated technology partnership built for the future
Speakers: Ronnie Maher, IT director, Cluid Housing, and James Massy, COO, Castleton
At the Housing Technology conference in 2017, Castleton and Cluid Housing unveiled their exciting business transformation project to peers. As promised, we are delighted to now share an update on the project’s progression and the outcomes for Cluid, who have been live with Castleton’s complete, integrated solution since November 2018. It has been a hugely significant project for Castleton and Cluid alike; having produced a future-proof, scalable solution, specifically for the Social Housing sector.

Also showing off new solutions and new branding.

I am trying to get a handle on this, irrespective of the board members individual and joint responsibility. On the offer price, is it not true to say that Connect is paying considerably more for Flybe than the bid to shareholders, taking into account the £20m ( unrecoverable from Flybe?) bridging facility, so say to keep it flying. And then there is the matter of further investment to secure its benefit to the purchasers.

Yes. It's not as though they're buy or sell signals with Castleton - provided shares are picked up by somebody as the picture has been here more a question of facilitating a profit and support at a higher price,

Over £500k in blue today, though a drop on the ask. Some big money involved there, so potential for major participation.

The buy and build's still quietly ongoing, adding customers and solutions. And Kinetic a year ago opened up Australia for Castleton products. All takes time to work through.

They have a cunning plan, so far it's paid off, and they're sticking to it, improving company status in what seems a thriving market. The aim is obviously that acquisitions, partnerships, development work, and all that translates into cumulative contracted earnings over future months and years. I can see that working out just fine.

January 14, 2019
New partnership with PIMSS brings market-leading Asset Management to Castleton Customers

We are pleased to announce our partnership with market-leading Asset Management service providers PIMSS. Managing the full life-cycle of your property assets, Castleton’s Housing Management System is now fully integrated with the PIMSS solution. With 21 years experience built within the social housing sector, PIMSS are a great partner to the organisation, as they are the only dedicated Asset Management company in Social Housing, catering to the diverse needs of both large and small scale organisations.
PIMSS can cater to our diverse Housing Providers needs, as they recognise that based on geography, not all housing providers operate the same. The Asset Management functions are designed to meet the unique challenges of Social Housing markets across England, Scotland and Wales.
Integrated with Castleton’s Housing solution, Asset Management products will help our customers
* Spend money more effectively and efficiently
* Make better, evidence based decisions
* Plan financial outlay more effectively
* Ensure compliance with key sector standards, plus legal/health & safety requirements
* Minimise risks
* Maximise the opportunities your Asset base presents
* Improve the efficiency of field based staff with mobile working
* Evaluate the viability of your housing stock (or that of organisations you are considering merging with) against a broad range of social, economic, demographic and environmental factors.

Of little consequence, but of passing interest to investors on the numbers of units/tenants requiring administration by better technology.

Housing association starts climb 7% to more than 10,000 in quarter
NEWS
14/01/1912:01 AM

BY JACK SIMPSON
The total number of new homes started by housing associations has risen despite a fall in the number built for open market sale, new National Housing Federation (NHF) data shows.

Housing association starts climb 7% to more than 10,000 in quarter #ukhousing

The NHF’s supply survey for the three months up to and including September 2018 showed that associations had begun 10,511 homes, up 7% from 9,793 in the second quarter of 2017/18.
It is the highest Q2 figure since the NHF began the series in 2016.
The latest data, which covers 87% of all stock owned by developing associations, shows year-on-year increases in social rent, affordable rent and shared ownership homes.
However, the number of market sale homes built hit 1,321 for the period, down more than 37% on last year’s Q2 figure of 2,111 market sale starts.
The NHF’s supply survey provides the most detailed statistics on housing association delivery when compared to government and Greater London Authority (GLA) statistics, which captures only activity in their funding programmes, and does not attribute all Section 106 homes as being delivered by housing associations.

All major investors will be welcomed. PI's too!
Finncap forecast for the full year is is £26.3m, a 12.9% rise on last full year's figure. Revenue at £12.9m was up 20% at last report on the half year. So in the light of the trend, continuing progress and board confidence the full year revenue forecast is certainly achievable, and perhaps can be exceeded. And as an aside they revised the PBT upwards after the interims, as I posted before.

£200ks worth reported at the end. Same buyer seems likely.

Castleton Technology acquires Deeplake Digital
Georgina O'Toole, 20:32, 10 January 2019
Castleton Technology logoA perfect fit of an acquisition for Castleton Technology has been announced today, as it continues its buy and build quest (see Castleton Technology: The post-integration journey). It has agreed to pay £1.8m in cash for Deeplake Digital Limited, a company providing digital technology for landlord and tenant communications, specifically in the social housing sector. That communication, via its own proprietary software, can be via SMS, e-mail or social media.

Those who have tracked Castleton Technology through TechMarketView (see UKHotViews archive) will know that, while it describes itself as a “software and managed services provider to the public and not-for-profit sectors”, its core hunting ground is social housing. So, while this may be a small, bitesize acquisition (adding annualised revenue of £0.8m), it is clearly complementary and enhances the company’s offering.

Castleton’s existing portfolio covers a range of functions including CRM, EDRM, financials, housing, strategic modelling, Purchase to Pay, repairs, service charges and mobilisation. The company had, through a total of nine acquisitions, built up a full-service portfolio in the social housing niche. But its ambitions were to further align its offerings with market demand and the continued shift towards the digitisation and mobilisation of business processes. Adding Deeplake Digital with its Deeplake Communications Software supports that aim.

The numbers also seem to stack up. Deeplake brings 80% recurring revenues, was profitable in its last financial year (normalised EBITDA of £0.3m) and is expected to be earnings accretive in the full financial year ending 31st March 2020. But more importantly, Deeplake will bring further cross-sell opportunities; of its 90 existing housing association customers, 60 represent additional annual contracts with existing Castleton customers while 30 are annual contracts with new customer names. The move is also a good demonstration that Castleton is committed to investing in its solution – a big tick in the box when prospects are evaluating its offering.

'Four existing staff from Deeplake Digital will join the Castleton team, to ensure high quality delivery and continuity for customers. Deeplake Digital has strong relationships with over 100 housing associations, comprising more than 60 of Castleton’s existing customers. The acquisition will add more than 30 new customer names into which Castleton can support with wider solutions and services, with the backing of greater resources, product investment and scalability.'

I see from the website that this complementary acquisition will only increase Castleton headcount by four employees - so not much in the way of ongoing cost there when set against the cross selling and other advantages.

From cash and bank facility. Yet another growth enhancing move by Mr. Dickinson, who summarises.

"This strategic acquisition enables us to capitalise on the significant opportunities within the Social Housing market's ongoing market shift towards digitalisation, building on the capabilities that the Group has already successfully developed. Deeplake Digital adds scale, customers, skills, market knowledge and specific digital communication intellectual property and has a great reputation for delivering a quality product and service, evidenced by its high customer retention levels over the past ten years. This acquisition provides additional cross-selling opportunities into Deeplake Digital's customer base, in line with the Group's growth strategy."

Sector: Technology & Telecoms

Castleton Technology (CTP) : Corp

Contract win and client go-live

Key data

Share price (p) 93.5
Target price (p) 125.0
Market cap (£m) 76.0
Enterprise value (£m) 80.7
Castleton has opened 2019 with the announcement of its selection as Housing Technology Partner for Connect Housing Association, with a £1.3m five-year contract for the entire suite of integrated Castleton solutions; and the go-live for Cluid Housing Association in Ireland, the first customer to take the complete suite, providing important referenceability for future customers. With proof points delivered for the full Housing ERP, and a large new customer, Castleton’s route to growth is being demonstrably delivered and we look forward to 2019 as a year to excel. Target 125p reiterated.

There's a bit more on the website
https://www.castletonplc.com/latest/news/
It all goes to cumulative contracted repeat revenue, with profitability increasing following the earlier greater costs of securing the contract and implementation/project management dropping away, and additionally affording forward improving visibility of earnings ( hence the promised dividend )
And previously awarded contracts also going through the same process.

( housebroker) reaffirms corporate 125p in this mornings note.

Further evidence of the one stop shop and full integration on mobile appeal.

LTIP - Done it or on the edge for year one I mean.

Your summary is good. The LTIP announced in March is 40% a year over 3 years from 68p., for full vesting in stages. We don't know the exact terms of the LTIP, but they've either done it or are on the very edge of it, sp having drifted back. Operationally not looking for anything 'new' here, 'just' more of the same.