Member Info for Aphrodite

19th. June 2018

"Given our confidence in future prospects, the Board intends to implement a progressive dividend policy during the current year."

Unusually close spread at the moment. Buys at 104.2 and above.

Old Mutual increased from 4.67% to 7.46%. Still a lot outstanding.

CFO also sold 270k plus shares yesterday, at 97p. Still has 2% in options.

Pleased about that. Company trading consistently well, allowing the original cornerstone investors to exit their getting on 30% and options over time, to further their new plans, with buyers to hand. Bit of a milestone in the Castleton journey really. And one or two investors like it too.

If I'm right, and it seems too much of a coincidence to be otherwise, then that's them done and dusted, options and all.
And new holders. See what we get tomorrow or next couple days.

It must be MXCP coming out completely. That largest figure of 5685423 shares is their remaining holding as per. Mxcp last RNS. The rest may well be the buys.

Pick the bones out of that lot!

Yes. They're all here for anyone who hasn't seen them.
https://www.piworld.co.uk/category/company-videos-a-to-z/castleton-technology-ctp/?orderby=ratings

We've had quite a good run here sp wise, though we were sold down over a long period before that. Resting now.
I do entirely agree with that in Raleigh Tues. post.

"It is very early days in terms of the company benefitting from it's long term strategy."

The whole idea of the buy and build was to put the company into a position so that it could cross-sell it's best in breed, further developed solutions, and then get on with selling. It's only recently reached the stage, having integrated them all on top of the mobile, of achieving referenceability for the full suite and the same for managed services, on the back of those few who have so far taken the lot,enabling it to better compete for contracts.
Costs of acquisitions and problems with integrating the companies are behind. The heavy, costly, background work is done, enabling the company to concentrate on sales mainly into it's 670+ customer base.

You could be right, but I think it'll broadly follow the LTIP aspirations - both presumably set on the same information/Finance Officer's forward assessment.
The fact it is a slow business works both ways - slow but steady cumulative revenue, with cross selling coming in cheaper than new customers, but once they're in under contract all being well they'll stay - limiting room for sudden downside shocks. And they are getting new business as well as the cross selling going well.
Next up the divi. Institutions may find that attractive - if they do, there'll be MXCP shares to pick up if they sell up completely. That may already be in hand - no shortage of buyers for them so far.

reiterate 125p this morning.

Here it is, from TechmarketView, stressing the strategic importance of the contract as opposed to the cash on this one particular contract.
Castleton Technology signs managed services deal
Kate Hanaghan, 09:57, 21 August 2018
casFollowing swiftly on the heels of its deal with Dumfries and Galloway Housing Partnership, CastletonTechnology has announced its managed services deal with Circle Voluntary Housing Association. The association was already a Castleton hosting customer (signed January this year), but the service provider has expanded the contract into a fully managed service offering including a cloud managed desktop-as-a-service (hosted in Castleton’s Tier 3 datacentres) with support delivered via its service desk.

The contract value at £364k over five and a half years is not as large as the Dumfries deal, but we think it’s notable as it shows Castleton is able to migrate customers from single solutions to more wide-ranging managed service deals. Furthermore, and provided it is of benefit to the customer, there should be opportunities to grow the revenue value of the contract over time.

In instances such as this, the technology provider becomes absolutely critical to the delivery of core services. This is absolutely the position Castleton is pursuing and wins such as Dumfries and Circle will help build its reputation further in target sectors and create more momentum.

The managed services side is gaining traction. This, recently on the website indicating some of the ( rather obvious ) benefits.
https://www.castletonplc.com/2018/08/20/case-study-housing-solutions-implementation-of-host-it/

Techmarketview published an article on Castleton Managed Services coming into spotlight just on 9th August, posted here previously. May follow that up today.

And this is another managed services win in competition.
" Castleton demonstrated to us the best offering in the tender process and the best pricing. "
Likely to be more, and larger with full suite, with Mr. Dickinson saying they now have the referenceability to tender for the larger contracts they previously let pass.

Price a bit out on the decimal points shown on trade as opposed to RNS. Still, same difference.

Actually, a bit surprisingly at that price for the day, that £308k was a sell on Friday by MXCP. So, anyway, somebody picked up that lump.

http://www.lse.co.uk/share-regulatory-news.asp?shareprice=MXCP&ArticleCode=atku5auk&ArticleHeadline=Sale_of_Castleton_Shares

Kestrel down 730982 since last notification.

£308k buy at 104.4. Another lot of shares starting again.