Member Info for Aphrodite

t's a bit ironic really. They've been preparing ( new data centre space and merging software and managed services ) for bigger and better multi-year contracts, and got ahead of the market ( on what we're told ) with one off deals drying up. Anyway, on the bigger ones it was only in July this year that we learned they had previously bid on 2 large full suite contracts. They got one. They won the other on price, but not on referenceability. They have that now and are happy to bid on more. Knowing how long the tender process takes there is still plenty of time for success on at least some of the 7 new live bids mentioned.
This is not a fly by night company. Mr. Dickinson has said he is always open and transparent in company affairs, and says things as they are. I think he must at least have sight on improved figures for the second half. The use of 'material' may be, material. I would expect him to put some meat on the bones of a trading update which saw a 40% drop, when they report on 5th. November.

recommends Castleton by entering 3 year partnership for its housing association members

https://www.housing.org.uk/offers-and-benefits/services-and-benefits/castleton-technology-plc/

That puts them and Nigel WRAY as joint largest shareholders.

Cannacord a buyer - averaging down and went from 10% to about 13% yesterday

NT to buy at 55p.

Some very large trades continuing with no change in sp. This is not new here - they have been occurring over the last year or so plus with no change in sp. In the 90p + range. We have taken them to be inter party trades, probably through FinnCap, without the mm system, and notified to the market. ie a sell and a buy.

I think it appropriate to repeat one of my earlier posts, which I think goes to putting Castleton into perspective in the sector. ( though the last sentence now appears odd )
The National Housing Federation is the professional representative body for housing associations. I think they can be credited, through their members, of knowing what is going on in the sector. It was only on the 2nd. September that they announced their new partnership with Castleton, and named them as preferred supplier. Castleton are not one of a number of relevant preferred suppliers. The company is 'the' preferred supplier amongst its peers. Not Aareon, Northgate, Civica, Capita, or anybody else. Castleton alone is named in their field of expertise.
Tier 1: Preferred Supplier
This is a bespoke multi-year partnership with commercial organisations, created to deliver preferential terms and conditions for products and services for our members.
The product or service offered needs to meet housing association members’ requirements, while delivering exceptional customer service and value. Preferred Suppliers can connect with specific member groups through our digital channels.

Castleton was not granted this status without proper enquiry. It puts them top of the tree. Provided Mr. Dickinson and Mr. Haywood make the figures work, and I have no doubt their minds are on costs, margins and the future, then Castleton should be doing very well, in contradiction of the current price.

Anyway, back to the company. Business as usual for them. They put out a newsletter today. It's a sort of summary of products and things, for customers.
https://www.castletonplc.com/wp-content/uploads/Keeping-Up-with-Castleton-Oct-2019.pdf

Interim trading update
Castleton has released an interim trading update to September detailing a challenging 1H20 for one-off revenue and continuing strength in recurring revenue, which grew in absolute terms. While 2H20 is expected to deliver a material improvement in group performance, we review FY20 forecasts to accommodate the pressure on product and professional services revenue, moving revenue and EBITDA (pre IFRS16) -15% in FY20, and -13% in FY21. Even as recurring revenue demonstrates its strengths and opportunities, in the near term the contemplation of moving to the cloud has changed customer buying habits and slowed decision making – meaning the long-term growth opportunities from recurring revenue growth are stronger than ever, but the instant fillip of one-off revenue, which boosted prior years, is not yet offset. As a growing and focused one stop shop for public sector Housing, and having reorganised to drive greater focus, Castleton’s main risk is now being acquired in moments of share price performance weakness. Target 130p (140p) a 5% free cash flow yield target for FY21.

Bit overdone for now - I don't think it warrants going back 4 or 5 year price.

An unexpectedly disappointing update. Anticipate better second half, but still behind expectations. Reorganisation has not gone as expected. There's obviously some in-house sorting to be done.

A lot of shares changing hands continuing, and starting again at this price, and higher over last few months.

Fair enough. But they have a long way to go this financial year to get to the FinnCap price, and to meet senior line management aspirations by March of the LTIP.
https://www.lse.co.uk/rns/CTP/castleton-technology-implementation-of-long-term-incentive-plan-2viaae1r7tvvkcy.html

The National Housing Federation is the professional representative body for housing associations. I think they can be credited, through their members, of knowing what is going on in the sector. It was only on the 2nd. September that they announced their new partnership with Castleton, and named them as preferred supplier. Castleton are not one of a number of relevant preferred suppliers. The company is 'the' preferred supplier amongst its peers. Not Aareon, Northgate, Civica, Capita, or anybody else. Castleton alone is named in their field of expertise.
Tier 1: Preferred Supplier
This is a bespoke multi-year partnership with commercial organisations, created to deliver preferential terms and conditions for products and services for our members.
The product or service offered needs to meet housing association members’ requirements, while delivering exceptional customer service and value. Preferred Suppliers can connect with specific member groups through our digital channels.

Castleton was not granted this status without proper enquiry. It puts them top of the tree. Provided Mr. Dickinson and Mr. Haywood make the figures work, and I have no doubt their minds are on costs, margins and the future, then Castleton should be doing very well, in contradiction of the current price.

With fundamentals improving and no reason to be other than optimistic about the future, I can't see any reason we've gone back to prices of a year ago, so I bought some more this morning, my second recent tranche.

As we know, EDRM has met with initial success there, as in the UK and ROI when they started out. It's a straightforward solution, which together with mobile should give an increasing base to cross-sell into. They're both compatible with other providers solutions too, for those who may have other contracts left to run. So I hope for similar success there as before, and build on that.

Castleton returning £817k to shareholders today. Doesn't add up to much for most at 1p a share, but it's a progressive dividend - and if forecasts are correct we can be pretty much net debt free come 31st. March. We'll get more on that with trading update/half year results.

Though the big holders are trading between themselves, buyers anticipating gain, there's not many pi's to be seen. We shall see what the trading update brings.

And looking across the websites, I reckon that's another 2,480000 shares changed hands. There should be RNSs about soon.

out today. Nothing new for followers - an article about the Connect Housing Contract and a long one by James Massey about the need for EDRM, and he ow Castleton in a position to provide it. It must be quite a good solution, some other suppliers use it for their customers.