Aphrodite refers to my post below.25 Oct 2016 14:22
Castleton Tech’s last set of results are to march 2016. In February 2016 CTP secured £2m in funding from the Business Growth Fund (BGF) whilst existing investor MXC Capital invested £1.5m and Barclays extended its bank facilities to the firm by a further £1m. Share price at time between 78 and 79p.
It would be naïve to assume that BGF, MXC Capital and Barclays put their money at risk without going over the company’s current and future performance with a fine tooth comb. They are not amateurs nor are they in the business of giving money away, so it would be fair to assume that they saw the current and future performance as likely to return value on their investments.
At the time Ian smith said “We are pleased to have BGF Quoted on board as a strategic long-term partner, whose funding will allow us to unlock further growth in the business.”
Gurinder Sunner, BGF, added: “Castleton’s management team has demonstrated its ability to execute an acquisitive and organic growth strategy.
“We are delighted to be supporting them as they strengthen their offering even further with the integration of Kypera and to make our first co-investment alongside MXC.”
In March 2016 Castleton Technology landed their biggest contract to date after it was awarded £5.6mln in new and extended contracts, including its largest hosted desktop and infrastructure contract so far.
“These contracts show how exceptionally well placed we now are to win bigger contracts. said chief executive Ian Smith at the time
“After a busy period of acquisitions, it is very encouraging to see not only strong evidence of sales momentum but also the further development of the underlying base of multi-year contracted recurring revenue,” added Andrew Darley, analyst at finnCap who currently have a 90p price target on the stock.
Combined with Kestrel upping their investments in Castleton from 15% to 22% and members of the board here adding to their holding at MXCP which at last count own 22.22% of CTP. I understand from Dougals it is now higher. I see no current reason to doubt the current and future performance of the company.
Now Castleton have seen some selling and all recent sells have been absorbed by a buyer so a number of possibilities could be happening; either a large investor has reduced their holding while at the same time a large investor has increased their holding or a large investor sold to shake out the unsophisticated of investor and have been buying back, or as some of CTP’s acquisitions were paid in shares they have cashed some or all in or Jonathon Holyhead and/or Cara Bell, have sold their stakes. This of course is speculation on my part.
What really matters is these are movements in the share price which the bigger players and investors have been taking advantage of have created value in the current price. Whilst it seems retail investors have been spooked out of their inves
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