Member Info for Raleigh

In November Castleton had 600 of the current 700 target associations as customers. 64% of it's customers take only 1 solution. It sells a dozen or so solutions. More revenue is available from Managed services. The opportunity is obvious, and should improve when referenceability can be provided by those who have purchased the full suite of solutions, to enable the company to tender for contracts that at present Dean Dickinson passes on pending that referenceability.The Castleton model is succeeding, and according to what has been posted from the employee 2 day sales meeting the company will post record yearly sales for both Software and Managed Services in June. We know results will show revenue of at least �23.1m from �20.3m last reported FY - an increase of at least 13.79%. It acquired Kinetic in December, to restart operations in Australia. Kinetic brings revenue of �1.3m and another 50 customers into which to cross-sell in their growing community housing market, and the opportunity to enter the Aged Care sector and expand into New Zealand. Kinetic will become earnings enhancing this year. With the form Castleton has shown, there is nothing to suggest other than ongoing steady progress.

Eu10m over 3 years is reported as perhaps the value to Glantus, from the strategic partnership. That is from the press and the rest is completely unknown, but in relation to Business Intelłigence the agreement will be earnings enhancing to both, and additional revenue will flow into and some through Castleton's accounts. So far, (there may be other possibilities ahead though I discount them for the purposes of my investment ) Castleton provide the customers, and Glantus the additional technology which adds value in terms of ability and efficiency and 'puts them ( Castleton ) firmly ahead of the competitors in this field.' Glantus' technology is embedded in Castleton's previously existing fully integrated offering, rather than being a simple resell. The implicit and presumably true sales pitch being that if associations want the best business intelligence system (tailored to the sector by Castleton ) and they want to avoid any compatibility problems arising from 'mixed' solutions then they should buy it ( and all the other solutions!) from Castleton. BI is just one solution contract wise, but the data on which it feeds has to be captured. For Castleton, the immediate objective is multiple fully integrated solution sales, ideally hosted within Castleton Managed Services.

It is encouraging to see a Business Intelligence sale forming part of the contract - I assume this may be one of the first arising from the partnership with Glantus.

On the LTIP. One would need to see the option agreement under the LTIP to be sure, but it requires 40% per annum over 3 years. That would be a minimum for full vesting, and a minimum price can be calculated. However, from what has been provided, it appears that each successive year requires 40% minimum rise from the yearly calculation date, on the price then existing. That may present a more challenging target, but vested shares will at the same time be growing in value. It remains an aspiration, rather than a given, but they are on track for the first vesting.

Novel mobile tech will be helpful in Australia, where Castleton intends initial inroads through that and the also updated CEDRM. It is all part of Dean Dickinson's strategy, and I expect more of the same heading further into this Phase 2. Following basic integration of the various businesses, and their products, he is also bringing about changes to unite staff under the 'One Castleton' ethos. This will include greater centralisation of information, and will go to the company's overall professional standing in a discriminating and somewhat ponderous sector. Events are moving towards a most interesting and positive results outlook in June. FinnCap, in consultation with the company, will do as they wish when they wish, but I would expect a new target with results latest - and whenever it comes it will be up, not down. It will need doing if the longer term requirements of the LTIC ( RNS 22/3 ) are to be seen by senior line managers as reasonable. But with a corporate rating it tends to the cosmetic. The company is at the beginning of a new stage. With all Castleton has going for it, and under his direction, Dean Dickinson foresees growth. Wherever invested, shareholders should look to the future and act accordingly.

There is plenty over the last financial year to enable a very positive results report in June, together with post year end events and outlook.

My comment went to the future unencumbered mobile revenue. I also understand about breaking the 80p. But that is about shareholder short termism. Under the LTIP the senior managers are looking for 95p minimum by next February ( 68p + 40% ) and the board will not have envisioned disappointment at what seems to me to be their first hurdle. There are the finals and interims before then, with outlook, and the probability of other updates. All subject to the usual caveat of anticipated sustained quiet operational progress.

The licence agreement will in any event fall to be a priority this year. Having disposed of that, the future income from the mobile tech will be for nothing. Quite a hike in free cash going forward with a cumulative, repeat revenue model, and with anticipated new Australian sales of that particular product.

This is a vastly different animal than 2 years ago. Integration complete, central costs bottomed out ( though there will be some re. Kinetic ) debt being paid down, evergreen options disposed of, and new now feasible Australian opportunity. And within sight, over 12 months or so,with continuing cash generation, of disposal of the BGF and Mxc loan notes for Kypera, as well as the licence fee for what was Agile mobile - BGF and Mxc may even convert before, when 85.6 is reached. That is looking ahead, but if it proves possible and management see it as wise, that in total would free up �775000 to drop to the bottom line in due course. The company is well-positioned for the future, always provided their products and service continue to be viewed in the way they currently appear to be.

It is possible to go around in circles with that. It does not cover Friday either. The company is performing well as indicated in the releases. The rest is largely irrelevant.

As to be expected in accordance with the Mxc model, ( they will sell assets, or raise cash in the market to move on ) and adding to their option realisation. One cannot be sure, but that seems to set a lower limit for any future Mxc sales. Nigel Wray would not be pleased to be disadvantaged by any further Mxc sales to others at a lesser price. Kestrel may wish to follow suit, on the chance they need to seek cash to participate in the new Mxc venture, although their investment here will not have shown as great a profit. But that is another story unfolding, with Castleton being driven to new opportunities by Dean Dickinson.

It is a job for a good company broker to match or rustle up buyers and sellers. They could be anybody, and with the company performing as well as it is it tends to the inconsequential, as seen over the recent months. The benefit to us is that It permits long term holders to take some profit at full price thus avoiding a drawn out process and detrimental effect on the share price, whilst aiding liquidity and building the share register. It has been a good year for Castleton. In the absence of anything unforeseen, similar progress lies ahead.

It is much better than I anticipated. Things appear to have accelerated a little in the second half. The key to this is indeed in greater profitability from cumulative and new repeat revenue at less cost. Something now being achieved and ongoing, with all the integration heavy lifting done,

All to the good moving forward and upward - made them available to another holder at the price. There are several pointers in those releases in the previous posts, with Dean Dickinson targeting resources and improving capability in the market, as is to be expected at this second stage of a growth company. Dean Dickinson is turning things up a notch now all the foundations are in place. He is particularly customer centric, and this is coming through, including improved customer liaison, evidence of future proofing solutions and showing a willingness to use new technology. Kypera gave an introduction to the Australian market, but on its own made no financial headway. A break even operation. Castleton will now, with steadily improving cash generation and visibility of earnings, invest in the Kinetic established framework, which already has 50 plus customers, increasing headcount and working its Castleton products into the very successful ( near 100% customer retention ) MYOB/Greentree operation. Castleton mobile will be a lead product in the relatively young Australian market. Kinetic will enable Australian activities to become earnings enhancing next financial year, which the company is approaching with a clear straightforward plan for growth there based on the tried and tested UK model. Should last year be followed there will be a trading update at the beginning of April, which having regard to 21st February RNS will say that the company has continued to trade well and in line with market expectations with strong cash generation. Anything more will be a bonus.

IT is guessing - but nevertheless an attempt to interpret the thinking behind the RNS on management's knowledge of company performance at this time and the opportunity going forward.

The removal of MXCP options and all evergreen options has permitted departmental management incentivisation, aligning their best interests with those of shareholders on a progressive basis. It is guessing, but sometimes one has to do so, and possibly best to look at the shorter term on what may now seem within reach to those who know, it being counterproductive to give impossible targets to key employees. It would seem to indicate a confident approach to year end and an achievable target of 95p by February next, in which case housebroker FinnCap will be called upon to raise their published target of 90p to �1 after final results. A welcome announcement for a growth company as these things go.

I prefer to focus on the matter of value as myself and othe investors perceive it, and see this slow advance as being on that basis rather than fashion. I take the point, but the price will always revert to value in the long term. Castleton has a 10% growth target, which they are achieving, and also seeks to increase cash generation per employee by about 50% over the 12 months or so from H1. There is much potential here based on continued cross selling, plus the take up occasionally of the compete suite. One hopes the best is yet to come.

It is unusual to know with any confidence what larger participants pay for their stock, except on a placing. It is academic, but after months of unexplained large trades and following deal brokering it now seems possible to draw a line under the effects. It is an agreed current share price of 72p.

That disposes of Thursday. Kestrel and Cannacord discussed it, and price agreed. I would not be surprised to see further dissemination over time, and disposing of the evergreen options may facilitate that. It is pleasing that a willing buyer was available. The video was quite interesting, self explanatory, and confirms my thinking. Heywood Chapman seemed quite dismissive of the Australian operation, ' small and break even' if I recall correctly. The subsequent Kinetic acquisition ( then under wraps )changed that. It will become earnings positive for Castleton during next FY, providing new opportunities for cross selling.

I have looked again. 1,600,000 shares are shown as traded today at 72p. On the information available they are buys. On a shares in issue figure of 78,889,332 that amounts to 2.02% of the company share capital purchased today, and takes no account of the well documented previous very large transactions. No holdings RNS has been forthcoming. Nobody buys that amount by arrangement without careful consideration. In the event these are buys ( and sells ) by an existing major shareholder, I would expect notification, as Kestrel/MXCP/WRAY are known to have done. Should there be such notification, it will be interesting to see how it stacks up. In the absence of notification, the only conclusion, which I long ago reached, is that there are larger holdings under 3%. There is always the possibility of a failure to notify, but I doubt that is likely with the known holders, and this if done 'deceitfully' invariably relates to sales. It crosses my mind that the RNS of 21st. February, divesting the company of evergreen options and in particular ' paying off ' MXCP, may not be unrelated this latest buying interest.