15 Apr 2020 07:00
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
CASTLETON TECHNOLOGY PLC
("Castleton", the "Group" or the "Company")
Recommended Cash Offer for Castleton
Trading Update for year to 31 March 2020
Castleton Technology plc (AIM: CTP), the software and managed services provider to the public and not-for-profit sectors, draws shareholders' attention to the announcement (the "Rule 2.7 Announcement") made by MRI Software Limited in relation to a recommended cash acquisition of Castleton.
The Rule 2.7 Announcement also contains a preliminary update with regard to the Company's financial performance for the year to 31 March 2020. The text of this update is extracted below:
Castleton expects to report revenue of not less that £23.3 million for the year to 31 March 2020. This level of revenue would be marginally behind management expectations and, accordingly, it is expected that adjusted EBITDA will also be marginally behind management's expectations. Cash generation for the period remained solid and this facilitated a continued reduction in the Company's net debt.
The Company's contracted backlog has increased by £1.6 million over the course of the year to £32.5 million as at 31 March 2020, although it also experienced a small amount of churn in its customer base. Amongst other risks to the business, the unknown duration and extent of the macro and micro economic consequences of the COVID-19 pandemic makes predicting future near term demand for the Company's offerings difficult at this stage. However, it is worth noting that approximately 67% of the Company's revenue for the year to 31 March 2020 was recurring in nature, providing a base level of revenue visibility for the future.
The Rule 2.7 Announcement will be available, subject to certain restrictions relating to persons resident in certain jurisdictions, on Castleton's website at www.castletonplc.com shortly.
Enquiries:
Castleton Technology plc Dean Dickinson, Chief Executive Officer Haywood Chapman, Chief Financial Officer
| Tel. +44 (0)845 241 0220
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finnCap Jonny Franklin-Adams / Henrik Persson / Simon Hicks (Corporate Finance) Andrew Burdis (ECM)
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Tel. +44 (0)20 7220 0500
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Alma PRRebecca Sanders-Hewett / Helena Bogle
| Tel. +44(0) 203 405 0205
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About Castleton Technology plc
Castleton Technology plc is a leading supplier of complementary software and managed services to the public and not‐for‐profit sectors. The Group is a 'one stop shop', providing integrated housing systems via the Cloud, working in partnership with its customers and resellers to help drive efficiencies whilst improving controls and customer service. www.castletonplc.com