8 Apr 2019 07:00
Castleton Technology PLC
("Castleton", the "Company" or the "Group")
Trading Update
Results in line with expectations
Castleton Technology plc (AIM: CTP), a leading supplier of complementary software and managed services to the public and not-for-profit sectors, is pleased to provide the following update on trading for the year ended 31 March 2019 ahead of the announcement of its full year results.
The Company is pleased to announce that results for the year are expected to be in line with expectations with revenue of not less than £26.3 million and adjusted EBITDA* of not less than £6.3 million, representing continued good organic growth. Cash generation in the period was solid, resulting in operating cash conversion of not less than 95 per cent. of adjusted EBITDA*, facilitating a continued reduction in the Company's net debt from the prior year.
The Group expects to announce its preliminary results in June 2019.
Dean Dickinson, CEO of Castleton, said: "I am pleased with the progress Castleton has made over the past year, recording good organic growth in both revenues and profit, underpinned by continued solid cash generation. The Group has achieved a number of key operational milestones, notably, the delivery of our integrated product suite for two customers, a significant contract win with Connect Housing Association for the fully integrated solution (Total Contract Value £1.3 million) and an additional managed services contract with DGHP for Unified Comms. The acquisitions of Deeplake Digital and our Indian development partner enhances our integrated offering and highlights our ability to develop new solutions.
The market opportunity remains large and given the Group's established position serving the social housing sector and the cross-selling opportunities, the Board continues to be optimistic about the Group's growth prospects."
*Before net finance costs, depreciation, amortisation, exceptional costs and share based payment charges
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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
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.