CTP.L Regulatory News (CTP)

Castleton Technology plc

("Castleton" or the "Group")

Trading Update

Ahead of the Company's Annual General Meeting to be held at 2.00 p.m. today, Castleton Technology plc (AIM:CTP), a leading UK Software and IT managed services provider to the public and not for profit sectors, announces a trading update.

Highlights

· Trading comfortably in line with market expectations

· Adjusted EBITDA1 of £1.7 million for the six months to 30 September 2015

· Revenue for the six months to 30 September 2015 of £8.5m

· Growth in recurring revenue - now represents 55% of Group revenues

· Recent contract wins and pipeline underpin positive outlook for remainder of financial year

· Acquisitions performing well with organic growth2 across the Group of 16%

· Integration of acquisitions progressing on track

· 49 new customers across Group companies since dates of acquisition

1 Adjusted EBITDA represents earnings for the year from continuing operations before net finance costs, depreciation, amortisation, integration and strategic costs, goodwill impairment and share-based payment charges.

2 Organic growth based on orders across all Group companies comparing 12 months to September 2015 with 12 months to September 2014

Trading

The Group generated adjusted EBITDA* for the six months to 30 September 2015 of £1.7 million with the underlying business and all acquisitions performing in line with the Board's expectations. Organic growth on a 12 month basis across the Group is 16%, reflecting an enlarged customer base of over 450 customers. This enlarged customer base has also provided significant cross-selling opportunities with an increasing number of customers taking more than one product and/or service.

During the period, four resellers (including master reseller Viaduckt) were signed up in the Netherlands in order to take the Castleton product set to the Dutch social housing sector. The first customer in the Netherlands went live at the beginning of October 2015. As announced on 14 September 2015, the Group has also entered into a strategic partnership with a leading supplier of software solutions to the public and social housing marketplace.

Integration

On 1 October 2015, the Keylogic and Montal businesses merged to become Castleton Managed Services Ltd, a wholly owned subsidiary of Castleton. The four acquired software businesses, Documotive Limited, Opus Information Technology Limited, Brixx Solutions Limited and Impact Applications Limited, are expected to merge during the second half of the year into one legal entity, along with the associated streamlining of systems and processes. This will enable the Group to provide more joined up solutions for our customers and further accelerate up-selling opportunities across the Group alongside realising cost saving synergies between the businesses.

Interim Results

The Group expects to report its interim results for the six months ended 30 September 2015 in early December 2015.

Ian Smith, CEO of Castleton, commented:

"I am pleased with the progress we are making. We have acquired six businesses over the past 15 months and they are bedding in well. Early signs from our customers are encouraging, as they begin to take advantage of the broader range of products and services we can offer them. With a strong core of repeat revenues, I am confident we can maintain organic revenue growth whilst we accelerate the number of our customers taking more of our services. There is a momentum around Castleton that gives me great confidence in our future."

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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 acquisitions of Montal, Documotive, Opus, Keylogic, Brixx and Impact Applications bring together an exceptional suite of solutions, providing the foundation for this platform. Castleton works in partnership with its customers and resellers to help drive efficiencies whilst improving controls and customer service. www.castletonplc.com