Castleton Technology announces two contract wins

AIM-listed software and managed services provider Castleton Technology has secured two multi-year contracts extending the group's contract base and level of recurring revenue across both its managed services and software solutions divisions.

The first is a seven-year contract with North Hertfordshire Homes with a total contract value of £2.6m for the provision of a fully managed hosted desktop service.

The second is a three-year contract with a community regeneration and housebuilding company for Castleton's scheduling software product, Impact. The contract is on an annually recurring subscription basis with a total contract value of £800,000.

Chief executive officer Dean Dickinson said: "These significant contracts are evidence of the progress we are making with our stated strategy of growing recurring revenue and moving away from one-off transactions. Furthermore, they are evidence of how well-placed we are to win new customers and bigger contracts within our chosen sectors.

"As we expand our customer base, we are also seeing increasing opportunities for upselling and cross selling other products and services across the group, giving me great confidence in Castleton's future prospects."

At 0844 BST, the shares were up 4.2% to 71.90p.