Castleton Technology posts its first ever profit

Software and managed services provider Castleton Technology announced its unaudited interim results for the six months to 30 September on Monday, a period in which the group recorded its first profit.

The AIM-traded company posted revenues of £9.7m, up from £8.5m for the same period in 2015, with more than 60% recurring.

Adjusted EBITDA after central costs was £2m, up from £1.7m, and cash flow from operations reached £1.8m, compared to £0.8m.

Profit after tax for the period was £0.6m, swinging from a first half loss of £1.1m in 2015.

The board said its cross selling opportunities were being maximised, demonstrating customer confidence in the product suite, with 88% of orders being from existing relationships.

Castleton’s customer base was now more than 600.

Since the period ended, the board appointed Dean Dickinson as CEO with Ian Smith moving to the position of executive deputy chairman.

“Castleton has the building blocks for growth as a leading supplier to the public and not-for-profit sectors, specifically the social housing market,” said chairman David Payne.

“The integration of the businesses we've acquired has progressed well and signs from our customers are encouraging.

“I'm confident that the Company will maintain its organic growth, whilst increasing its profitability by providing more of our customers with our broader range of complementary services - whilst continually building our core of repeat revenues.”