Castleton Technology Share Discussion Threads

[suneday] 16/4/2020 14:22

Well, MXCP going to sell out over next 5 years we know, they've said so, so I guess that means the whole thing will be sold off, maybe to MXLG before MXCP holdings there are sold to Liberty Global. Can't see it being other than couple years or so down the road, when they've made more of it.

[decaid] 15/4/2020 11:18

IDE next of Kestrel's holdings to be acquired IMHO.

[suneday] 06/1/2020 16:07

Holdings RNS. New Holder. Long Path Partners Smaller Companies fund takes 5%

[suneday] 06/11/2019 10:45

Castleton Technology plc (AIM: CTP), the software and managed services provider to the public and not-for-profit sectors, was notified today that Paul Gibson, Non-Executive Director of the Company, purchased 10,000 ordinary shares of 2 pence each in the Company ("Ordinary Shares") at a price of 66.0 pence per Ordinary Share.

Following the purchase, Mr Gibson is beneficially interested in 10,000 Ordinary Shares, representing approximately 0.01% of the Company's issued share capital.

[suneday] 05/11/2019 08:51

FinnCap Morning Note

Mapping out a steady second half.

Interims reveal performance in line with unchanged expectations, bar IFRS16 amendments and minor tweaks since the October update. The merging of the two former divisions to create ‘One Castleton’ is expected to deliver benefits, along with rightsizing of the Professional Services team and a focus away from competing for low-margin Hardware revenue. New contract wins such as three Managed Services deals in the period show the continuing opportunity, as well as gaining preferred supplier status to the National Housing Federation (the Housing Association industry body). The Housing Association customer base has increased to 595 (FY19: 591), of whom 52% (FY19: 50%) take more than one product; the contracted order backlog has increased 5% since 1H19; recurring revenues constitute 66% of revenue into 2H20, giving confidence in forecasts; and the group remains well placed once the customer base assesses and commits to the inevitable future in cloud or hybrid software delivery. With 48% of revenue and 44% of EBITDA delivered in the first half (1H19: 49% and 47%), we look to the benefits of execution to deliver a solid 2H and a return to cloud-derived growth in visibility and quality of earnings into FY21. Target 130p reiterated.

Interims for the period to September 2019 delivered EBITDA of £2.9m (pre IFRS16 £2.7m vs 1H19: £3.0m) from revenue of £11.6m (£12.9m), -13% organic. Postponement or cancellation of expected contract wins affected 1H and FY expectations (adjusted accordingly in October), even as 1H20 vs 1H19 recurring revenue grew from £7.0m to £7.6m and order backlog grew 5%. Net debt of £4.1m (March 2019: £4.9m; September 2018: £4.9m) highlights continuing positive cash flow, comfortably funding the maiden dividend and an increase in capex to drive future growth.

Customer cloud transition led to reduced one-off revenue (particularly Hardware and Professional Services) and accelerated transition to recurring revenue. Movement in the order backlog included decline in one-off orders (£15.5m to £14.9m), even as the recurring revenue backlog grew from £13.1m to £15.2m. New contract wins included Grand Union (£1m over 4 years); Suffolk Housing (£0.5m over 3 years) and Colne House (£0.4m, over 2 years). 73% of sales in the period were to new customers, highlighting opportunities within the group as well as through the National Housing Federation, to target smaller HAs. 1H challenges were met with a robust response to cost management, and we look forward to further proof of execution as the balance sheet strengthens to net cash during FY21.

Target 130p reiterated.

[suneday] 31/10/2019 20:01

Yes. We may get something on where the promised material improvement is coming from during the rest of the financial year.

[johnthespacer] 30/10/2019 11:30

Q2 results are out on the 5th of November

[suneday] 14/10/2019 08:40

Well, Cannacord Genuity are buying. Adding to their existing shareholding. Merian's loss is their gain as they see it.

[ih_676530] 10/10/2019 11:48

Good trade here & it looks to me that the share price will climb up to 60s by eod .. The company is still doing good business so 40% drop in share price is an extreme reaction to 'profit' warning, LTHs don't deserve such loss ........


finnCap 's PT 130p is around 130% above today's share price level !

[suneday] 10/10/2019 10:42

Interim trading update
Castleton has released an interim trading update to September detailing a challenging 1H20 for one-off revenue and continuing strength in recurring revenue, which grew in absolute terms. While 2H20 is expected to deliver a material improvement in group performance, we review FY20 forecasts to accommodate the pressure on product and professional services revenue, moving revenue and EBITDA (pre IFRS16) -15% in FY20, and -13% in FY21. Even as recurring revenue demonstrates its strengths and opportunities, in the near term the contemplation of moving to the cloud has changed customer buying habits and slowed decision making � meaning the long-term growth opportunities from recurring revenue growth are stronger than ever, but the instant fillip of one-off revenue, which boosted prior years, is not yet offset. As a growing and focused one stop shop for public sector Housing, and having reorganised to drive greater focus, Castleton�s main risk is now being acquired in moments of share price performance weakness. Target 130p (140p) a 5% free cash flow yield target for FY21.

[chimers] 10/10/2019 08:17

Business is not scaleable it has nowhere to grow.
Australia and Holland both FAILED.
The UK market is already saturated by ...CTP so thats it.

They didn't branch out into other sectors and this is why MXCP dumped it.

They knew the growth era was over and it was up against a brick wall.

I told you all of this.

Granted it took a bit longer than expected but it had to happen.

[chimers] 10/10/2019 08:14

I WARNED YOU

[suneday] 18/6/2019 15:02

Results are much as forecast, neither more nor less than anticipated. Not spoiled, but detracted from by an Australian staffing issue which has been resolved. The overall impression is that with due diligence we can expect more of the same this current year, as recent developments come into play. Disappointingly down so far on the day. Not the first time that's happened with solid, progressive results.

[suneday] 29/4/2019 08:25

Last broker update
Castleton Technology (CTP): Corp
Positive trading update
Castleton has released a full-year trading update confirming performance in line with unchanged forecasts: EBITDA of not less than £6.3m (vs £6.3mE) is expected from revenue from not less than £26.3m (£26.5m), with operating cash conversion (of EBITDA) of 95% (95%E). The group’s strategic opportunities for growth are supported by this continued proof of strong cash generation – forecast to reduce net debt to negligible levels of close to net cash by March 2020. After a busy and constructive year including the acquisition of Deeplake (a digital communications platform) and acquisition and consequent insourcing of its outsourced offshore R&D operations, we look forward to prelims in June for more detail on the clearly effective growth drivers. Target 125p reiterated.

[sharesoc] 22/4/2019 15:15

Castleton are exhibiting at Mello2019 which may be worth attending
ShareSoc have a special discount for our full members to the Mello2019 show! So, if you are planning on going to the Mello event it may be worth joining us as a full member too here:
You can save up to £60 on the £149 ticket if you join ShareSoc!

[newtothisgame3] 09/4/2019 02:55

#Castleton #Technology (#CTP) Buy. revenues of not less than £26.3m, and adjusted cash profits of no less than £6.3m, “representing continued good organic growth”.

[suneday] 08/4/2019 12:21

Trading update today. All according to plan, with debt decreasing. No further mention of dividend - promised but not yet delivered.

[suneday] 08/4/2019 12:18

Trading update today. All according to plan.