Castleton Technology PLC Trading Statement (3450V)

TIDMCTP

RNS Number : 3450V

Castleton Technology PLC

08 April 2019

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 GBP26.3 million and adjusted EBITDA* of not less than GBP6.3 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 GBP1.3 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

 
 
   Enquiries: Castleton Technology plc              Tel. [phone] 
     Dean Dickinson, Chief Executive 
     Officer 
     Haywood Chapman, Chief Financial 
     Officer 
    finnCap Ltd                           Tel. [phone] 
     Jonny Franklin-Adams / Simon Hicks 
    Alma PR                               Tel. [phone] 
     Rebecca Sanders-Hewett/ Helena 
     Bogle/ Josh Royston 
 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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April 08, 2019 02:00 ET (06:00 GMT)