Castleton Technology profits slip as higher costs bite
StockMarketWire.com - Castleton Technology said pre-tax profits slipped by more than a third as an uptick in revenue was offset by rising costs.
For the 12 months ended 31 March, profit before tax fell 35% to £1.19m, while revenue rose 13% to £26.4m, of which 58% was recurring.
Administrative expensive rose to £17.2m from £14.8m a year earlier, but the company still saw gross margin improve to 72% from 69%.
Adjusted earnings (EBITDA) was up 24% to £6.3m and operating cashflow rose 25% to £6.5m
'It has been another year of significant progress for Castleton, delivering strong organic growth at both revenue and EBITDA level underpinned by healthy cash generation. This has not only resulted in the continued reduction in net debt, but it has also enabled operational growth through the acquisition of Deeplake, the perpetual licence for our modelling solution, the launch of new digital solutions and expanded development capabilities with Castleton India,' said Dean Dickinson, CEO of Castleton.
'A number of milestone projects are now fully-live and operational with three early adopter sites for integrated solutions. These combined customer references have been a major contributor to us winning the new integrated solutions contract in January with Connect.'
'The early adopters and this new contract demonstrate the strength of our proposition, our ability to cross-sell and the trust our customers have in our capabilities to deliver on their vision for complete digital transformation.'
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