Castleton Technologies shares drop despite revenue growth

Software and managed service provider Castleton Technologies (LON:CTP) reported a 13% improvement in revenues for the year ended 31st March. Adjusted EDITDA and EBITDA margins were both up by 24%, but recurring revenues grew slightly slower than the overall level.

CEO Dean Dickinson commented: “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.

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“.

Castleton Technologies shares dropped by 2.16% to 104.20p (as of 14:05 BST).