Castleton Tech seeking 'new opportunities' after transformational year

31st Dec 2013 10:23

Castleton Technology, the AIM-listed software and consultancy firm formerly known as Redstone, said it is now set to seek 'new opportunities' in the technology sector after a transformational first half for the company.During the six months to September 30th, the firm demerged from its network-based managed services businesses and disposed of its ICT infrastructure, data centre and smart buildings solutions division, Comunica Holdings. Comunica was sold to Coms for £9.5m in November, at which points Redstone was renamed Castleton.The company generated £1.2m of revenue from continuing operations during the period and adjusted operating profits of £0.4m. These include results from the continuing software support and consultancy business only. The pre-tax loss from continuing operations narrowed to £0.4m, from £0.9m the year before.Discontinued operations generated £12.9m of revenue during the half, compared with £28m the year before.Meanwhile, the company booked a pre-tax loss from discontinued operations of £3.1m, compared with a profit of £1.1m previously, due to a £3.4m impairment charge in respect of goodwill arising from the disposal.Chairman David Payne said: "The disposal of Comunica presents a good opportunity for the company, led by an experienced management team, to seek opportunities to maximize the value of the remaining trading businesses in order to generate higher returns for investors, which may include strategic acquisitions within the technology sector. The net cash position will be invested for these purposes."The board, and in particular Ian Smith and Tony Weaver (Chief Executive and Non-executive director respectively), has a proven track record of investment in this sector," he said.The stock was up 26.32% at 0.6p by 10:55 on Tuesday.BC