Castleton Technology trades in line as organic growth continues

8th Apr 2019 09:43

(Sharecast News) - Software and services provider Castleton Technology witnessed some "good" organic growth in its last trading year, leaving both revenues and earnings in line with expectations.Castleton now expects revenue to be no less than £26.3m in the year ended 31 January, with adjusted EBITDA set to come in at around £6.3m.Cash generation in the period was "solid", resulting in an expected minimum operating cash conversion rate of 95% of adjusted EBITDA, facilitating a continued reduction in the company's net debt.The company achieved a number of key operational milestones during the year, most notably, the delivery of its integrated product suite for two customers, a significant contract win with Connect Housing Association for its fully integrated solution and an additional managed services contract with DGHP.Chief executive Dean Dickinson 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 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."As of 0945 BST, Castleton shares had inched back 0.43% to 111.02p.