logo-loader

Castleton Technology upgraded after interims

Published: 11:20 15 Dec 2015 GMT

shutterstock_254656792
Now focused on the not-for-profit sector and social housing in particular

Broker finncap has raised its price target on social housing software specialist Castleton (LON:CTP) by 21% after interim results.

Castleton flagged half year underlying profits of £1.7mln (loss £0.1mln) in a trading update in October though after one-offs and impairments there was an interim loss of £1.43mln.

Revenues for the period rose to £8.5mln (£1.9mln) as new acquisitions Brixx and Impact contributed for four months.

David Payne, chairman, said: “The businesses we have acquired over the past 15 months are bedding in well and early signs from our customers are encouraging.

“With a strong core of recurring revenue, I am confident we can maintain organic revenue growth whilst we accelerate the number of our customers taking more of our services. “

Finncap noted the results reflected substantial corporate activity, including acquisitions, a loan note conversion, share consolidation and a placing.

Now focused on the not-for-profit sector and with further acquisitions likely to boost the 16% organic growth, the broker raised its price target to 90p from 74p.

Shares eased 6p to 76.5p.

FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

1 hour, 4 minutes ago