Castleton dedicated to integration as it reports small loss
Firm owned by MXC Capital founder Ian Smith records loss of £100,000 for its last fiscal year
Public sector software provider Castleton Technology has said its focus is now on the integration of its acquired firms, as it reported a small loss for its last financial year.
For its year ending 31 March 2015, the company – formed in 2013 out of the remnants of Redstone – made an adjusted EBITDA loss of £100,000, compared with a loss of £1m in its previous year. This was on revenues of £6.1m.
It has been a busy 12 months for the firm, owned by channel entrepreneur Ian Smith, with it acquiring four IT services and software companies, in the shape of Montal, Documotive, Opus and Keylogic. After its financial year end, Castleton snapped up financial software company Brixx Solutions and social housing software firm Impact Applications for a combined total of £10m in June.
Ian Smith, Castleton's chief executive, said the acquisitions the company has made put it in a strong position.
"With four acquisitions made during the year and two further acquisitions post year-end, Castleton is on its way to being the pre-eminent supplier of software and IT services to the social housing sector as well as a leading niche player in the wider public and not-for-profit sectors; nearly a third of all the social housing associations in the UK are now Castleton customers," he said.
Smith added that Castleton's focus is now on the integration of these businesses.
"The acquisitions of Brixx and Impact post year-end complete the initial steps in building our platform; our focus will now be on integrating our products and services," he said.
Smith, who has previously told CRN he intends to make nine acquisitions with his Castleton venture, indicated this strategy is likely to remain in place.
"We will also continue to look for strategic acquisitions that will add value and complement our existing services and products," Smith said in the results.
As well as acquisitions, Castleton also made two disposals last year. Its Maxima Information Group Limited business was sold to software firm PDMS UK for £800,000 in September 2014, and the consultancy division of Montal Computer Services Limited was sold to its management in February.
David Payne, Castleton chairman, said he is hopeful for the upcoming financial year, which will include a full-year contribution from Montal, Documotive, Opus and Keylogic and 10 months' from Brixx and Impact.
"The management are now fully focused on integrating the companies that have been acquired into a seamless provider, adding value to our customer base; the new financial year is progressing well with the group trading in line with market expectations. The board is optimistic for the group's prospects," Payne said.