Join our community of smart investors

Castleton crashes on profit warning

The software group has reported weaker one-off revenues
October 11, 2019

Shares in Castleton Technology (CTP) crashed by around 40 per cent on news that first-half trading was behind expectations.

IC TIP: Sell at 55p

The second quarter was much weaker, with lower one-off revenues exacerbated by a strong comparative. In the first quarter, Castleton – a provider of software and managed services to the public and not-for-profit sectors – underwent a reorganisation process. Chief executive Dean Dickinson said that this had taken longer, and been more disruptive, than imagined. 

But the group still believes that its transition towards a ‘One Castleton’ model – facilitated by the merger of its two divisions, software solutions and managed services – will fuel future growth.