10th Mar 2016 12:03
LONDON (Alliance News) - Castle Street Investments PLC on Thursday said its future is as a "well-funded consolidator" in the information technology services and cloud-computing sector.
Reporting a net profit of GBP750,000 in 2015, versus a GBP10.6 million net loss in 2014, the company said its earnings were not representative of its future. The company generated a profit before tax and loss on disposal of discontinued activities of GBP1.1 million, versus a loss of GBP4.1 million in 2014. Previously known as Cupid PLC, the company dumped its online dating assets and became Castle Street in January 2015.
In January, Castle Street completed the acquisition of Selection Services Investments Ltd, an IT services and cloud-computing company in the UK, in a reverse takeover for an enterprise value of GBP34.8 million, raising GBP30.0 million in equity to back the move. Selection has performed "satisfactorily" since June 30, Castle Street said, and is now able to bid for public sector contracts in the UK.
C4L Group Holdings Ltd, a network services and data centre hosting business, was acquired for GBP20.2 million the next month, and has "traded well" since October 31, according to Castle Street.
"The group is now well positioned as a consolidator within the United Kingdom IT services sector where we believe there is an opportunity to increase shareholder value through organic and acquisitive growth," Chairman Jonathan Watts said.
Shares in Castle Street were down 0.6% at 39.00 pence on Thursday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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