8th Sep 2014 08:53
LONDON (Alliance News) - Castleton Technology PLC Monday posted a narrowed pretax loss in the year to end-March, as it undertook widespread restructuring and changed its name from Redstone PLC in its efforts to become an IT managed services business.
The company posted a pretax loss of GBP1.3 million, narrowed from a loss of GBP1.8 million in the previous year, as administrative expenses rose, although this was offset by lower finance costs, and higher finance income.
The company had no revenue for the year, as its business units were considered 'discontinued' as they were sold or held for sale. As a result, the company's results only reflect the costs of running the company for the year, not the trading businesses.
The company demerged its network based managed service business to Redcentric PLC last April, and then sold its Comunica Holdings Ltd and QAD software consultancy business for GBP9.7 million. Following the period end it also sold its software and consultancy business ABS for GBP750,000.
After this series of disposals, the company said it now believes its restructuring is complete.
Castleton is aiming to move into the IT managed services in the public and not-for-profit sectors, and said that its acquisition of IT managed services business Montal Holdings Ltd following the period end was a "first step on this journey."
During the year the company focused on cost control whilst it sought acquisition targets, with the board taking half pay between February 1 and June 30 2014. Full pay was reinstated with the start of the company's current investment programme.
Going forward, the company said that the next phase of its strategy will be to find complementary businesses to join Montal.
"The IT services market in the UK is a very interesting space at this time. It is very fragmented in nature, which presents the type of opportunities we, as the board of Castleton, are looking for," said Chief Executive Ian Smith in a statement.
Shares in Castleton Technology were trading up 2.5% at 1.38 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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