Castleton Technology plc (AIM: CTP), the software and managed services provider to the public and not-for-profit sectors, is pleased to announce that it has secured two multi-year contracts extending the Group’s contract base and level of recurring revenue across both its Managed Services and Software Solutions divisions.
The first is a seven year contract with North Hertfordshire Homes with a total contract value (“TCV”) of £2.6 million for the provision of a fully managed hosted desktop service.
The second is a three year contract with a community regeneration and housebuilding company for Castleton’s scheduling software product, Impact. The contract is on an annually recurring subscription basis with a TCV of £0.8 million over the three year term.
Dean Dickinson, CEO of Castleton, said: “These significant contracts are evidence of the progress we are making with our stated strategy of growing recurring revenue and moving away from one-off transactions. Furthermore, they are evidence of how well-placed we are to win new customers and bigger contracts within our chosen sectors. As we expand our customer base, we are also seeing increasing opportunities for upselling and cross selling other products and services across the Group, giving me great confidence in Castleton’s future prospects.”
Mick Gallagher, Director of Resources at North Hertfordshire Homes said: “We are delighted to be working with Castleton in supporting the transformation of our IT and Digital service offer to colleagues and customers alike. We have an ambitious road map for change and have great confidence that in working with Castleton that these changes will be achieved.”