Dean Dickinson, CEO
The product launches 14:55
The opportunity 17:30
Growing customer base, SaaS order intake & contracted backlog 19:10
Haywood Chapman, CFO
Recurring revenues 19:55
Short term priorities 21:05
Longer term priorities 23:42
Summarising the investment case 24: 32
Annualised EBITDA target is £30k, whats the timescale and underlying financial model? 26:01
With product suit and existing customers, whats the essential component of the product suit which is easiest the monitise? 28:08
Can you tell us about the value proposition that you offer to customers? 29:53
How many stand-alone systems do you run at the moment? 33:08
I have mentioned the potential of CTP on this board a few times but have not generated any interest . Not sure why, it is possibly the best kept secret on AIM with fantastic management and a very clear plan. Worth some research and then investment!
CTP is a company well worth looking at for serious investors. Superb management with loads of experience, profitable, clear plan to take over small, usually 'not for profit' companies, plenty of money available for acquisitions, extra finance now available through MXCP which will begin to trade on AIM on Thursday, ambition to be mini-Capita (Capita chairman is on board already). Market gradually waking up to a very unusual AIM company ie it is a real company already making real profits with a real management team who have invested their own money. Much better info on the LSE board, mostly from Jimarth so have a read and make your decision. Up 80% this week but I, and plenty of others, see another 500% soon. I am not ramping and all I am suggesting is that it is worth a look and some research.
This is in my view a very interesting and potentially lucrative small company in which to invest, Given that it has excellent directors and very experienced management who have invested their own money and who have confirmed their intention to acquire a variety of small IT services companies, becoming a 'mini-Capita' in the process. The shares have gradually increased from the .8 to .9 range to the present 1.05 to 1.2 and the potential for further upside seems very attractive. Follow the management is usually good advice but DYOR. I did that some months ago and hold almost 2 million shares. The only issue is the very wide spread, sometimes as much as 15% but the upside seems to me to far outweigh this.
Probably have to wait till November for the next acquisition, I'm disappointed the share price hasn't responded as well as I had hoped, at least it's a step in the right direction - see :http://bit.ly/1wmtDuu the bit I like -
The Company's strategy remains to seek further acquisitions in the technology sector. Clear opportunities exist to build a scale managed services business given the fragmented nature of the sector and MXC Capital Limited's ("MXC Capital") access to suitable targets and the Board will focus on exploring these opportunities. Castleton also retains ownership of MIG, a software business focused on supporting a range of its own developed and proprietary ERP, reservation and ticketing and payroll software products.
The Company has invested the majority of its own cash resources to finance the Acquisition, however the Company is due to receive £1.1m in November 2014 as deferred consideration in relation to the sale of Comunica Holdings Limited for £9.5m in November 2013 and a further £300k deferred consideration from other recent disposals. As the financing of the Acquisition is substantially in cash, the Company has successfully sought bank support for a £0.5m facility in the event it is required.
Those of us who have always believed that any company managed by Ian Smith will deliver growth will be delighted today that our 'sleeper' investment in a very small, unheralded company has been justified. I bought well over 1 million shares and have always hoped that Castleton will see the same growth as COMS. We shall see.
Touch of deja vu today with near 25% rise. Hopefully this isn't another false dawn, I'm still holding and can't see any changes to why I bought in the first place ie good management with a proven record, no debt and profit making. Just need a deal or two to be announced and we'll be away..
I bought these a couple of months ago...nicely into profit at this stage but will be holding as I think these will rocket on its first deal. MXC are also into RGO and Coms has been a multi-bagged for some.
All my research, together with my trust in the excellence and experience of the management team and the fact they have invested so much of their own money, reinforces my view that this will be the next share to explode like COMS. I got in at .71 and will be staying for the ride.
I have done that too. My reason is to do with the excellent management team (like that of COMS), particularly impressed that they have bought almost £1,000,000 of shares which gives them a pretty strong incentive. I think it will rise quickly as word spreads on the boards and investors begin to see it as the next COMS. That is already happening, as can be seen by the volumes yesterday and today which are enormous compared to the last few weeks. I am glad I am in but did my own research first before joining what will soon become a throng!
Chairman David Payne said: "The disposal of Comunica presents a good opportunity for the company, led by an experienced management team, to seek opportunities to maximize the value of the remaining trading businesses in order to generate higher returns for investors, which may include strategic acquisitions within the technology sector. The net cash position will be invested for these purposes.
"The board, and in particular Ian Smith and Tony Weaver (Chief Executive and Non-executive director respectively), has a proven track record of investment in this sector," he said
Group net borrowings of £4.2 million (2012 £1.6 million). All borrowings repaid subsequent to the period end following the disposal of Comunica, returning the Group to a net cash position of approximately £3.0 million immediately on disposal
§ Group now set to seek new opportunities in the technology sector
David Payne, Chairman of Castleton commented:
"The disposal of Comunica presents a good opportunity for the Company, led by an experienced management team, to seek opportunities to maximize the value of the remaining trading businesses in order to generate higher returns for investors, which may include strategic acquisitions within the technology sector. The net cash position will be invested for these purposes."
2. mgmt./major holders
MXC Capital Ltd (dup) 159,741,084 25.61
Anthony Charles Weaver* 159,616,084 25.59
Ian Andrew Smith* 159,616,084 25.59
Henderson Global Investors Limited 126,478,094 20.28
Kestrel Partners LLP 81,764,266 13.11
BlackRock Inv Management (UK) Ltd. 27,595,963 4.42
Zaphirou Zarifi Overseas Equities Inc 18,825,000 3.02
Ian Smith (The CEO)
Chief Executive Officer
A highly experienced IT and communications industry developer of new business. Ian has held senior sales positions with Dataworkforce, Cisco Systems, Foundry Networks and Cable & Wireless.
Most recently, for 7 years as CEO of Xploite plc, Ian was responsible for the buy, build and sell strategy that saw 26 corporate transactions including 2 substantial disposals and the creation and return of c£20m of cash to the companys shareholders.
of note is the RNS on 7th Jan where a company representing interests of Smith and Weaver bought 10mln shares and with Smiths SIPP gives him 25% of the company
as alluded to above, they have no debt and cash of £3mln for mkt cap of £4.5mln, so essentially are a cash rich "shell company"
Market cap = £4.43m Cash & defferred cash £4.85m remaining business generating £0.65m EBITA, on 7.5x = £4.9m TOTAL = £9.7m
4. expected news:
this we are not sure of, so its really a play on mgmt. expertise in acquiring share enhancing businesses.
5: legacy issues
the questions remain about Redstone, and they had pretty poor history, and this is just one snipet from the www.iii.co.uk CTP board
Redstone is changing its name to redcentric and issuing more shares etc.
read all the news.
I have watched Redstone for years, a bit like Sync who changed its name from Data after years of fund raising - share dilution - and then consolidation and then after last consolidation company sold out. and and over the years I lost and lost and lost, thinking it was all going to come good one day.
You never know Redstone - Redcentric just might come good one day if you are a new investor http://www.iii.co.uk/investment/detail?code=cotn:CTP.L&display=discussion&it=le
if you want to take a punt on the mgmt. delivering and putting money where their mouth is, if you are willing to "fly blind" with no real chart or newsbased reference point and simply take an educated guess that with £3mln cash CTP aren,t going to need any cash for 12-15mths, then I would advice buying @ 0.70p, and seeing where it goes, COMS ( un
Just had another call from an "Acquisition Specialist" offering to buy my shareholding from between £8 - £16 per share. Tax free! - don't know how he was so certain that the UK tax man would see it that way
Lots of blarney about needing 51% of the shares and this would be my final chance etc etc etc.
Warning that my shares could be valueless as the company is currently under investigation for share manipulation. But! I will need to sign a non-disclosure agreement as this is currently not well known. Seen this before as I guess many of you have.
Anyway for what it's worth he gave his details as:
CAIMI ACQUISITION TEAM
201 Miami Center
Miami, FL 33131
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