TIDMCKT
RNS Number : 0687Q
Checkit PLC
16 February 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF UK MARKET ABUSE REGULATION . UPON THE PUBLICATION OF THIS
ANNOUNCEMENT THIS INSIDE INFORMATION IS CONSIDERED TO BE WITHIN THE
PUBLIC DOMAIN.
16 February 2023
Checkit plc
("Checkit" or the "Group")
Trading Update and Notice of Results
Checkit plc (AIM: CKT), the intelligent operations platform for
the deskless worker, is pleased to report an unaudited trading
update for the year ended 31 January 2023 ("FY23").
(GBP'm) Reported Twelve months to
31 January 31 January % Change
2023 2022
Actual Actual
ARR(1) 11.5 9.0 28%
Revenue from
continuing operations
Recurring 9.6 6.8 +41%
Non-recurring 0.7 1.6 (58) %
Total Group 10.3 8.4 22%
-- ARR increased by 28% to GBP11.5m, vs. consensus market expectations of GBP10.8m (+20%)
-- Net cash at 31 January 2023 of GBP15.6m vs. consensus market expectations of GBP15.2m
ARR growth was better than expected during H2 amidst a
challenging economic and political environment, driven by
consistent sales momentum, with contracts signed offering further
expansion opportunities underpinning the Board's confidence in
future growth.
Checkit has continued to expand into the US market, achieving
91% year on year ARR growth to GBP2.8m as a result of a number of
contract wins, including continued growth in its footprint with its
biopharma customers and a new contract with a large resort and
casino operator. These new contract wins have the potential to grow
significantly over time. Our US business is on track to be the
largest revenue contributor of the Group.
Checkit has also renewed one of its largest existing enterprise
contracts with an integrated energy company to provide real time
operations management capability to over 300 sites, which evidences
the value and stickiness of the platform and IoT offering.
Recurring revenue growth has exceeded 30% for the third
consecutive year and now accounts for 93% of total revenue,
demonstrating Checkit's successful transition into a
subscription-based model.
Non-recurring revenue declined compared to FY22 as planned,
driven by the ongoing conversion of US customers from maintenance
contracts to subscription income during the year.
Following the decision to close the BEMS business unit, this is
now reported as a discontinued operation. Revenue from discontinued
operations in the year amounted to GBP0.6m (FY22: GBP4.9m). The
Group is now wholly focused on delivering recurring revenue from
its technology solutions.
Cash
Net cash at 31 January 2023 was GBP15.6m (31 July 2022:
GBP19.5m).
The Group continues to benefit from a strong balance sheet and
in light of market conditions, will continue to execute against its
growth strategy and develop its technology, whilst also applying
increased focus on its plan to drive further operating efficiencies
and accelerate its path to profitability.
A further update will be provided as part of the preliminary
results announcement to be issued by the end of April 2023.
Kit Kyte, Chief Executive Officer, commented: "We are pleased to
have delivered strong growth in ARR and a robust cash position,
both of which are ahead of market expectations. We expect the
positive sales momentum to continue and as we enter FY24, we will
look to continue to expand our US presence and build on the
successes of the past year."
Investor presentation
Kit Kyte (CEO) and Greg Price (CFO) will provide a live
presentation via the Investor Meet Company platform at 12pm today.
This presentation is open to all existing and potential
shareholders.
To register please click on the following link:
https://www.investormeetcompany.com/checkit-plc/register-investor
Investors who already follow Checkit on the Investor Meet
Company platform will automatically be invited. Questions can be
submitted at any time during the live presentation.
Note:
1. Annual Recurring Revenue ("ARR") is defined as the annual
value of contracted recurring revenue as at the period end date.
This has been restated from the prior year (reported ARR of
GBP8.2m), where it related only to contracts that were
installed.
Contacts:
Checkit plc +44 (0) 1223 643313
www.checkit.net
Kit Kyte (Chief Executive Officer)
Greg Price (Chief Financial Officer)
Singer Capital Markets (Nominated Adviser & Broker) +44 (0)
20 7496 3000
Shaun Dobson / Harry Gooden / George Tzimas
Forward looking statements
This announcement contains forward looking statements with
respect to the business, strategy and plans of Checkit plc and its
current goals and expectations relating to its future financial
condition and performance. Statements that are not historical
facts, including statements about Checkit or management's beliefs
and expectations, are forward looking statements. By their nature,
forward looking statements involve risk and uncertainty because
they relate to events and depend on circumstances that will occur
in the future. Checkit's actual future results may differ
materially from the results expressed or implied in these
forward-looking statements as a result of a variety of factors
among other things, the economic and business circumstances
occurring from time to time in the countries, sectors and business
segments in which the Group operates. The forward-looking
statements contained in this announcement are made as of the date
hereof, and Checkit undertakes no obligation to update any of its
forward-looking statements.
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END
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February 16, 2023 02:00 ET (07:00 GMT)
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