Checkit plc is listed on the AIM market and has a market cap of £38million. The company had £11.5m of net cash at the year ended 31st January 2021. The company provides advanced cloud-based services and devices that connect people, processes and places in real time. Their solutions improve company efficiency and productivity.

Full year results to 31st January 2021 were published on 29th April and we were delighted to have the management team present at the webinar covering a year with a difficult backdrop where they performed well. Present were Keith Daley Chair, Aylsa Muir CFO and Kit Kyte CCO. A recording of the webinar is available here.

The year started well but growth stalled with the onset on Covid-19 and budgets needed to be reset. Overall revenue grew to £13.2m, an increase of 3% and more than half is now either recurring or repeatable. The non-recurring component was most impacted by Covid as this is carried out by engineers visiting client sites and this was impossible for many months of the year. In that context, the company was pleased with the performance delivered, particularly the Annual Recurring revenue which grew 46% to £5.7million. Close control of costs resulted in the operating loss reducing to £3.1m which was after £2.5m being spent on new product development.

Looking closer at the revenue split, recurring revenue accounts for 39% of the total revenue. Repeatable business accounts for a further 14% and combined, these two components now account for 53% of revenue up from 47% last year. ARR has grown £700k from new subscriptions, £600k from converting existing ad hoc contracts, primarily in the healthcare sector, to subscription contracts and £500k from price increases. Aylsa commented that the learnings from this revenue growth have put them in a good place for further growth in recurring revenue in the current year.

The presentation then moved on to how the organisation has been restructured to reflect a more commercial focus. Key personnel have been recruited to head up sales namely Kit Kyte the CCO, and Steve Peck to lead the US business. Work is underway to ensure the company is in a position to scale quickly and internationally and the recent product update enabling ‘self-serve installation’ is a key part of this strategy. On the customer front, they are focussing on providing better customer experiences and working in partnership with their…

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