REG - Checkit PLC - Trading Update and Notice of Interim Results

CheckitAnnouncement

11/08/2022 07:00

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RNS Number : 6098V  Checkit PLC  11 August 2022

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.

 

11 August 2022

 

Checkit plc

("Checkit" or the "Group")

 

Trading Update and Notice of Interim Results

 

Checkit plc (AIM: CKT), the intelligent operations platform for the deskless
worker, provides an unaudited trading update for the six months ended 31 July
2022 ("H1 FY23").

 

 (£'m) Reported      Six months to
                     31 July 2022  31 July 2021  % Change

                     Actual        Actual
 ARR                 10.2          6.9           48%

 Revenue
    Recurring        4.4           3.1           +44%
    Non-recurring    1.0           4.8           (79) %
 Total Group         5.4           7.9           (31) %

 

 

 

 

 

 

 

 

 

 

Note:

 

1.    Annual Recurring Revenue ("ARR") is defined as the annual value of
contracted recurring revenue as at the period end date.

 

ARR growth has performed in line with market expectations in H1 FY23,
reflecting resilience despite a challenging macroeconomic environment.
Additional bookings growth has been flat in the period compared to last year,
reflecting the impact of market conditions on pipeline progression.

 

Recurring revenue growth reflects bookings in FY22. Recurring revenue
accounted for 82% of total revenue for the first six months of the year. This
is a significant change from H1 FY22, where recurring revenue only accounted
for 39% of total revenue, demonstrating Checkit's successful transformation
into a subscription business.

 

Non-recurring revenue declined as planned in line with the Board's
expectations. The Group is now wholly focused on delivering recurring revenue
from its technology solutions, rather than one-off projects with minimal
software input.

 

Cash

 

Cash at 31 July 2022 was £19.5m (31 January 2022: £24.2m).

 

The Group continues to benefit from a strong balance sheet and in light of
market conditions, the Board is accelerating its plan to achieve
profitability. An update will be provided in the interim results announcement,
expected to be issued on 15 September 2022.

 

Kit Kyte, Chief Executive Officer, commented:

 

"Our performance in the first half of the year shows how critical Checkit is
to our customers' operations and how we can help businesses facing growing
pressure to ensure that operations are efficient, compliant and sustainable.
The resilience of the Company in navigating the challenges caused by the
pandemic and current macroeconomic back drop, has been encouraging. We remain
confident that the business will deliver long-term value to our shareholders."

 

 

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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