REG - Checkit PLC - Trading update

CheckitAnnouncement

17/02/2022 07:00

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RNS Number : 9270B  Checkit PLC  17 February 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.

 

17 February 2022

 

Checkit plc

("Checkit" or the "Group")

 

Trading update

 

Checkit plc (AIM: CKT), the intelligent operations platform for the deskless
worker, provides an unaudited trading update for the year ended 31 January
2022 ("FY22").

 

 (£'m) Reported      Twelve months to
                     31 January 2022  31 January 2021  31 January 2021  % Change

                     Actual           Actual           Normalised       Normalised
 ARR                 8.2              5.7              5.8              +43%
 Revenue
    Recurring        6.8              5.1              5.2              +31%
    Non-recurring    6.5              8.1              9.2              (29) %
 Total Group         13.3             13.2             14.4             (7) %

 

NOTES

 

1.    Annual Recurring Revenue ("ARR") is defined as the annual value of
recurring revenue relating to contracts that have been installed and are
therefore invoiceable. Future revenue relating to bookings taken, but which
have not been installed, is excluded from reported ARR.

2.    Prior year revenue has been normalised to illustrate revenue that
would have been included in the Group's financial results had Tutela LLC
(acquired 4 February 2021) been fully owned by the Group throughout both
periods.

 

The better than expected ARR performance was driven by strong H2 sales
bookings.

 

The Group delivered bookings growth of 95% in the period, underpinning the
Board's confidence in delivering strong ARR growth in FY23 and beyond.

 

Recurring revenue includes like-for-like US recurring revenue growth of 82%,
driven by the bookings performance noted above. The lag in Group recurring
revenue percentage growth, compared to the growth rate of ARR reflects the
acceleration in ARR of contracts signed during the second half of the
financial year.

 

Recurring revenue accounted for 51% of total revenue for the full year. In the
last three months of the year, recurring revenue contributed 75% of total
revenue as Checkit continued its transformation into a pure software as a
service ("SaaS") business.

 

Non-recurring revenue declined in line with management's expectations as
planned. The Group is now wholly focused on delivering recurring revenue from
its technology solutions (including those relating to smart buildings), rather
than traditional BEMS one-off projects with minimal software input. In the
Group's FY22 results, Checkit will cease reporting the BEMS business as a
separate segment and instead will segment recurring and non-recurring revenue.

 

Cash and Outlook

 

Cash at 31 January 2022 was £24.2m (31 January 2021: £11.5m), reflecting the
recent oversubscribed placing, when the Group raised net proceeds of
approximately £20.0m. As a result, Checkit is strongly positioned to
accelerate its programme of investment, with the intention of achieving
further ARR growth in FY23.

 

The Board remains confident in the significant opportunities presented by the
growing deskless worker industry and a further update will be provided as part
of the preliminary results announcement expected to be issued on 28 April
2022.

 

 

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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