The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Sixth sense says this could go to a transatlantic player as it builds scale over there.
TU in 10 days time - decent price for entry. Was 28p a few weeks ago.
Edison also updated its note:
"On an EV/sales multiple of 1.0x for FY24e and 0.9x FY25e, Checkit trades at a material discount to the UK software sector (2.4x current year sales, 2.2x next year sales) and US SaaS peers (6.7x current year, 5.6x next year). If Checkit were to trade on the UK average for FY24e, it would be worth 39p per share and moving to trade in line with US SaaS peers would imply a valuation of 89p. Sustained ARR growth will be the key trigger for Checkit to attract a multiple more in line with SaaS peers, evidenced by customers signing up to use its software and existing customers expanding their usage. Faster movement towards break-even should also support the share price. "
"CKT has released a positive H1 update to July, which highlights continued strong ARR growth of +24% y/y to £12.6m, while FCF burn has almost halved - from £-5.0m to £-2.8m and so means Checkit is making meaningful steps towards breakeven. Progress on both fronts is very supportive of the investment case in our view. Driving this, CKT has continued to see very encouraging growth in the US – ARR: +41% y/y to £3.2m, while adjacent to this, upsell/cross-sell deals (with existing customers) also continues to be an important theme, thus providing predictable underlying growth. NRR of 113% also highlights this, while similarly, GRR continues to be very healthy too (at 98%) and reflects the mission critical nature and strong ROI of CKT’s hardware and software, in our opinion. In view of this very solid start, we our maintain our FY24 & 25 expectations - looking for continued healthy growth and a further narrowing of P&L losses profile, such that, in our view, it’s very conceivable CKT could reach breakeven in FY26 - and importantly – with existing cash resources. This increasing likelihood seems at odds with the company’s very modest 2x mkt cap/sales multiple and herein lies the opportunity."
This business is doing very well in a difficult market.
Perhaps a name change to Checkit AI would help the valuation?
https://www.investorschronicle.co.uk/ideas/2023/02/09/bargain-shares-2023/
Maybe bottomed now......Us deal encouraging.
Any updated forecast? Now looks set to make new lows.......was also very wrong here.
If you missed the FY results webinar y'day watch recording here.
43% ARR growth, Mgmt happy with mkt exp of 46% ARR growth this yr
Checkit products Improve productivity, compliance, management visibility on operations and staff retention
Https://youtu.be/10Gs0A-I7cA
Did i miss the update--can't find any ref of the thing? (Sorry if this a stupid question.)
Reminder FY results next week on 28/4
Webinar at 12pm with Kit Kyte CEO and Greg Price CFO: register Https://us02web.zoom.us/webinar/register/3116475075568/WN_eTaq6R5SQIGkVnk-6ZbLpg
Kit Kyte, CEO and Greg Price CFO, present the FY results to 31 January 2022 at a webinar on 28th April at 12pm. The latest trading update indicated Annual Recurring Revenue grew at 43% last year and during the last 3 months of the year recurring revenue contributed 75% of total revenue as Checkit continues its transformation into a pure software as a service business.
Register here: Https://us02web.zoom.us/webinar/register/3116475075568/WN_eTaq6R5SQIGkVnk-6ZbLpg
Oversubscribed - good outcome.
Tough morning to place stock.
It will be interesting to see how much they raise of the £20 million net target. The placing isn't underwritten and it's at a small discount to the recent share price. Let's hope Singer's do a good job this morning. The outcome will say a lot about professional investor perception.
At least the raise is clearly to fund the development of what looks like a growing pipeline. Checkit is in an interesting market so we'll see how things go from here. Might add on placing-driven technical weakness.
Now you know the reason for the SP slide - the market insiders knew what was coming. That said I think it's the right strategy to take advantage and expand now, particularly in the States. A little bit of short term pain for long term gain. GLA
When you are wrong, You are certainly wrong
Numptey boy Checkit are the bargain of the century why don’t you go and jump of a cliff or sniff glue which your probably doing anyway
Maybe they are people who believed that the price would never go below 50p.
Who are these sellers? Short sellers can’t be long term thinkers
A lot of selling recently but they won’t go below 50p Edison said profit in 2023 now looking like next year.
Just Simon updating results and 75p short term target although longer term could be much more.