Last checked at 11 Aug 2022 07:00
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 Actual | 31 July 2021 Actual | % Change |
ARR | 10.2 | 6.9 | 48% |
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Revenue |
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Recurring | 4.4 | 3.1 | +44% |
Non-recurring | 1.0 | 4.8 | (79) % |
Total Group | 5.4 | 7.9 | (31) % |
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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.