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10 Nov 2020 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE WITHIN THE PUBLIC DOMAIN.
10 November 2020
Checkit plc
("Checkit" or the "the Group")
Trading update
The Group provides a trading update for the nine months to 31 October 2020. A summary of the Group's unaudited Revenue for the three months to October 2020 ("Q3 FY21") and year to date is as follows:
REVENUES (UNAUDITED) (£m) | |||||||
Three months to | Nine months to | ||||||
| 31 Oct 2020 Actual | 31 Oct 2019 Actual | Change % | 31 Oct 2020 Actual | 31 Oct 2019 Actual | 31 Oct 2019 Normalised* | Change Normalised* % |
Checkit Connect: | |||||||
Recurring | 1.3 | 1.0 | +30% | 3.6 | 2.2 | 2.9 | +24% |
Non-recurring | 0.3 | 0.5 | (40) % | 1.4 | 1.0 | 1.5 | (7) % |
Total Checkit Connect | 1.6 | 1.5 | +7% | 5.0 | 3.2 | 4.4 | +14% |
Total Checkit BEMS | 1.8 | 1.9 | (5) % | 4.8 | 3.4 | 5.2 | (8) % |
(Non - recurring) | |||||||
Total Group | 3.4 | 3.4 | 0% | 9.8 | 6.6 | 9.6 | +2% |
* Normalised sales illustrate sales that would have been included in the Group's financial results had Checkit UK Limited, which was acquired on 14 May 2019, been owned by the Group throughout both periods.
The business performed ahead of the Board's expectations during Q3 FY21.
The period saw an improvement in the Checkit BEMS revenue run rate compared to Q2, as government restrictions eased and field engineers returned to customer sites for installation projects. A first half slowdown in sales of lower margin installation business (due to COVID-19) resulted in a 5% decline in the Checkit BEMs revenue line compared to the prior period.
Checkit Connect Recurring revenues for Q3 FY21 grew 30% compared to the prior period, continuing the trend reported in the Group's interim results. During the period there were further conversions of existing annual calibration and maintenance contracts into subscription-based income.
Cash
Cash at 31 October 2020 was £12.4m (31 January 2020: £14.3m; 31 July 2020: £13.4m).
Outlook
The Board continues to monitor the situation in view of the current uncertainties but remains confident in the medium and long term opportunities for the business.
Forward looking statements
This document 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 document are made as of the date hereof, and Checkit undertakes no obligation to update any of its forward looking statements
Checkit plc +44 (0) 1223 371000
www.checkit.net
Keith Daley (Executive Chair)
Aylsa Muir (Chief Financial Officer)
N+1 Singer (Nominated Adviser & Broker) +44 (0) 20 7496 3000
Shaun Dobson / George Tzimas (Corporate Finance)
Rachel Hayes (Corporate Broking)
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