TIDMCKT
RNS Number : 8559I
Checkit PLC
10 August 2023
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.
10 August 2023
Checkit plc
("Checkit" or the "Group")
Trading update, notice of interim results and contract
renewal
Checkit plc (AIM: CKT), the intelligent operations platform for
the deskless worker, provides an unaudited trading update for the
six months ended 31 July 2023 ("H1 FY24") and announces the renewal
of a significant contract. The Group will publish its interim
results on 14 September 2023.
(GBP'm) Reported Six months to
31 July 31 July 2022 % Change
2023 Actual
Actual
-------- ------------- ---------
ARR 12.6 10.2 24%
-------- ------------- ---------
Revenue
-------- ------------- ---------
Recurring 5.4 4.4 +22%
-------- ------------- ---------
Non-recurring 0.3 0.4 (21) %
-------- ------------- ---------
Total Group 5.7 4.8 19 %
-------- ------------- ---------
ARR growth has continued to grow in line with market
expectations during H1 FY24, despite the uncertain economic
environment, driven by consistent execution of our "land and
expand" strategy, as well as high net retention rates.
Checkit's ability to grow with our customers is seen in a net
retention rate of 113% and a gross retention rate of 98%. Over 50%
of H1 FY24 ARR growth resulted from upsell and cross sell within
our current customer base, as they continue to see the productivity
and efficiency benefits which Checkit platform enables, with the
balance coming from new customer wins and pricing.
The Group has also continued its strong performance in the US,
with 41% growth in ARR to GBP3.2m (H1 FY23: GBP2.3m).
Recurring revenue growth reflects bookings achieved in FY23.
Recurring revenue accounted for 95% of total revenue in H1
FY24.
Cash
Net cash at 31 July 2023 was GBP12.8m (31 January 2023:
GBP15.6m).
In H1 FY24, Checkit has followed a programme of controlled
investment, with the intention of achieving further ARR growth
alongside an accelerated path to profitability.
The Group continues to benefit from a strong balance sheet and
in light of market conditions, will continue to execute against its
growth strategy and develop its technology, whilst also driving
further operating efficiencies on its path to profitability.
Contract Renewal
Checkit announces the renewal of our Framework Agreement with
John Lewis plc to provide connected workflow, automated asset
monitoring and digital building management solutions with improved
pricing for a further period of three years. The Framework
Agreement and associated services have a total contract value
across the three year term of c.GBP6m.
The agreement, effective from 1 August 2023, continues to
provide Waitrose and John Lewis shops with the opportunity to
benefit from Checkit's Connected Workflow Management (CWM),
Connected Automated Monitoring (CAM) and Connected Building
Management (CBM) services. Checkit will continue to provide
services to over 270 Waitrose core branch stores, 60 Waitrose
convenience branches, 30 John Lewis stores as well as offices and
distribution centres for both John Lewis and Waitrose.
Separately in April 2023, Checkit signed a master service
agreement (MSA) with Compass Contract Services (U.K) Limited
("Compass") for the provision of CAM and CWM to their end users,
primarily in the food services sector. Since signing the MSA with
Compass, Checkit has entered into 3 new contracts with Compass
.
Kit Kyte, Chief Executive Officer, commented:
"In H1 FY24, we saw strong upsell and cross sell from existing
customers as they look to streamline their organisations to improve
efficiencies and reduce costs.
Underpinned by a robust balance sheet, strong pipeline of new
business and increasing visibility, we look forward with confidence
in the Group's long-term prospects."
NOTES
1. Annual Recurring Revenue ("ARR") is defined as the annual
value of contracted recurring revenue as at the period end
date.
2. 31 July 2023 reflects continuing operations only and is
restated to exclude discontinued operations
3. Net revenue retention is defined as the amount of recurring
revenue from existing customers retained over the period, excluding
new wins in the last 6 months
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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END
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