15 February 2024
Checkit plc
("Checkit" or the
"Group)
FY24 Trading Update
Checkit (AIM: CKT), the intelligent operations
platform for the deskless worker, announces its unaudited trading
update for the year ended 31 January 2024 ("FY24").
·
Annual recurring revenue ("ARR"1) growth of 16% to
£13.3m, in line with expectations
·
Focus on path to profitability is anticipated to result in
better than expected losses ("LBITDA"2) halving
year-on-year to £3.4m
·
Recurring revenues provide good visibility for future periods
underpinned by a high net revenue retention3 of
111%
(£'m) Reported
|
Twelve months
to
|
|
31 January
2024
|
31
January 2023
|
%
Change
|
ARR
|
13.3
|
11.5
|
16%
|
|
|
|
|
Revenue
|
|
|
|
Recurring
|
11.2
|
9.6
|
+17
%
|
Non-recurring
|
0.8
|
0.7
|
+18
%
|
Total Group
|
12.0
|
10.3
|
+17 %
|
|
|
|
|
Kit Kyte, CEO
of Checkit, commented: "The second half of the year has seen
further progress on our stated strategy and our drive towards
profitability. Our new AI enhanced products are, we believe, best
in class and a step change ahead of what's currently available in
the market. We will continue to focus on driving top-line growth in
the business and look forward to FY25 with
confidence."
Results
Revenue has grown by 17% to £12.0m, in line
with market expectations despite the challenging global economy.
Our 'Land and Expand' strategy of up-selling and cross-selling has
generated growth from our existing customer base, whilst at the
same time we have actively identified areas of expansion and
opportunity both geographically and vertically. With
recurring revenues now representing 93% of the total and our high
net revenue retention of 111%, we have a sound base to pursue our
drive towards profitability.
Our focus on gross margin expansion continues
to deliver and we expect losses (adjusted LBITDA) to be better than
expected and nearly halve for the year to £3.4m (2023: LBITDA of
£6.4m) as we drive operational efficiencies and carefully manage
costs across the business.
Our cash position at the end of year was £9.0m
(31 July 2023: £12.8m), reflecting the 46% reduction in LBITDA and
the strategic purchase of inventory to mitigate supply chain
constraints in the market. We expect this position to unwind over
the next 12-18 months, supporting further revenue
growth.
Product
Update
During the year, utilising the data we collect
and new AI and ML tools, we have successfully added new
functionality to our products that will allow our customers to
deliver sustainability and energy saving initiatives and benefit
from predictive maintenance of their assets. This is being actively
trialled by one of our largest customers and we are confident that
these developments will provide significant value to the Group and
our customers.
We have continued to invest in our products and
our markets and we are gaining traction geographically, with 26% of
ARR now generated in the US, and as we develop our offerings to
address new sectors, such as food manufacturing and R&D
laboratories.
We will provide further detail on our product
strategy and the path to profitability at the time of our FY24
Results announcement in April 2024.
The Group's management team will
host a live webinar which will include an opportunity for questions
at 14:00 (GMT) today. The webinar can be accessed via the news area
of the website
at https://www.checkit.net/news/ or
by using this link:
https://www.investormeetcompany.com/checkit-plc/register-investor
NOTES
1. Annual Recurring
Revenue ("ARR") is defined as the annualised value of contracted
recurring revenue from subscription services as at the period end,
including committed annual recurring revenue from new
wins.
2. Adjusted LBITDA is
the loss on operating activities before depreciation and
amortisation, share based payment charges and non-recurring or
special items. Analysts' Adjusted LBITDA expectations for FY24 were
£3.6m.
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 year.
For further
information, please visit www.checkit.net or contact:
Checkit plc
Kit Kyte (Chief Executive
Officer)
Greg Price (Chief Financial and
Operations Officer)
|
+44
(0) 1223 643313
|
|
|
Singer Capital Markets (Nominated Adviser &
Broker)
Shaun Dobson / Harry Gooden
/ James Fischer
|
+44
(0) 20 7496 3000
|
|
|
Tavistock
(Financial PR)
Lulu Bridges / Katie Hopkins / Simon
Hudson
|
+44 (0) 20
7920 3150
|