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Checkit Sees 43% Leap in Annual Recurring Revenue as Demand Rises for Intelligent Operations Platform

Checkit plc has announced a 43% increase in annual recurring revenue (ARR) in its latest set of unaudited preliminary results. ARR rose to £8.2m for the financial year ending 31 January 2022, compared with £5.8m in the previous period.

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“Checkit is well positioned to capitalise on this growth opportunity due its unrivalled end-to-end solution; considerable domain knowledge in key industries such as healthcare, life sciences, retail and hospitality; and its status as a mature, listed, and regulated entity.”

The company has welcomed the results as a clear indication of growing demand for its end-to-end intelligent operations platform, which combines sensors, workflow management, powerful AI and data analytics to provide customers with a complete view of their people, assets, and buildings.

The results also underline to company’s transition towards a pure Software-as-a-Service (SaaS) business model.

Chief Executive Officer Kit Kyte was appointed in 2021 and has led this transformation, placing a new focus on the company’s go-to-market strategy and value-driven sales approach.

The past year has also seen Checkit expand its US presence with the acquisition of Tutela Monitoring Systems LLC, which provides the company with a US base in Florida.

Kit Kyte, CEO, said: “Checkit has realised a strong set of financial results in FY22, delivering a second consecutive year of high-quality recurring revenue growth by continuing to focus on attracting new customers, while expanding our footprint and implementing price initiatives with existing customers.”

FY22 Highlights

  • Pipeline at year end £15.4m
  • Annual recurring revenue (“ARR”) run rate at year end of £8.2m (+43%) ahead of market expectations (FY21: £5.8m normalised*)
  • Annualised sales bookings at year end of £3.5m
  • Recurring revenue (+31% to £6.8m) supported by new customer wins and expansion within existing accounts (FY21: £5.2m)
  • Total Group revenue from continuing operations £13.3m (-7%) (FY21: £14.4m normalised)*
  • Non-recurring revenue declined by 29% primarily driven by the planned transition of BEMS activity to a SaaS (Software as a Service) offering as outlined at the time of the fundraise
  • Operating loss before non-recurring or special items** £4.7m (FY21: loss of £3.1m) reflecting the ongoing investment to accelerate Checkit’s strategic plan
  • Operating loss of £7.1m (FY21: loss of £5.3m)
  • Cash at year end of £24.2m (FY21: £11.5m) following receipt of proceeds from the placing, which raised £21m (gross) to accelerate the Group’s growth strategy
  • Appointment of Kit Kyte, Chief Executive Officer, bringing a renewed focus on the go-to-market strategy, value-driven sales, and leading the transition of Checkit towards a pure SaaS business.
  • Strengthened US presence with the acquisition of Tutela Monitoring Systems LLC (“Tutela”), establishing a US base in Florida.

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Kit Kyte said: “We believe that there is a compelling need to digitise the deskless workforce to enable organisations to track and optimise performance; reduce costs and wastage; and increase efficiency, especially against a backdrop of rising labour costs and supply chain challenges, which are significantly impacting service delivery.

“Checkit is well positioned to capitalise on this growth opportunity due its unrivalled end-to-end solution; considerable domain knowledge in key industries such as healthcare, life sciences, retail and hospitality; and its status as a mature, listed, and regulated entity.”

He added: “Trading since the start of the new financial year has progressed well, in line with the Board’s expectations. We have secured new customers, expanded within existing accounts, and continued to progress our investment plans to support our growth strategy.”

* Normalised revenue refers to revenue that would have been included in the Group’s financial results had Tutela LLC, which was acquired on 4 February 2021, been owned by the Group throughout both periods.

** Non-recurring or special items include such items as restructuring, acquisition and fundraising costs and amortisation of acquired intangibles and other non‑recurring items incurred outside the normal course of business.

The Group’s management team will host a live webinar which will include an opportunity for questions at 12:00 (BST) on 28 April 2022.

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