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.
17 February 2022
Checkit plc
("Checkit" or the "Group")
Trading update
Checkit plc (AIM: CKT), the intelligent operations platform for the deskless worker, provides an unaudited trading update for the year ended 31 January 2022 ("FY22").
| (£'m) Reported | Twelve months to | |||
| | 31 January 2022 Actual | 31 January 2021 Actual | 31 January 2021 Normalised | % Change Normalised |
| ARR | 8.2 | 5.7 | 5.8 | +43% |
| | | | | |
| Revenue | | | | |
| Recurring | 6.8 | 5.1 | 5.2 | +31% |
| Non-recurring | 6.5 | 8.1 | 9.2 | (29) % |
| Total Group | 13.3 | 13.2 | 14.4 | (7) % |
| | | | | |
NOTES
1. Annual Recurring Revenue ("ARR") is defined as the annual value of recurring revenue relating to contracts that have been installed and are therefore invoiceable. Future revenue relating to bookings taken, but which have not been installed, is excluded from reported ARR.
2. Prior year revenue has been normalised to illustrate revenue that would have been included in the Group's financial results had Tutela LLC (acquired 4 February 2021) been fully owned by the Group throughout both periods.
The better than expected ARR performance was driven by strong H2 sales bookings.
The Group delivered bookings growth of 95% in the period, underpinning the Board's confidence in delivering strong ARR growth in FY23 and beyond.
Recurring revenue includes like-for-like US recurring revenue growth of 82%, driven by the bookings performance noted above. The lag in Group recurring revenue percentage growth, compared to the growth rate of ARR reflects the acceleration in ARR of contracts signed during the second half of the financial year.
Recurring revenue accounted for 51% of total revenue for the full year. In the last three months of the year, recurring revenue contributed 75% of total revenue as Checkit continued its transformation into a pure software as a service ("SaaS") business.
Non-recurring revenue declined in line with management's expectations as planned. The Group is now wholly focused on delivering recurring revenue from its technology solutions (including those relating to smart buildings), rather than traditional BEMS one-off projects with minimal software input. In the Group's FY22 results, Checkit will cease reporting the BEMS business as a separate segment and instead will segment recurring and non-recurring revenue.
Cash and Outlook
Cash at 31 January 2022 was £24.2m (31 January 2021: £11.5m), reflecting the recent oversubscribed placing, when the Group raised net proceeds of approximately £20.0m. As a result, Checkit is strongly positioned to accelerate its programme of investment, with the intention of achieving further ARR growth in FY23.
The Board remains confident in the significant opportunities presented by the growing deskless worker industry and a further update will be provided as part of the preliminary results announcement expected to be issued on 28 April 2022.
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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