I'm not sure I want quarterly updates but was pleasantly surprised all the same. No update notes and shares marked down. Too good to miss so added which is yet to be reported |
Testing the intra-day highs of 2019. |
 A business primed for the ‘new normal’
Operating losses slashed.
Annual recurring revenue (ARR) increases 46 per cent.
Small acquisition and additional hire boosts US sales drive.
Technology group Checkit (CKT:63p) has reduced full-year adjusted operating losses by more than half to £3.1m on 35 per cent higher revenue of £13.2m, an eye-catching 15 per cent outperformance of previous guidance (‘Technology stocks for the new normal’, 26 October 2020). Net cash of £11.5m was £1m higher, too.
Checkit’s workflow management software digitises the scheduling and reporting of operational workflows with a view to automating manual processes, increasing efficiency and delivering greater management insight. Despite Covid-19 headwinds impacting some customers, annual recurring revenue (ARR) increased by 46 per cent to £5.7m, driven by new customer wins in the NHS and food retail sector, as well as contract renewals on enhanced terms.
The accelerated pace of digital transformation brought on by the pandemic is clearly validating Checkit's value proposition in the new ‘normal’ as companies look to manage deskless workforces through data-driven remote monitoring, and automated systems surveillance. There are tangible cost benefits, too, for corporate customers in Checkit’s five industry verticals: healthcare, food and retail, facilities management, pharmaceutical and fast-food restaurants.
The acquisition of US-based Tutela Monitoring Systems and hiring of an experienced Software-as-a-Service (SaaS) executive (previously at Oracle NetSuite) to drive revenue generation across enterprise food and retail, and healthcare markets in the Americas is another positive.
Checkit’s share price has risen by a third since my last update, and the re-rating has further to run to my new target of 75p. That’s because Checkit could hit the inflexion point of operating profitability sooner than I had envisaged, a possibility is not reflected in an enterprise valuation of two times annual revenue, a 70 per cent discount to the UK software sector average. Buy. |
Share price had a nice recovery during and after the results webinar which was very well attended. A recording of the webinar can be found here: hxxps://youtu.be/uS5nAMrdVJU
A write up of the webinar can be found here: hxxps://www.yellowstoneadvisory.com/post/checkit |
Burned £3m in cash this year, loss is down, but it seems the market does not share Mr Daley's enthusiasm this morning so far.
Still , share price has held most of yesterday's gains. |
#CKT FY - inline with higher numbers guided in Feb.
Chairs statement particularly bullish on future prospects. Current year started strongly
Webinar today at 1pm. Hear the mgmt team and ask your questions.
hxxps://us02web.zoom.us/webinar/register/2816183450859/WN_vu9Av2ekRTyxGJ9nfxHErw |
XXX , it was the early days of the Checkit roll out , they were fitting remote monitoring devices to a series of fridges that were being temperature controlled and monitored via the building wifi system. There was some hard wiring involved , I can't remember how much, it was certainly being fitted by their technicians. I recall there was a problem with where exactly to place the sensor as there seemed a lot of variability when the doors were opened.
Glad I added a week ago . Is today's rise in anticipation of tomorrow's prelims? Hope so. |
Once again, point to note - there is only 19.2m shares in "Free Float" so any strong trades to the buy side will only propel the share price upwards. |
Ive just seen this spring into life, any thoughts other that results next Thurs |
Interested to hear what your experience was and where this product fits in. Does it have any IP attached? If not it appears to be sensor + software, which I would have thought would be copied and commodotised quite promptly, but I dont know anything about the area and the website doesnt help me in that. |
Having had some experience with an earlier version of Checkit , I think this might be quite a significant advance so just bought some more at 52.4p
Product update announcement
Technology launch enabling low cost global expansion
Checkit plc (AIM: CKT), the intelligent operations management platform for deskless workforces, announces a new self-installation feature for automated temperature monitoring in the food industry. This technology launch is expected to provide a significant boost to the Company's competitive position and remove a barrier to its global expansion plans since it enables customers to set up their own sensor networks in minutes without the need for specialist field engineers. Engineer installation will continue to be available worldwide as an optional extra via non-specialist third parties.
The Company expects that the technology will be of significant interest to large customers involved in sourcing, processing, transporting, storing, retailing and serving food and complements Checkit's workflow management capabilities. It is supported by a 24/7 helpline.
The development has been accelerated as a result of the ongoing restrictions in response to the Covid-19 pandemic. Checkit has combined plug-and-play devices with step-by-step wizards to simplify installation.
The self-installation feature is now being used in Australia, New Zealand, the Netherlands, Luxemburg and Poland. To ensure a smooth customer adoption experience, Checkit is available in multiple languages.
Keith Daley, Executive Chair, commented: "As we continue to focus on enterprise-wide intelligent operations management, we will continue to seek to remove any barriers to the roll-out of our technology into customers' operations worldwide. This is the first of several improvements we shall be making this year. We believe that enterprise operations management should offer the same consumer experience we've all grown to expect in our daily lives - something which we believe has been missing from the market until now." |
Hi Tradertrev, Yellowstone are organising the webinar on behalf of Checkit. The date for the FY results was given in the trading update in Feb. |
Where are you seeing that YA? No RNS posted that I can see and nothing on the co website. |
Checkit Plc announce FY results on 29 April and there is a webinar for investor at 1pm that day with Chair Keith Daley and CFO Aysla Muir. Register
hxxps://us02web.zoom.us/webinar/register/2816183450859/WN_vu9Av2ekRTyxGJ9nfxHErw |
Small increase to Graham Edwards' holding? |
I've just made my first investment here. Looks an interesting company with plenty of scope for growth, especially in USA. |
Bought a few more at 50p today. This has had quite a pull back. |
Excellent TU and the beauty for me is there is only 19.2m shares in "Free Float"
Any strong buying will send the share price into orbit. |
We like that TU!
Muddling through Covid nicely. The rewriting of the assets is surprisingly in the desired direction . |
Excellent trading update today:
"The business performed above the Board's expectations during Q4.
The Board believes that the Group's operating result for FY21 will be around 15% better than current market estimates (prior to any adjustment related to prior year re-statement).
Checkit Connect recurring revenues for Q4 grew 51% compared to the same period in the prior year, and closed FY21 at £5.1m (+33% compared to prior year).
Annual recurring revenue (ARR) grew by 46% to close at £5.7m (FY20 £3.9m), reflecting the increase in annualised contracted Revenues achieved during the year.
...
Outlook
Following the announcement on 4 February 2021 regarding the acquisition of Tutela LLC and recruitment of two key senior hires, the Board is accelerating its growth plans in both Europe and in the US. This includes increasing investment in sales and marketing in FY22 designed to maximise subscriber volumes on the back of digital transformation trends which the Board believes will serve to accelerate ARR growth." |
I was wondering whether Checkit have any exposure to the Covid vaccine cold-chain requirements. Pharmacy cold chain monitoring is certainly one of the applications.
Can't see any news on the company website about any contract. Mind you judging by the way most of the covid contracts seem to be brokered, there won't be an RNS just a mumble at the next Public Accounts Committee sitting about expediency! |
Dipped a toe in here today - wasn't easy |
Checkit PLC Contract with John Lewis
19/10/2020 7:00
Earlier in the decade this would have been an undoubted good news RNS , but not sure that it is still the same now. Let us hope that John Lewis has a bright future! |
Tipped in IC........DYOR |
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