A rather interesting irony. Kyte chips in his options priced at 40ish pence, a strike price 10-15% lower than the 46p for the £20+m he hoodwinked shareholders into digging in their pockets for; only to have his options repriced at 20p. You can’t make this up - reward for failure. Utter failure. |
Didn't realise that you were related. |
Sorry Trev, you’ll have to enlighten us as to who the myriad of new customer are. Only a 60% destruction of shareholder value over the last couple of years, but you fill your boots son. |
I just watched the recording of the IMC presentation. Rather better than I was expecting, to be honest. I may not have enough of these.
Not sure what porous is on about. They have a clearly stated land and expand strategy and it's much more than just Sodexo and Compass. One wonders why someone would be so negative on a £26m company close to its lows since the company was listed in its current separate form. |
The issue is that when one dives a little deeper the wheels come off. Sodexo and Compass have been talked about for a decade, existing customers are being “convertedR21; from annual contracts to SaaS. All smoke and mirrors. Winning new customers is the only leading indicator here and it amounts to a handful of magic beans relative to the S&M spend and the development spend. The words, as ever, are great; the delivery is non-existent relative to the investment. If one assumes 30 new customers this year then it translate to an acquisition cost of £10k per customer. |
Co not yet in control of its destiny (i.e. still cashflow negative). If or when it gets to that point the shares will lift-off.
The relative lack of new customers of late is of relatively minor concern to me, as it is only to be expected that sales timelines get extended when the economy is sluggish.
The fact that they are still growing revenues at attractive rates with existing customers (where there is still substantial untapped potential) speaks to the quality of the product, the inherent attractions of the business model and the "land and expand" sales strategy.
I am happy to hold and wait at the current valuation. |
Yes, now a completely different business. Interesting write-up by ST on p30 of the latest IC. EV trading at only 1x ARR made me blink!! |
I believe its only reasonable to look at this situation since the new CEO and Management team came in during 2021. Before that Checkit and Elektron Technology (as it was) was a completely different business. Due to the history, the market will take time to be convinced that the story is very different now so we should be patient. I will give them until end of 2025 |
It’s taken 10 years to acquire 500 customers. Only 30% of growth has come from new customer acquisitions; ie £300k. This was stated by the CEO on the call. The balance has come from inflationary price increases. So yes, the growth is very poor. £3m+ per year in S&M costs plus endless capitalised development to acquire £300k of new business… |
I thought the presentation on IMC was fine. They have 500 clients and the land and expand approach seems to be working. Compass is a good example where they started with one contract and already have 5 as confidence in the product grows.They clearly see the US being a major opportunity. |
Dear All
I dont see how these results can be described as poor. ARR growing at 17% and US ARR now at 26% and growing at almost 30%). The ARR growth rate is similar to last year which was only the second year of moving to a SaSS model so its reasonable to expect a small decline in growth but its still solid numbers. Most importatatny, they are delivering what they said they would do and are on track for profitability sometime in year 2026. I dont see how they will run out of cash as there is 9.0m in the bank and LEBITA will probably be 2m in 2025 and maybe 1m in 2026 so there should be sufficient cash left for investing in the business or a bolt on smaller M&A to help to accelerate to profitability. We will hear about this more in April. |
Agreed...poor results imo...
...to hold up the share price, with it's loss making, a much higher growth % was needed imo |
Hmm, it is losing less money. The free cash is falling but it is going to run out in 18 months if it continued at this rate.
But the rise in sales may save this slow motion crash.
Maybe this is pessimistic , but I do remember when this company used to make money. |
I like to see a share price rise on the eve of TU.
Not holding my breath mind... |
Trading update on Thursday at 2pmShould give details of advance on strong H1 sales and upbeat expectations. |
What do people think fair value is here ? |
Signs of life here |
Just checkit the market - 19.88p bid, 20.88 offered. I bought some. |
Run of sells this am taken the price to 23.5p ; that is rather gloomy. The race to true profitability continues. Let us hope the cash pile lasts. |
Of paramount importance will be our ability to execute and scale the growth opportunity ahead of us whilst targeting breakeven in FY26.That's a long way away and perfect execution is needed £18m - £20m ARR break even |
"There is an impressive amount of management speak in the statement" LOL.
Share price reacting as one would expect given the increased likelihood that the cash won't run out before they get to cashflow breakeven.
Personally I think the product will be a winner - just not sure about the valuation. I have a small holding with a net entry price of about 50p (from the free money era!) Kicking myself I didn't average, but hey ho. |
Interims better than expected I think; the loss is reduced and the cash burn is slowing down faster than last update predicted. Maybe it will turn into a winner after all.
There is an impressive amount of management speak in the statement:
Kit Kyte, Chief Executive Officer, commented:
"Checkit is on an accelerated track to profitability. We're scaling growth through our land and expand model, while prioritising operational efficiency and cost reduction. Despite the challenges in the wider economy, our diverse customer base and a product suite that is built to deliver operational efficiency uniquely positions us for market capture." |
TU thursday. |
Looks like a bit of a share price recovery; maybe the worst is behind CKT after all.... |
Register for streaming realtime charts, analysis tools, and prices.
Hot Features
Premium
