Checkit Share Discussion Threads

[matt123d] 01/11/2019 10:44

Why so much stock on offer at these levels

[jaf111] 01/11/2019 10:33

nice trade here surely.....buy @ 58p, tender @ 65p......minimum two-thirds accepted....

I'm in!!

[johndoe23] 31/10/2019 10:48

Very nice!

[mirabeau] 31/10/2019 10:15

RNS - contract win

[sharw] 30/10/2019 17:04

There is normally an RNS when circulars are sent out.

[blackfinance] 30/10/2019 15:23

Nothing from Hargreaves-Lansdown yet, they are usually pretty quick off the mark, so I assume documents have not been made available yet?

[johndoe23] 29/10/2019 13:03

Anyone received circular yet regarding tender?

[gersemi] 23/10/2019 12:34

with thanks to ST at the IC -

Checkit’s global sales opportunity

23 Oct-2019


Shareholders in technology group Checkit (CKT:55p), formerly known as Elektron Technology, are on course for bumper £81m cash return in November following the recently completed disposal of Bulgin, a world-class designer and maker of hermetically-sealed (air and watertight), fail-safe circular connectors. A circular will be sent to shareholders in the coming days that will offer them the chance to tender their shares at 65p on the basis of two shares repurchased for every three held. That’s a 48 per cent premium to the 44p entry point in my November Alpha Report.

Checkit will retain net cash of £14m to develop its business, a sum that will be augmented when its non-core Elektron Eye Technology (EET) business, a developer of portable analysers that are used to detect age-related macular degeneration, is sold off. That unit has just reported operating profit of £100,000 on revenue of £1.2m in the half year to 31 July 2019, so it could perhaps fetch £1.8m in the current market.

Based on 62m shares in issue post the tender offer, Checkit’s pro-forma market capitalisation of £21.7m (using a share price of 35p) will be two-thirds backed by cash (22p a share post tender). Also, Checkit acquired Fleet-based Next Control Systems (NCS), a leader in high-end service-based temperature monitoring for healthcare and life sciences within the UK, and data-related building energy management system services, for a net consideration of £8.8m (14p a share) in May 2019, representing 6.6 times its annual cash profit.

This means that the value in NCS, which has now been renamed Checkit UK, and retained cash, back the company's market capitalisation in full, implying shareholders are getting a free ride on Checkit’s proprietary work management ‘software as a service’ (Saas) business that has been designed to replace paper-based systems with a centralised, interactive cloud-based way of managing the multitude of tasks that staff have to carry out on a daily basis. Analyst Paul Hill at Equity Development estimates that more than £15m (24p a share post tender) has been invested in developing the system, thus creating “a wide competitive moat against UK rivals such as Crimson Tide (TIDE), Trailsuite and Kelsius”.

Admittedly, Checkit is lossmaking, but it is growing quickly and is targeting a near £6bn market for work management software, remote wireless sensing and remote building energy management in both the UK and the US. The client list already includes a roll call of blue chips including John Lewis, Center Parcs, BP, British Land and the NHS, highlighting how the company’s exciting suite of mobile apps, wireless sensors and data analytics can be deployed across multiple sectors including retail, healthcare, leisure and hotels both to monitor and enhance the operational performance of clients’ businesses.

Moreover, the directors are expanding their geographic reach. Chairman Keith Daley revealed during our results call this morning that the company “hopes to sign a multi-branch contract with a large European food retailing group shortly”. The focus is increasingly on the largest national and multinational customers. They are exploiting cross-selling opportunities with Checkit UK’s client base, too.

True, Checkit is lossmaking and is expected to rack up cumulative cash losses of £6m in the three financial years to 31 January 2022, by which time annual revenue (excluding EET) should have ratcheted up from £11.6m to £20.5m, according to Mr Hill. But the point is that this is a business that should be able to maintain that underlying sales growth rate of 20 per cent a year and is highly operationally geared, so once it turns cash profitable (Equity Development has a £1.3m cash profit forecast in the 2022/23 financial year on revenue of £25m), it will become increasingly profitable thereafter.

The shares look underpriced to me so, although I would recommend tendering two-thirds of your holdings to bank a hefty profit on part of your holding, thus giving yourselves a free ride on the balance, I would certainly advise holding onto the rump. Tender shares.Shareholders in technology group Checkit (CKT:55p), formerly known as Elektron Technology, are on course for bumper £81m cash return in November following the recently completed disposal of Bulgin, a world-class designer and maker of hermetically-sealed (air and watertight), fail-safe circular connectors. A circular will be sent to shareholders in the coming days that will offer them the chance to tender their shares at 65p on the basis of two shares repurchased for every three held. That’s a 48 per cent premium to the 44p entry point in my November Alpha Report.

Checkit will retain net cash of £14m to develop its business, a sum that will be augmented when its non-core Elektron Eye Technology (EET) business, a developer of portable analysers that are used to detect age-related macular degeneration, is sold off. That unit has just reported operating profit of £100,000 on revenue of £1.2m in the half year to 31 July 2019, so it could perhaps fetch £1.8m in the current market.

Based on 62m shares in issue post the tender offer, Checkit’s pro-forma market capitalisation of £21.7m (using a share price of 35p) will be two-thirds backed by cash (22p a share post tender). Also, Checkit acquired Fleet-based Next Control Systems (NCS), a leader in high-end service-based temperature monitoring for healthcare and life sciences within the UK, and data-related building energy management system services, for a net consideration of £8.8m (14p a share) in May 2019, representing 6.6 times its annual cash profit.

This means that the value in NCS, which has now been renamed Checkit UK, and retained cash, back the company's market capitalisation in full, implying shareholders are getting a free ride on Checkit’s proprietary work management ‘software as a service’ (Saas) business that has been designed to replace paper-based systems with a centralised, interactive cloud-based way of managing the multitude of tasks that staff have to carry out on a daily basis. Analyst Paul Hill at Equity Development estimates that more than £15m (24p a share post tender) has been invested in developing the system, thus creating “a wide competitive moat against UK rivals such as Crimson Tide (TIDE), Trailsuite and Kelsius”.

Admittedly, Checkit is lossmaking, but it is growing quickly and is targeting a near £6bn market for work management software, remote wireless sensing and remote building energy management in both the UK and the US. The client list already includes a roll call of blue chips including John Lewis, Center Parcs, BP, British Land and the NHS, highlighting how the company’s exciting suite of mobile apps, wireless sensors and data analytics can be deployed across multiple sectors including retail, healthcare, leisure and hotels both to monitor and enhance the operational performance of clients’ businesses.

Moreover, the directors are expanding their geographic reach. Chairman Keith Daley revealed during our results call this morning that the company “hopes to sign a multi-branch contract with a large European food retailing group shortly”. The focus is increasingly on the largest national and multinational customers. They are exploiting cross-selling opportunities with Checkit UK’s client base, too.

True, Checkit is lossmaking and is expected to rack up cumulative cash losses of £6m in the three financial years to 31 January 2022, by which time annual revenue (excluding EET) should have ratcheted up from £11.6m to £20.5m, according to Mr Hill. But the point is that this is a business that should be able to maintain that underlying sales growth rate of 20 per cent a year and is highly operationally geared, so once it turns cash profitable (Equity Development has a £1.3m cash profit forecast in the 2022/23 financial year on revenue of £25m), it will become increasingly profitable thereafter.

The shares look underpriced to me so, although I would recommend tendering two-thirds of your holdings to bank a hefty profit on part of your holding, thus giving yourselves a free ride on the balance, I would certainly advise holding onto the rump. Tender shares.

end

[equitydev] 22/10/2019 06:57

New research out following today's positive H1'20 results.

hxxps://www.equitydevelopment.co.uk/company/?company=Checkit+plc&c=3QDO

[castleford tiger] 16/10/2019 19:31

Not heard anything from my broker

[johndoe23] 15/10/2019 11:47

I believe it's the 22nd ..

[johnthespacer] 15/10/2019 08:34

Anyone know when the tender offer takes place?

From memory was the 24th of October mentioned?

[brummy_git] 04/10/2019 06:57

Checkit (formerly Elektron Technology) operates a SaaS platform that digitises and vastly improves the running of routine tasks/workflows, particularly with regards to efficiency, quality, standardisation and regulatory compliance. In May’19, the group acquired Next Control Systems for £8.8m, which added scale to the IoT (Internet of Things) element of the product suite.

The company is aiming to become a global leader in real-time operations management software.

[hectorp] 31/12/2005 14:00

They are to get CBE'S not OBE'S, a CBE is a high award ( Commander of the British Empire)
not related to 'Umpire' either!

[abix47] 31/12/2005 13:55

lol! You fool.

That was two years ago and they all got awards.

Does your numptiness have no bounds?

[hectorp] 31/12/2005 13:29

I beleive the entire test team has been given a CBE each ! How is that for biased favouritism. Thank you, Duke of Edinburgh.
At lest they have not been placed in the higher ranks of national appreciation, with Sir Tom Jones!
At least they can share the value of comfort with their co-awardees: Robbie Coltraine and Brucey Forsyth!
- Will Beckham be knighted next New Year for 'services to Football' after England fail to get past the quarter finals? You can just see a tragic event in the making in Summer 06.

[abix47] 22/9/2005 23:05

Doc

OK but I'm hoping one of them will play better next year.

I've been a member at two clubs for a couple of years now. A small (but very nice) village club where I have assisted with ground work on a voluntary basis for several years and a large Premier League club for whom I play Sunday League and Wednesday Friendlies.

The large club have asked me to replace their retiring groundsman (the fools!) and I have accepted. I'm off on a groundsman course next week.

It's quite a responsibility for peanut wages but gets me away from this screen and fits in fine with my other activities.

I'll let you know how I get on and bore the pants off everyone on here talking about my favorite subject; grass.

lol!