Elektron Technology PLC Checkit passes £1 million annual recurring revenue (3424K)

TIDMEKT

RNS Number : 3424K

Elektron Technology PLC

10 April 2018

10 April 2018

Elektron Technology PLC

Checkit passes GBP1 million Annual Recurring Revenue milestone

Elektron Technology plc (AIM: EKT, "Elektron", "Group") announces a significant milestone for Checkit Limited ("Checkit"), its subsidiary business focused on providing real-time operations management and monitoring technology.

Contracted annual recurring revenue ("ARR") has now passed GBP1 million, which is ahead of management expectations. This compares to over GBP0.75 million per annum of ARR for Checkit as at 31 January 2018, as previously reported.

ARR relates to systems already installed and agreed to be installed and is therefore a leading indicator of committed future turnover. The Checkit service is based on a software as a service ("SaaS") model with subscription income being recognised monthly in the financial accounts. In the first month of a contract only one month's income will be recognised and therefore it takes 12 months until ARR from each contract is fully reflected in Checkit annual turnover, which also includes one off services such as installation, training and consultancy. In the years ending 31 January 2017 and 2018 Checkit sales were GBP0.3 million (audited) and GBP0.5 million (unaudited) respectively.

Checkit continues to build its customer base among large, medium and small sized businesses in the UK and plans international expansion later this year. February 2018 saw the launch of Checkit's Operational Insights business intelligence tool, which further enhances its offering.

John Wilson, Chief Executive Officer of Elektron, said:

"Today's announcement is an important milestone for Checkit and provides further validation of the significant investment that the Group has made in the Checkit business. Checkit has moved from start-up to scale-up phase and the Board remains confident in the overall long term growth prospects of the business. "

Enquiries:

 
 Elektron Technology plc           [phone] 
--------------------------------  ---------------------------- 
 John Wilson (CEO)                 www.elektron-technology.com 
--------------------------------  ---------------------------- 
 Andy Weatherstone (CFO and 
  Company Secretary) 
--------------------------------  ---------------------------- 
 
 N+1 Singer (Nominated Adviser 
  & Broker)                        [phone] 
--------------------------------  ---------------------------- 
 Shaun Dobson / Jen Boorer 
  (Corporate Finance) 
--------------------------------  ---------------------------- 
 Michael Taylor (Corporate 
  Broking) 
--------------------------------  ---------------------------- 
 
 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Notes to Editors

Elektron conceives designs and markets innovative products and services for businesses that connect, monitor and control. We have a multi skilled team of engineers, software and product line specialists based in Cambridge focused on the opportunities created by global trends in the following areas:

- Demand for ubiquitous power and data: www.bulgin.com

- Real-time operations management using Internet of Things (IoT) technology: www.checkit.net

- Screening for the effects of ageing on sight: www.elektron-eye-technology.com

This information is provided by RNS

The company news service from the London Stock Exchange

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April 10, 2018 02:00 ET (06:00 GMT)