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Checkit

LN: CKT

Market Cap£39m

Last Close 36p

Checkit optimises the performance of people, processes and physical assets with connected digital solutions. The company is headquartered in Cambridge, UK, and has operations centres in Fleet, UK, and Tampa, US.

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Investment summary

Checkit made good progress during FY22 with its strategy to transition to a pure SaaS business. Annualised recurring revenue grew 44% y-o-y, helped by new customer wins and expansion of existing contracts, with recurring revenue reaching 75% of total revenue in Q422 compared to 51% for the full year. Management expects to meet market expectations for FY23; our FY23 forecasts are substantially unchanged and we introduce FY24 forecasts that factor in ARR growth of 32%.

Y/E Jan
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2021A 13.2 (2.5) (3.1) (5.2) N/A N/A
2022A 13.3 (4.2) (4.7) (7.0) N/A N/A
2023E 11.2 (7.8) (8.8) (8.1) N/A N/A
2024E 14.0 (5.1) (6.6) (6.1) N/A N/A
Industry outlook

With its workflow management software, Checkit is focused on connecting and empowering deskless mobile workers who are not able to use desktop software in their day-to-day working environment. Only a small proportion of the current enterprise software market is designed for this group of workers. Checkit’s sweet spot is supporting workers who perform a combination of routine tasks and infrequent but important tasks where the volume and variety of tasks is such that it is difficult to build a targeted application.

Last updated on 20/05/2022
Content on Checkit
Checkit – Growth strategy on track
TMT | research Update | 28 April 2022
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Checkit – FY22 ARR growth of 44%
TMT | research Update | 17 February 2022
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Checkit – Three-year contract with Biomat in the US
TMT | research Flash note | 1 February 2022
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Share price graph
Balance sheet
Forecast net cash (£m) 15
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (7.7) (22.6) (41.0)
Relative* (4.3) (20.5) (42.2)
52-week high/low 66.0p/35.5p
*% relative to local index
Key management
Keith Daley Chairman
Kit Kyte CEO
Greg Price CFO