Checkit — Three-year contract with Biomat in the US

Checkit (AIM: CKT)

Last close As at 27/03/2024

GBP0.22

−0.50 (−2.27%)

Market capitalisation

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Research: TMT

Checkit — Three-year contract with Biomat in the US

Checkit has signed a three-year subscription contract with Biomat USA, a subsidiary of plasma and infusion medicines specialist Grifols, to provide its temperature-monitoring technology to plasma centres across the US. The vast majority of the £2.8m minimum contract value relates to upsell or new business, with further opportunities being discussed to support Grifols in Europe. This contract demonstrates Checkit’s land and expand strategy and provides support to our forecast of 56% ARR growth in FY23.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

Checkit

Three-year contract with Biomat in the US

Contract renewal and upsell

Software & comp services

1 February 2022

Price

43.5p

Market cap

£47m

Net cash (£m) at end H122

8.5

Shares in issue

108m

Free float

56%

Code

CKT

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

Business description

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

Analyst

Katherine Thompson

+44 (0)20 3077 5730

Checkit is a research client of Edison Investment Research Limited

Checkit has signed a three-year subscription contract with Biomat USA, a subsidiary of plasma and infusion medicines specialist Grifols, to provide its temperature-monitoring technology to plasma centres across the US. The vast majority of the £2.8m minimum contract value relates to upsell or new business, with further opportunities being discussed to support Grifols in Europe. This contract demonstrates Checkit’s land and expand strategy and provides support to our forecast of 56% ARR growth in FY23.

Year end

Revenue (£m)

ARR* (£m)

PBT**
(£m)

EPS**
(p)

DPS
(p)

EV/sales
(x)

01/20

9.8

3.9

(6.4)

(4.0)

0.0

2.1

01/21

13.2

5.7

(3.1)

(5.2)

0.0

1.5

01/22e

13.2

7.6

(4.5)

(6.6)

0.0

1.5

01/23e

11.2

12.0

(8.8)

(8.1)

0.0

1.8

Note: *ARR, annualised recurring revenue; **PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Checkit has signed a three-year agreement with Biomat USA, a subsidiary of Grifols, to provide temperature monitoring services to more than 300 sites across five subsidiaries in the US. Grifols is a leader in the production of plasma-derived medicine and transfusion medicines and operates more than 350 plasma centres around the world. The contract is worth a minimum of £2.8m spread evenly over the three years. Of this, 12% represents a renewal of existing business with Grifols and the remainder is upsell/new business. The agreement establishes Checkit as Grifol’s partner of choice for intelligent operations technology in the US and Checkit is in advanced discussions with the company to cover key operations in Europe. Grifols plans to build 20 plasma centres in Egypt and Checkit recently signed a separate three-year contract to provide its technology to the first 10 of these.

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