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Currency in GBP
Last close As at 30/03/2023
GBP0.28
▲ −2.00 (−6.67%)
Market capitalisation
GBP32m
Research: TMT
Checkit has expanded its existing relationship with BP by rolling out its intelligent operations platform for workflow management and automated monitoring to 441 forecourts in Australia and New Zealand. This is Checkit’s largest ever deal and its extended engagement with a flagship customer endorses the company’s value proposition and strategy. Installations are expected to begin in the early part of 2022 and will double the size of Checkit’s footprint with BP in terms of total number of locations and contracted annual recurring revenues (ARR). Prior to this agreement, the platform was used by more than 400 BP-owned forecourts across the UK, Netherlands and Luxembourg. Discussions are ongoing regarding rolling this out further, where there is significant scope for expansion underpinned by the c 18,700 BP forecourts worldwide.
Checkit |
BP contract expands relationship on a global scale |
Contract update |
Software & comp services |
28 October 2021 |
Share price performance
Business description
Analysts
Checkit is a research client of Edison Investment Research Limited |
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Checkit has expanded its existing relationship with BP by rolling out its intelligent operations platform for workflow management and automated monitoring to 441 forecourts in Australia and New Zealand. This is Checkit’s largest ever deal and its extended engagement with a flagship customer endorses the company’s value proposition and strategy. Installations are expected to begin in the early part of 2022 and will double the size of Checkit's footprint with BP in terms of total number of locations and contracted annual recurring revenues (ARR). Prior to this agreement, the platform was used by more than 400 BP-owned forecourts across the UK, Netherlands and Luxembourg. Discussions are ongoing regarding rolling this out further, where there is significant scope for expansion underpinned by the c 18,700 BP forecourts worldwide.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
EV/Sales |
01/20 |
9.8 |
(6.4) |
(4.0) |
0.0 |
N/A |
2.0 |
01/21 |
13.2 |
(3.1) |
(5.2) |
0.0 |
N/A |
1.5 |
01/22e |
15.2 |
(4.5) |
(7.2) |
0.0 |
N/A |
1.3 |
01/23e |
17.8 |
(2.7) |
(4.3) |
0.0 |
N/A |
1.1 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Checkit’s record new deal with BP endorses the effectiveness of its intelligent operations management software among large global companies, which should continue to drive management’s aim of increasing subscription-based revenues’ share of total revenue. Management has not disclosed the value of the deal, but we understand that revenues generated should scale largely in line with the number of forecourts covered. Due to the timing of the deal in its financial year, it should not have any material impact on FY22 revenues, but we believe it will make a material contribution to ARR from FY23 onwards. The pace of growth will depend on how many additional BT forecourts it can roll out its software to.
The contract also illustrates the ongoing success of management’s ‘land and expand’ strategy, emphasised by the speed at which the number of BP forecourts have adopted its intelligent operations platform. The replication of this strategy will provide a platform for rapid scalable growth, in our view.
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Research: Financials
Bancassurance advisory and service platform JDC Group is quickly adding large new clients to its insurtech platform. The platform, which was originally developed for its independent financial advisory (IFA) activities, has attracted several clients ranging from Lufthansa and Volkswagen to large German insurers like Provinzial and most recently VKB. According to management, the pipeline of new contracts looks promising. As well as the platform business, JDC operates a smaller advisory activity (FINUM). Based on consensus EV/sales and EV/EBITDA in 2021/22e, the valuation does not seem demanding compared to other platform peers.
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