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, with the ultimate aim of becoming a global powerhouse in real time operations management. Whilst simultaneously transitioning towards a pure 100% SaaS business across many sectors including Retail, Hospitality, Healthcare, Real Estate Management and Manufacturing.

There are 190 FTEs, and the firm is headquartered in Cambridge, UK with its Operations Centre in Fleet, and a Sales and Service office in California, US.

12 Aug 2020

Trading update on 6 months to 31 July

In a Trading Update for the six months to 31 July 2020 Checkit reports that, on a normalised basis, recurring revenue rose 23.4% YoY to £1.9m, whilst non-recurring revenue, on the same basis declined by 6.8% YoY to £4.3m. Normalised data is based on ownership of Checkit UK for the whole period - it was acquired on 14 May 2019.

Facing the circumstances occasioned by the COVID-19 pandemic the Group continues to base planning on recurring revenues which have remained resilient, in contrast to a contraction in installation and project-based non-recurring revenue streams. Management also noted the impact of new installations and conversion to a subscription basis of Checkit UK calibration and maintenance contracts in the healthcare sector.

Cash control remained admirably strong, recording £14.3m at 31 January, £12.8m at the end of April and £13.4m at the close of Q2 in July.

This update introduces notes of optimism to counterbalance the uncertainties introduced by the COVID situation. Not just the self-evident strong cash and cost control, but also the resilience of recurring revenue streams and focus on healthcare as a promising demand vertical. All driven by ever increasing demand for remote and reliable monitoring.

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