Checkit sees US growth and opens up new markets

The Cambridge company provides an intelligent operations platform for the deskless worker. It has seen particular growth in the US and has also opened up new industry markets such as food manufacturing and R & D labs. CEO Kit Kyte is optimistic for the future despite the UK stock falling slightly on the unaudited trading figures.

Revenue grew 17 per cent to £12 million in line with market expectations ‘despite the challenging global economy’ while a focus on gross margin expansion continued to deliver, Kyte said.

As a consequence, Checkit expects losses to be better than expected and nearly halve for the year to £3.4m (2023: LBITDA of £6.4m) as the company drives operational efficiencies and carefully manages costs across the business.

Year-end cash of £9m reflected a 46 per cent reduction in LBITDA and the strategic purchase of inventory to mitigate supply chain constraints in the market. The company expects this position to unwind over the next 12-18 months, supporting further revenue growth.

Kyte said: “The second half of the year has seen further progress on our stated strategy and our drive towards profitability. Our new AI enhanced products are, we believe, best in class and a step change ahead of what's currently available in the market. We will continue to focus on driving top-line growth in the business and look forward to FY25 with confidence.”

He said Checkit’s 'Land and Expand' strategy of up-selling and cross-selling had generated growth from the existing customer base while at the same time the business had actively identified areas of expansion and opportunity both geographically and vertically.

“With recurring revenues now representing 93 per cent of the total and our high net revenue retention of 111 per cent, we have a sound base to pursue our drive towards profitability,” the company said.

During the year, utilising data collected and new AI and ML tools, Checkit added new functionality to its products designed to allow customers to deliver sustainability and energy saving initiatives and benefit from predictive maintenance of their assets.

This is being actively trialled by one of Checkit’s largest customers and the company is confident that these developments will provide significant value to the group and users of the technology.

The update concluded: “We have continued to invest in our products and our markets and we are gaining traction geographically, with 26 per cent of ARR now generated in the US and as we develop our offerings to address new sectors, such as food manufacturing and R & D laboratories.”