Job cuts on the cards at Checkit plc as trading climate changes

Checkit has moved to fortify its bottom line in what it calls an “evolving economic landscape in the US and UK.”

It flags up the UK National Insurance increase and the introduction of US trade tariffs, which are contributing to uncertainty and caution among customers.

A review of Checkit’s operations and cost base, has resulted in the identification and implementation of measures expected to deliver annualised cash savings of approximately £3 million. The measures will involve one-off exceptional cash costs of approximately £0.4 million in the current year.

A staff productivity programme – a managed restructuring subject to a consultation process – will result in a reduced number of roles across various departments, the company says.

The cost reduction programme is expected to yield annualised cash savings of approximately £3 million from quarter two of the current financial year, with the full benefit to be realised in the subsequent financial year.

The implementation of these measures is expected to bring forward the point at which the company starts to generate net cash inflows.

CEO Kit Kyte, said: “We are refining Checkit’s operating model to improve efficiency, to enhance performance, and to accelerate our transition to profitability.

“By streamlining costs and focusing resources on key areas, we are strengthening the business for long-term success. Our commitment to delivering value to customers and shareholders remains our priority.”