Checkit bosses signal march towards profitability

Checkit is an augmented workflow and smart sensor automation company for frontline workers and reports continued momentum in line with board expectations.

Total group revenue from continuing operations was up 17 per cent to £12 million and the company produced a 23 per cent reduction in cash burn – from £15.6m to £9m in the year.

It reported “progress towards profitability with a 46 per cent improvement in adjusted LBITDA from continuing operations of £3.4m compared to a £6.4m in FY23. That was driven by revenue growth of 17 per cent, an increase in gross margins from 63 per cent to 67 per cent and an 11 per cent cut in operating costs.

“We continue to execute against our growth strategy and develop our technology, while progressing on our path to profitability,” the company said.

It added: “The board expects to reach breakeven in FY27 (calendar year 2026) and are confident the company has sufficient resources to achieve this.”

Kyte said: “Checkit has successfully reduced its financial losses by 46 per cent this fiscal year while continuing to escalate our growth through strategic 'land and expand' opportunities.

“We are on track to become cashflow breakeven and anticipate posting a positive EBITDA performance in FY27. The launch of our new product Asset Intelligence marks an exciting chapter in the evolution of our offering and demonstrates the synergies in the Checkit product ecosystem as data collected from IoT sensors acts as a catalyst for future software growth.

“We continue to focus on our twin goals of expedited profitability whilst driving top-line growth in the business and look forward to FY25 with confidence.”

Chair Keith Daley said the trading improvement defied general economic uncertainty and said that having transitioned to an exclusively subscription-based model, the goal was now to enhance revenue growth in the company’s key markets of Western Europe and North America.

Congratulating Kyte for steering the business to greener pastures despite a tough macro-economic backdrop, Daley emphasised the many positives. He said: “We are helping large blue-chip customers to be as productive, efficient, and compliant as possible in the face of cost pressures and operational complexities.

“Our industry-leading customer retention rates demonstrate how embedded our growing range of capabilities have become within our clients' technology stacks; a trend we expect to continue as the tailwinds of digital transformation, operational efficiency imperatives, and automation strengthen.

“In FY24, we have re-examined each of our markets and products and concluded there is substantial long-term value to be created by continuing to invest in product innovation to spearhead the growth of our high quality recurring subscription revenue.

“Our levels of recurring revenue give us excellent future income visibility and provide a stable platform from which to expedite the path to profitability – a key company priority over the next two years.”