Checkit passes £1m revenue milestone
Elektron Technology plc in Cambridge reports a significant milestone for Checkit, its subsidiary business focused on providing real-time operations management and monitoring technology.
Contracted annual recurring revenue has now passed £1 million, which is ahead of management expectations. This compares to over £0.75 million per annum of ARR for Checkit as at January 31.
ARR relates to systems already installed and agreed to be installed and is therefore a leading indicator of committed future turnover.
The Checkit service is based on a software as a service model with subscription income being recognised monthly in the financial accounts.
In the first month of a contract only one month’s income will be recognised and therefore it takes 12 months until ARR from each contract is fully reflected in Checkit annual turnover, which also includes one off services such as installation, training and consultancy.
In the years ending January 31, 2017 and 2018 Checkit sales were £0.3 million (audited) and £0.5 million (unaudited) respectively.
John Wilson (pictured), Elektron’s CEO, said: “Checkit has moved from startup to scale-up phase and the board remains confident in the overall long term growth prospects of the business.”