TIDMCKT
RNS Number : 6141J
Checkit PLC
28 April 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF UK MARKET ABUSE REGULATION . UPON THE PUBLICATION OF THIS
ANNOUNCEMENT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE WITHIN
THE PUBLIC DOMAIN.
28 April 2022
Checkit plc
("Checkit", the "Company" or the "Group")
Preliminary results for the Year Ended 31 January 2022
Checkit plc (AIM: CKT) announces its unaudited preliminary
results for the year ended 31 January 2022 ("FY22") ahead of the
release of the audited accounts and annual report, which will be
published ahead of the Annual General Meeting, which is expected to
take place on 9 June 2022 .
The Group's management team will host a live webinar which will
include an opportunity for questions at 12:00 (BST) on 28 April
2022. The webinar can be accessed via the news area of the website
at https://www.checkit.net/news/ or by using this link:
https://us02web.zoom.us/webinar/register/1216475075630/WN_eTaq6R5SQIGkVnk-6ZbLpg
FY22 HIGHLIGHTS
-- Pipeline at year end GBP15.4m
-- Annual recurring revenue ("ARR") run rate at year end of
GBP8.2m (+43%) ahead of market expectations (FY21: GBP5.8m
normalised*)
-- Annualised sales bookings at year end of GBP3.5m
-- Recurring revenue (+31% to GBP6.8m) supported by new customer
wins and expansion within existing accounts (FY21: GBP5.2m)
-- Total Group revenue from continuing operations GBP13.3m (-7%) (FY21: GBP14.4m normalised)*
-- Non-recurring revenue declined by 29% primarily driven by the
planned transition of BEMS activity to a SaaS (Software as a
Service) offering as outlined at the time of the fundraise
-- Operating loss before non-recurring or special items**
GBP4.7m (FY21: loss of GBP3.1m) reflecting the ongoing investment
to accelerate Checkit's strategic plan
-- Operating loss of GBP7.1m (FY21: loss of GBP5.3m)
-- Cash at year end of GBP24.2m (FY21: GBP11.5m) following
receipt of proceeds from the placing, which raised GBP21m (gross)
to accelerate the Group's growth strategy
-- Appointment of Kit Kyte, Chief Executive Officer, bringing a
renewed focus on the go-to-market strategy, value-driven sales, and
leading the transition of Checkit towards a pure SaaS business.
-- Strengthened US presence with the acquisition of Tutela
Monitoring Systems LLC ("Tutela"), establishing a US base in
Florida.
* Normalised revenue refers to revenue that would have been
included in the Group's financial results had Tutela LLC, which was
acquired on 4 February 2021, been owned by the Group throughout
both periods.
** Non-recurring or special items include such items as
restructuring, acquisition and fundraising costs and amortisation
of acquired intangibles and other non--recurring items incurred
outside the normal course of business.
Outlook
-- Trading since the start of the new financial year has
progressed well, in line with the Board's expectations. We have
secured new customers, expanded within existing accounts, and
continued to progress our investment plans to support our growth
strategy.
Checkit plc
www.checkit.net
Kit Kyte (Chief Executive Officer)
Greg Price (Chief Financial Officer) +44 (0) 1223 371 000
Singer Capital Markets (Nominated Adviser
and Broker)
Shaun Dobson / Harry Gooden / George Tzimas +44 (0) 207 496 3000
CHAIRMAN'S STATEMENT
Dear Shareholder
I am pleased to present the Checkit 2022 preliminary
results.
At the end of the 2022 financial year, I completed 17 years as a
director of the Group and for much of the period, this was in an
executive capacity. It was time for me to step back from an
operational role and to that end, I became non-executive with
effect from 1 February. In recent years what was originally a
mini-conglomerate has been increasingly concentrated on the high
growth technology business of Checkit. That transformation is
complete, giving management a single focus.
During the year, leadership of the Group was transferred to Kit
Kyte and both as shareholder and director, I am excited by his
vision. You will read more about this in the Annual Report. My
other board colleagues, namely Greg Price (CFO), John Wilson
(Senior Independent Director) and Simon Greenman (Non-Executive
Director) have provided immense support. We continue to examine
board composition, particularly with a view to improving
diversity.
I want to personally welcome the new shareholders that joined us
in the recent placing and thank all of our investors for their
support over the past year.
Finally and most importantly, I should like to thank all past
and present employees of Checkit (and Elektron Technology plc in
its former incarnation) for their energy and dedication in creating
value for shareholders. Although we live in an uncertain world, I
believe that the future for Checkit is bright.
Keith Daley
Chair
CEO'S STATEMENT
The growth of our customer base since the beginning of the last
financial year, transitioning towards a pure SaaS business model,
releasing the next generation of our Connect platform and the
successful capital raise were all major milestones for Checkit. It
is a huge testament to the hard work of our team that these
achievements were delivered against the backdrop of the COVID-19
pandemic.
As with so many businesses, our standard form of interaction
with newly onboarded customers and prospects was restricted by the
continuation of lock-down measures. Checkit has continued to
respond with ingenuity and commitment and adapted our
implementation and installation programmes to be delivered remotely
and we are proud to have demonstrated the same benefits to our
customers versus traditional methods of delivery. We also extended
our offering by building self-install features, digital adoption
technology and enhanced AI/ML capabilities into the platform. We
continue to see significant global engagement with our core value
offering through key expansion and new deals in Australia, New
Zealand and North America.
Strong financial performance
Checkit has produced a strong set of financial results in FY22,
delivering a second consecutive year of high quality recurring
revenue growth by continuing to focus on attracting new customers,
while expanding our footprint and implementing price initiatives
with existing customers.
Annual recurring revenue grew by 43% to GBP8.2m (FY21: GBP5.7m),
driven by strong sales during H2. New business contributed to
GBP0.8m of this growth, driven by transformed market positioning
and through demonstrating measurable value to customers. The
increase in ARR resulted in 31% growth in reported recurring
revenue of GBP6.8m (FY21: GBP5.1m). The lag in Group recurring
revenue percentage growth, compared to the growth rate of ARR
reflects the acceleration of contracts signed during the second
half of the financial year.
Reflecting ongoing investment to drive strategic execution,
operating losses for the year (before non-recurring or special
items) in FY22 increased to GBP4.7m (2021: GBP3.1m loss). The Group
invested in its product, sales and marketing functions to support
its expansion, increasing new product development spend to GBP3.4m
(FY21: GBP2.5m) as the Group invested in new enhanced
functionality, including mobile alerting, shared libraries and
job-sharing capabilities, in addition to doubling sales and
marketing investment to GBP2.7m (FY21: GBP1.4m) with an expanded
sales and marketing team in both the UK and US to fuel growth. This
latter investment allowed the Group to deliver new sales bookings
of GBP3.5m.
This strong performance is underpinned by the Group's
transformation into a scale up SaaS business. The Group is now
wholly focused on delivering recurring revenue from its technology
solutions. As a result, recurring revenue accounted for 51% of
total revenue for the full year and in the last three months of the
year, it contributed 75% of total revenue for that period as
Checkit continues its transition into a pure SaaS business.
Building a sustainable, software-driven growth business
We are entering the most exciting period in Checkit's history.
Let me explain why.
Through the evolution of our go-to-market strategy, the Group
has increased its sales pipeline to GBP15.4 million during the
financial year and by year end we had secured more than GBP3.5m of
annualised new bookings.
Alongside this, the Company has also improved the quality of the
sales pipeline by achieving a higher mix of opportunities from tier
one and two enterprise targets. The split of the sales pipeline by
FY22 year-end between tier one, tier two and tier three targets was
54%, 37% and 9% respectively, compared to 21%, 72%, and 6%
respectively in January 2021.
Checkit's new customer pipeline in the US, a key growth market
for the Company, now includes a number of multi-site organisations
across the healthcare, food and hospitality sectors. The recent
award, before year end, of the Grifols contract in the US at a
minimum value of GBP2.7m over three years is further evidence of
the size of the opportunity in this market.
A rapidly evolving industry
Surprisingly, 73% of frontline employees are still using manual
and paper-based processes to conduct their work. The knowledge of
how to perform those processes is kept in their heads, and the
outputs stored on paper which results in: knowledge "walking out of
the door" when such workers move jobs or retire, inconsistent work
being performed, and a lack of visibility (particularly in real
time) of the state of the business - leading to the creation of
what Checkit refers to as "dark operations". Dark operations occur
when a large proportion of operations are hidden from view, making
it difficult for managers to measure productivity and identify
risks and opportunities within their business.
We believe that there is a compelling need to digitise the
deskless workforce to enable organisations to: (i) track and
optimise performance, (ii) reduce costs and wastage; and (iii)
increase efficiency, especially against a backdrop of rising labour
costs and supply chain challenges, which are significantly
impacting service delivery.
Growth strategy and ambitions
Checkit is well positioned to capitalise on this growth
opportunity due to the following key strengths which differentiate
its offering from that of its competitors:
-- Checkit is meeting market demand with what we believe to be
an unrivalled end-to-end solution. The Checkit platform possesses
powerful AI, data and analytics capabilities to provide meaningful
insights and enable data driven decisions;
-- providing fully automated connectivity between client assets (IoT) and the Checkit platform
-- the Company has built up considerable domain knowledge of the
industries it serves, which will help the Company to adapt to an
evolving business landscape; and
-- enhanced credibility and customer trust due to its status as
a mature, listed and regulated entity.
The Company intends to significantly expand into the US market,
with on the aim of growing it to become the leading contributor of
ARR to the business by the end of FY24. In order to capitalise on
the opportunity presented by expanding into the US and also the
rest of the world, the Company intends to scale up the headcount of
sales and marketing in both regions.
Checkit's longer term objectives include becoming the market
leader in workflow management for the deskless worker industry and
growing the US to become the leading contributor of ARR to the
business.
In order to achieve our growth objectives and deliver
shareholder value, the Company's strategy will focus on:
1. Converting Checkit into a pure SaaS business - with the aim
to create a fully integrated AI platform with the ability to
integrate third party IoT within its ecosystem. The improved
Checkit platform will also be the foundation of the Smart Building
SaaS offering once the transition from Building and Energy
Management Systems (BEMS) is complete
2. Accelerating scale and global growth - the Company will
invest significantly into sales and marketing efforts to drive top
line growth coupled with further development of the Checkit AI
platform to create a market leading product. ARR growth will be
further accelerated through investment in a separate sales function
to focus on increasing opportunities via partnerships. The Company
will also consider compelling M&A opportunities as an
additional scale opportunity.
3. Transform the operating model and culture of the business -
in order to improve the prospects of achieving our growth
objectives, we will seek to optimise the Company's existing
processes across its business and continuously assess potential
cost efficiencies with the aim of improving margins. Of paramount
importance will be our ability to maintain and grow a high
achieving mentality across the Checkit workforce.
Positive Outlook
Our purpose is to simplify and digitise the running of
operations for the deskless industry - and never has that been more
important. We know that simplifying how organisations manage
operational performance has a transformative impact on
organisational success, the wellbeing of employees and the outcomes
for customers.
When we look back at what was a tumultuous year for us all, we
are excited at the progress we have made as a business and proud of
the support we have given our customers, providing them with the
insight, tools and methodology to thrive in these challenging
times. I join our Chairman and the rest of the management team in
thanking our entire team around the world for their support through
what has been a tough year for so many. I am incredibly proud of
everything the team has achieved to date, building a market leading
offering as well as a long-term, international, blue-chip customer
base. However, we are very much still at the start of our journey.
Global supply chain challenges, the rising cost of labour and
increased compliance requirements mean that the premium on
simplifying deskless operations has never been more relevant.
The Board continues to expect to meet FY23 market expectations
and remains confident that we are well positioned to deliver
strong, sustainable organic growth.
Whilst the conflict in Ukraine has no direct impact on the
Group's activities, the Board remains cautious about its indirect
impact together with the potential for general inflationary cost
pressures.
Kit Kyte
CEO
FINANCIAL REVIEW
Delivering smart growth
The financial results for FY22 represent another year of strong
progress for Checkit. The Group's strategy to invest to support its
expansion, with a focus on delivering recurring revenue from its
technology solutions, has resulted in a second consecutive year of
significant ARR growth.
Investment in the business has resulted in operating losses for
the year (before non-recurring or special items) increasing to
GBP4.7m (2021: GBP3.1m loss). Investment has centered on new
product development and an enlarged sales and marketing presence
both in the UK and the US. The Group's acquisition of Tutela in
February 2021 has provided a platform for Checkit, allowing the
Group to accelerate its geographical expansion.
In November 2021, the Group successfully raised GBP20.0m (net of
expenses) through the placing of 45.6m new shares. The placing was
significantly oversubscribed as investors recognised the growth
potential and market opportunity presented by the Group.
The Group intends to use the proceeds raised to accelerate its
growth strategy, investing further in sales and marketing to drive
top line growth, transforming its operating model to enable future
cost efficiencies and continuing to develop the Checkit platform to
create a market leading product. This cycle of sales execution and
phased investment will allow Checkit to deliver smart growth.
ARR and Revenue
The table below shows ARR and revenue for the year ended 31
January 2022 and includes comparisons with reported and normalised*
prior year values.
ARR grew by 43% to close at GBP8.2m (FY21: 5.8m normalised),
driven by strong H2 sales bookings.
Total revenue for FY22 was GBP13.3m, a reduction of 7% compared
to the prior year on a normalised basis (FY21: GBP14.4m
normalised). While recurring revenue grew by 31%, non-recurring
revenue declined in line with management's expectations.
(GBP'm) Twelve months to
31 January 31 January 31 January % Change
2022 2021 2021 Normalised
Actual Actual Normalised
(1)
ARR 8.2 5.7 5.8 +43%
Revenue
Recurring 6.8 5.1 5.2 +31%
Non-recurring 6.5 8.1 9.2 (29) %
Total Group 13.3 13.2 14.4 (7) %
*Prior year revenue has been normalised to illustrate revenue
that would have been included in the Group's financial results had
Tutela LLC (acquired 4 February 2021) been fully owned by the Group
throughout both periods.
ARR growth was driven by sales to new customers, as well as
through pricing initiatives and upselling to existing
customers.
New business was driven by transformed market positioning and
through demonstrating measurable value to customers.
The acquisition of Tutela enhanced Checkit's reach within the
Healthcare sector, making this the fastest growing industry
vertical. Together with NHS trusts in the UK, Healthcare now
represents 57% of Checkit's ARR and offers significant growth
potential, both in terms of further customer acquisition and cross
sell within existing customers.
The Group also extended its successful programme of transferring
customers to new subscription-based agreements to the US, combining
recurring services with one-off activities in line with the "peace
of mind" SaaS pricing and contractual model now adopted across
Checkit.
As a result of this pricing initiative, the business unit saw
further conversion from non-recurring to recurring revenue during
the year, contributing approximately GBP0.3m to ARR.
The increase in ARR resulted in 31% growth in reported recurring
revenue compared to prior year on a normalised basis.
Recurring revenue includes like-for-like US recurring revenue
growth of 82%, driven by the strong bookings performance noted
above. The lag in Group recurring revenue percentage growth,
compared to the growth rate of ARR reflects the acceleration of
contracts signed during the second half of the financial year.
Recurring revenue accounted for 51% of total revenue for the
full year. In the last three months of the year, recurring revenue
contributed 75% of total revenue as Checkit continued its
transformation into a pure SaaS business.
Non- recurring revenue declined in line with management's
expectations and as planned. The Group is now wholly focused on
delivering recurring revenue from its technology solutions
(including those relating to smart buildings), rather than
traditional BEMS one-off projects with minimal software input.
EBIT
The Group operating loss before non-recurring or special items
in FY22 was GBP4.7m (2021: GBP3.1m loss).
In line with the Group's strategy, operating expenses (excluding
any non-recurring or special items) increased to GBP10.9m (2021:
GBP9.6m), as the Group invested in its product, sales and marketing
to support its expansion.
New product development (NPD) spend totalled GBP3.4m (FY21:
GBP2.5m), of which GBP1.5m was capitalised (FY21: GBPnil), as the
Group invested in new enhanced functionality, including mobile
alerting, shared libraries and job sharing capabilities.
Investment in sales and marketing almost doubled to GBP2.7m
(FY21: GBP1.4m), as the Group invested in an expanded sales and
marketing team in both the UK and US to fuel growth, with a
strategic focus on creating enterprise level relationships with
large multi-national and highly distributed customers.
Non-recurring or special items
Non-recurring or special items in the year of GBP2.4m related to
amortisation of acquired intangible assets, costs relating to the
fundraise, and restructuring and other one-off unusual costs
related to the organisational transformation programme:
FY22
GBPm
Restructuring and transformation costs 0.7
Costs relating to fundraise 0.1
Disposal costs of India operations 0.2
Amortisation of acquired intangible
assets 1.4
Total non-recurring or special items 2.4
--------------------------------------- -----
Taxation
The Group is currently loss making and therefore no corporate
tax charge is reported for the year FY22. A deferred tax credit of
GBP0.3m arises from the amortisation of intangible assets arising
on the acquisition of Checkit UK Limited. There remains over GBP22m
in group carried forward taxable losses and therefore there is no
expectation of tax payments in the short to medium term.
EPS - continuing operations
The weighted average number of shares in issue in FY22 was
68.1m. Loss per share (basic & diluted) was 10.0 pence (2021:
8.3 pence)
Acquisition
The acquisition of Tutela took place in February 2021 and cost
GBP0.4m, net of GBP0.2m of cash acquired with the business. The
acquisition enables the Group to accelerate its US expansion plans,
providing a footprint and an opportunity to add further scale.
Cash
The group cash position at 31 January 2022 was GBP24.2m (31
January 2021: GBP11.5m), reflecting the oversubscribed placing in
November 2021, when the Group raised net proceeds of approximately
GBP20.0m. As a result, Checkit is well capitalised and strongly
positioned to accelerate its programme of investment, with the
intention of achieving further ARR growth in FY23.
Consolidated statement of comprehensive income
year ended 31 January 2022
Restated
2022 2021
Notes GBPm GBPm
---------------------------------------------------------- ----- ------- --------
Revenue 2 13.3 13.2
Cost of sales (7.1) (6.7)
---------------------------------------------------------- ----- ------- --------
Gross profit 6.2 6.5
Operating expenses
---------------------------------------------------------- ----- ------- --------
Operating expenses (excluding non-recurring or special
items) (10.9) (9.6)
---------------------------------------------------------- ----- ------- --------
Operating loss before non-recurring or special items (4.7) (3.1)
Non-recurring or special items 3 (2.4) (2.2)
---------------------------------------------------------- ----- ------- --------
Total operating expenses (13.3) (11.8)
---------------------------------------------------------- ----- ------- --------
Operating loss 3 (7.1) (5.3)
Finance income - -
---------------------------------------------------------- ----- ------- --------
Loss before taxation (7.1) (5.3)
Taxation 5 0.3 0.3
---------------------------------------------------------- ----- ------- --------
Loss from continuing operations (6.8) (5.0)
Profit from discontinued operations 8 - 0.6
---------------------------------------------------------- ----- ------- --------
Loss for the year attributable to equity shareholders (6.8) (4.4)
---------------------------------------------------------- ----- ------- --------
Other comprehensive income/(expense)
Exchange differences on translation of foreign operations - -
Reclassification of exchange differences to income
statement for discontinued items - -
---------------------------------------------------------- ----- ------- --------
Total comprehensive income for the financial year
attributable to equity shareholders (6.8) (4.4)
---------------------------------------------------------- ----- ------- --------
Loss per share from continuing operations
Basic EPS 6 (10.0)p (8.3)p
Diluted EPS 6 (10.0)p (8.3)p
---------------------------------------------------------- ----- ------- --------
Consolidated balance sheet
as at 31 January 2022
2022 2021
Notes GBPm GBPm
------------------------------------------------- ----- ----- -----
Assets
Non-current assets
Goodwill arising on acquisition 7 4.5 4.3
Other intangible assets 7 2.8 1.7
Property, plant and equipment 1.0 0.8
Total non-current assets 8.3 6.8
------------------------------------------------- ----- ----- -----
Current assets
Inventories 1.8 1.1
Trade and other receivables 3.0 4.9
Cash and cash equivalents 24.2 11.5
------------------------------------------------- ----- ----- -----
Total current assets 29.0 17.5
------------------------------------------------- ----- ----- -----
Total assets 37.3 24.3
------------------------------------------------- ----- ----- -----
Current liabilities
Trade and other payables 5.2 5.6
Contract lease liabilities 0.5 0.3
------------------------------------------------- ----- ----- -----
Total current liabilities 5.7 5.9
------------------------------------------------- ----- ----- -----
Non-current liabilities
Deferred tax liabilities 0.1 0.3
Long-term contract lease liabilities 0.2 0.2
Long-term provisions 0.3 0.3
------------------------------------------------- ----- ----- -----
Total non-current liabilities 0.6 0.8
------------------------------------------------- ----- ----- -----
Total liabilities 6.3 6.7
------------------------------------------------- ----- ----- -----
Net assets 31.0 17.6
------------------------------------------------- ----- ----- -----
Equity attributable to the owners of the Company
Called up share capital 5.4 3.1
Share premium 23.3 5.4
Capital redemption reserve 6.4 6.4
Own shares - -
Other reserves 0.1 0.1
Retained earnings (4.2) 2.6
------------------------------------------------- ----- ----- -----
Total equity 31.0 17.6
------------------------------------------------- ----- ----- -----
Consolidated statement of changes in equity
year ended 31 January 2022
Capital
Share Share redemption Own Other Translation Retained
capital premium reserve shares([1]) reserves reserve earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
---------------------- -------- -------- ----------- ------------ --------- ----------- --------- -----
At 31 January 2020 3.1 5.4 6.4 (0.7) - - 7.2 21.4
Loss for the year - - - - - - (4.4) (4.4)
---------------------- -------- -------- ----------- ------------ --------- ----------- --------- -----
Total comprehensive
income for the year - - - - - - (4.4) (4.4)
---------------------- -------- -------- ----------- ------------ --------- ----------- --------- -----
Correction of reserve
classification - - - 0.2 - - (0.2) -
Own shares sold - - - 0.5 - - - 0.5
Share based payments - - - - 0.1 - - 0.1
---------------------- -------- -------- ----------- ------------ --------- ----------- --------- -----
Transaction with
owners - - - 0.7 0.1 - (0.2) 0.6
---------------------- -------- -------- ----------- ------------ --------- ----------- --------- -----
At 31 January 2021 3.1 5.4 6.4 - 0.1 - 2.6 17.6
Loss for the year - - - - - - (6.8) (6.8)
---------------------- -------- -------- ----------- ------------ --------- ----------- --------- -----
Total comprehensive
income for the year - - - - - - (6.8) (6.8)
Issue of new shares 2.3 17.9 - - - - - 20.2
Share based payments - - - - - - - -
---------------------- -------- -------- ----------- ------------ --------- ----------- --------- -----
Transaction with
owners 2.3 17.9 - - - - - 20.2
---------------------- -------- -------- ----------- ------------ --------- ----------- --------- -----
At 31 January 2022 5.4 23.3 6.4 - 0.1 - (4.2) 31.0
---------------------- -------- -------- ----------- ------------ --------- ----------- --------- -----
1 Shares held by the Elektron Technology 2012 EBT were treated
as treasury shares. All of the own shares were sold by the trust
during the prior year, resulting in a gain.
Consolidated statement of cash flows
year ended 31 January 2022
2022 2021
Notes GBPm GBPm
------------------------------------------------------- ----- ----- -----
Net cash outflow from operating activities 4 (4.9) (2.9)
------------------------------------------------------- ----- ----- -----
Investing activities
Interest received on bank deposits - -
Purchase of property, plant and equipment (0.1) (0.3)
Investment in product development projects (1.5) -
Investment in other intangibles (0.7) -
Purchase of business (net of GBP0.2m cash acquired) (0.4) -
Sale of businesses (net of cash sold) 8 0.4 0.3
------------------------------------------------------- ----- ----- -----
Net cash used in investing activities (2.3) -
------------------------------------------------------- ----- ----- -----
Financing activities
Issue of new shares 20.2 -
Sale of own shares - 0.5
Repayment of contract lease liabilities (0.3) (0.4)
------------------------------------------------------- ----- ----- -----
Net cash generated by financing activities 19.9 0.1
------------------------------------------------------- ----- ----- -----
Net increase / (decrease) in cash and cash equivalents 12.7 (2.8)
Cash and cash equivalents at the beginning of the
year 11.5 14.3
------------------------------------------------------- ----- ----- -----
Cash and cash equivalents at the end of the year 24.2 11.5
------------------------------------------------------- ----- ----- -----
1. Basis of Preparation
The unaudited preliminary consolidated financial statements
comply with the recognition and measurement criteria of UK-adopted
International Accounting Standards (IFRS) and with the requirements
of the Companies Act 2006 as applicable to companies reporting
under those standards and with the accounting policies of the Group
which were set out on pages 62 to 69 of the 2021 Annual Report and
Accounts.
There were no new standards or amendments or interpretations to
existing standards that became effective during the year that were
material to the Group.
No new standards, amendments or interpretations to existing
standards having an impact on the financial statements that have
been published and that are mandatory for the Group's accounting
periods beginning on or before 1 February 2022, or later periods,
have been adopted early.
Whilst the financial information included in this preliminary
announcement has been computed in accordance with international
accounting standards, this announcement does not itself contain
sufficient information to comply with all IFRS disclosure
requirements. The Company's 2022 Annual Report and Accounts will be
prepared in compliance with UK-adopted International Accounting
Standards (IFRS).
The unaudited preliminary announcement does not constitute a
dissemination of the annual financial report and does not therefore
need to meet the dissemination requirements for annual financial
reports. A separate dissemination announcement in accordance with
Disclosure and Transparency Rules (DTR) 6.3 will be made when the
annual report and audited financial statements are available on the
Company's website.
Statutory Information
The financial information included in this preliminary
announcement does not constitute statutory accounts. The statutory
accounts for the year ended 31 January 2021 have been delivered to
the Registrar of Companies and received an unqualified auditors'
report, did not draw attention to any matters by way of emphasis
and did not contain statements under s498 (2) or (3) of the
Companies Act 2006.
The statutory accounts for the year ended 31 January 2022 will
be finalised on the basis of the financial information presented by
the directors in this unaudited preliminary announcement and will
be delivered to the Registrar of Companies following the Company's
General Meeting. The announcement of the preliminary results was
approved on behalf of the Board of directors on 27 April 2022.
Restatement of prior year
The Group has changed its accounting policy for Cost of Sales to
better reflect the management of the business and only include
costs directly incremental to delivering revenue. Cost of sales now
includes the cost of materials and hardware, the direct labour
costs relating to delivery, external systems and associated direct
hosting costs for cloud platform products. All other operating
expenses incurred in the ordinary course of business are recorded
in selling and administrative expenses.
The prior year consolidated statement of comprehensive income
and related notes have been restated for the reclassification of
certain costs between cost of sales and administrative expenses.
Consequently, 2021 results have been restated in these financial
statements to reflect a reduction in cost of sales of GBP1.8m, with
a corresponding increase in operating expenses. The overall
operating loss for the year for the Group remains unchanged.
Quantitative impact of restatement on financial results
As originally Reclassification
reported of costs As restated
Year ended 31 January 2021 GBPm GBPm GBPm
-------------------------------------------- ------------- ---------------- -----------
Consolidated statement of comprehensive
income
Revenue 13.2 - 13.2
Cost of sales (8.5) 1.8 (6.7)
Gross profit 4.7 1.8 6.5
Operating expenses (excluding non-recurring
or special items) (7.8) (1.8) (9.6)
Operating loss before non-recurring
or special items (3.1) - (3.1)
Non-recurring or special items (2.2) - (2.2)
Total operating expenses (10.0) (1.8) (11.8)
Operating loss (5.3) - (5.3)
-------------------------------------------- ------------- ---------------- -----------
2. Segmental reporting
Management provides information reported to the Chief Operating
Decision Maker ("CODM") as a single operating segment for the
purpose of assessing performance and allocating resources. The CODM
is the Chief Executive Officer.
The Group's main activities are the supply of Connected Workflow
Management, automated monitoring and building management, Internet
of Things ("IoT"), and operational insight-based products and
services.
Revenue by type of the continuing operations
The following table presents the different revenue streams of
Checkit:
2022 2021
GBPm GBPm
---------------------------------------------- ----- -----
Recurring revenues from subscription services 6.8 5.1
Installation maintenance and support 6.5 8.1
---------------------------------------------- ----- -----
Total 13.3 13.2
---------------------------------------------- ----- -----
Geographical information
The Group considers its operations to be in the following
geographical regions:
Revenue from
external customers
---------------------
2022 2021
GBPm GBPm
--------------- ---------- ---------
United Kingdom 11.7 12.7
The Americas 1.6 0.5
--------------- ---------- ---------
Total 13.3 13.2
--------------- ---------- ---------
Information about major customers of the continuing
operations
During FY22, the Group had one customer who generated revenues
of 29% of total revenue (FY21: 29%).
Revenue expected to be recognised
The Group expects to recognise revenue amounting to GBP2.3m
(2021: GBP2.1m) in FY23 relating to performance obligations from
existing contracts that are unsatisfied or partially satisfied as
at 31 January 2022.
3. Operating loss - continuing operations
2022 2021
GBPm GBPm
--------------------------------------------------------- ----- -----
Operating loss is after charging/(crediting):
Depreciation on owned property, plant and equipment 0.2 0.1
Depreciation on right-of-use assets 0.3 0.5
Product development costs expensed 1.9 2.5
Government job retention scheme - (0.4)
--------------------------------------------------------- ----- -----
Auditor's remuneration:
----- -----
- fees payable to the Company's auditor for the audit of
the Company's annual accounts - -
- fees payable to the Company's auditor for the audit of
the Company's subsidiaries pursuant to legislation 0.2 0.1
----- -----
Total audit fees for audit services 0.2 0.1
Tax services - 0.1
--------------------------------------------------------- ----- -----
Total auditor's remuneration 0.2 0.2
--------------------------------------------------------- ----- -----
Non-recurring or special items:
----- -----
- Restructuring and integration costs 0.7 0.8
- Costs incurred in issue of new shares 0.1 -
- Disposal costs of India operations 0.2 -
- Pre-acquisition costs of Tutela LLC - 0.1
- Amortisation of acquired intangible assets 1.4 1.3
Total non-recurring or special items 2.4 2.2
--------------------------------------------------------- ----- -----
Included within auditor's remuneration for audit services in
FY22 is a sum for less than GBP0.1m (2021: less than GBP0.1m) for
the audit of overseas subsidiaries carried out by an auditor other
than Grant Thornton UK LLP.
Grant Thornton UK LLP was paid less than GBP0.1m for tax
advisory and compliance services (2021: GBP0.1m).
4. Net cash flows from operating activities
2022 2021
Notes GBPm GBPm
--------------------------------------------------- ----- ----- -----
(Loss)/profit before taxation
- from continuing operations (7.1) (5.3)
- from discontinued operations (before tax) 8 - 0.6
Adjustments for:
Depreciation 0.5 0.6
Amortisation 1.4 1.3
Gain on the sale of discontinued businesses 8 - (0.5)
Share-based payments - 0.1
Finance income - -
--------------------------------------------------- ----- ----- -----
Operating cash flow before working capital changes (5.2) (3.2)
Decrease/(increase) in trade and other receivables 1.6 (0.9)
(Increase)/decrease in inventories (0.6) 0.6
(Decrease)/increase in trade and other payables (0.8) 0.6
--------------------------------------------------- ----- ----- -----
Operating cash flow after working capital changes (5.0) (2.9)
(Increase)/decrease in provisions - -
--------------------------------------------------- ----- ----- -----
Cash generated by operations (5.0) (2.9)
Tax credit received 0.1 -
--------------------------------------------------- ----- ----- -----
Net cash out fl ow from operating activities (4.9) (2.9)
--------------------------------------------------- ----- ----- -----
5. Taxation
(a) Analysis of tax (credit)/charge for the year - continuing
operations
2022 2021
GBPm GBPm
------------------------------------------------------ ----- -----
Current taxation:
UK corporation tax charge on profit for the year - -
Total current taxation - -
------------------------------------------------------ ----- -----
Deferred tax:
On separately identifiable acquired intangibles (as a
result of amortisation) (0.3) (0.3)
------------------------------------------------------ ----- -----
Total deferred taxation (0.3) (0.3)
------------------------------------------------------ ----- -----
Tax charge on continuing operations (0.3) (0.3)
------------------------------------------------------ ----- -----
(b) Analysis of tax charge for the year - discontinued
operations
2022 2021
GBPm GBPm
------------------------------------------------------ ----- -----
Current taxation:
UK corporation tax charge on profit for the year - -
Overseas corporation tax charge on profit for the year - -
Overprovision for prior year - UK - -
------------------------------------------------------ ----- -----
Total current taxation - -
------------------------------------------------------ ----- -----
Deferred tax:
Origination and reversal of temporary differences - -
Under provision in respect of prior years - -
------------------------------------------------------ ----- -----
Total deferred taxation - -
------------------------------------------------------ ----- -----
Tax charge on discontinued operations - -
------------------------------------------------------ ----- -----
(c) Factors affecting taxation charge for the year - continuing
operations
The effective tax rate for the year was 19%.
2022 2021
--------------- ---------------
Tax rate GBPm Tax rate GBPm
----------------------------------------------- -------- ----- -------- -----
Loss on continuing operations before taxation (7.1) (5.3)
Loss on ordinary activities multiplied by
weighted average standard rate of corporation
tax in the UK of 19% 19.0% (1.3) 19.0% (1.0)
----------------------------------------------- -------- ----- -------- -----
Effects of:
Expenses not deductible for tax purposes (1.3)% 0.1 (2.5)% 0.1
Temporary differences not recognised (2.1)% 0.1 2.6% (0.1)
Tax losses not recognised (11.3)% 0.8 (11.3)% 0.6
Surrender of losses to discontinued operations - - (1.9)% 0.1
----------------------------------------------- -------- ----- -------- -----
(4.3)% (0.3) (5.9)% (0.3)
----------------------------------------------- -------- ----- -------- -----
(d) Factors affecting taxation charge for the year -
discontinued operations
2022 2021
--------------- ---------------
Tax rate GBPm Tax rate GBPm
-------------------------------------------------- --------- ---- -------- -----
Profit on discontinued operations before taxation - 0.6
Profit on ordinary activities multiplied by
weighted average standard rate of corporation
tax in the UK of 19% - - 19.0% 0.1
-------------------------------------------------- --------- ---- -------- -----
Effects of:
Profits not subject to tax - - - -
Temporary differences not recognised - - - -
Surrender of losses from continuing operations - - (19.0)% (0.1)
Prior year adjustments - - - -
-------------------------------------------------- --------- ---- -------- -----
- - - -
------------------------------------------------------------ ---- -------- -----
(e) Factors that may affect future taxation charges
Deferred taxation assets amounting to GBP4.1m (2021: GBP2.9m)
have not been provided in respect of unutilised income tax losses
of GBP22.0m (2021: GBP15.5m) that can only be carried forward
against future taxable income of that same trade as there is
currently insufficient evidence that these assets will be
recovered.
The Finance (No.2) Act 2015 reduced the main rate of UK
corporation tax to 19%, effective from 1 April 2017. A further
reduction in the UK corporation tax rate to 17% was expected to
come into effect from 1 April 2020 (as enacted by Finance Act 2016
on 15 September 2016). However, legislation introduced in the
Finance Act 2020 (enacted on 22 July 2020) repealed the reduction
of the corporation tax, thereby maintaining the current rate of
19%. Deferred taxes on the balance sheet have been measured at 19%
which represents the future corporation tax rate that was enacted
at the balance sheet date.
The UK Budget 2021 announcements on 3 March 2021 included
measures to support economic recovery as a result of the ongoing
COVID-19 pandemic. These included an increase to the UK's main
corporation tax rate to 25%, which is due to be effective from 1
April 2023. These changes were not substantively enacted at the
balance sheet date and hence have not been reflected in the
measurement of deferred tax balances at the period end. If the
Group's recognised deferred tax balances at the period end were
remeasured at 25% this would result in a deferred tax charge of
GBP0.1m.
6. Earnings per share
Earnings per share (EPS) is the amount of post-tax profit
attributable to each share (excluding those held in the Employee
Benefit Trust or by the Company). Basic EPS measures are calculated
as the Group profit for the year attributable to equity
shareholders divided by the weighted average number of shares in
issue during the year. Diluted EPS takes into account the dilutive
effect of all outstanding share options priced below the market
price, in arriving at the number of shares used in its
calculation.
Both of these measures are also presented on an adjusted basis,
to remove the effects of non-recurring or special items, being
items of both income and expense which are sufficiently large,
volatile or one-off in nature, to assist the reader of the
financial statements to get a better understanding of the
underlying performance of the Group. The note below demonstrates
how this calculation has been performed.
2022 2021
Key m m
-------------------------------------------------- ---- ---- ----
Weighted average number of shares for the purpose
of basic earnings per share A 68.1 61.5
Dilutive effect of employee share options([) *(]) - -
-------------------------------------------------- ---- ---- ----
Weighted average number of shares for the purpose
of diluted earnings per share B 68.1 61.5
-------------------------------------------------- ---- ---- ----
Key GBPm GBPm
---------------------------------------------------- ---- ----- -----
Loss for the year (6.8) (4.4)
Profit from discontinued operations, net of tax E - (0.6)
---------------------------------------------------- ---- ----- -----
Continuing loss for the year attributable to equity
shareholders C (6.8) (5.0)
Total non-recurring or special items net of tax 2.1 1.9
---------------------------------------------------------- ----- -----
Loss for adjusted EPS D (4.7) (3.1)
---------------------------------------------------- ---- ----- -----
Key 2022 2021
-------------------------------------------------- ---- ------- ------
EPS measures
Basic and diluted([) *(]) continuing EPS C/A (10.0)p (8.3)p
-------------------------------------------------- ---- ------- ------
Adjusted EPS measures
Adjusted basic and diluted([) *(]) continuing EPS D/A (7.0)p (5.2)p
-------------------------------------------------- ---- ------- ------
The adjusted EPS information is considered to provide a fairer
representation of the Group's trading performance.
Discontinued earnings per share
Key 2022 2021
-------------------- ------ ---- ----
EPS measures
Basic EPS (E)/A - 1.0p
Diluted EPS([) *(]) (E)/B - 1.0p
-------------------- ------ ---- ----
Total earnings per share for the year attributable to equity
shareholders
Key 2022 2021
-------------------- ---- ------- ------
EPS measures
Basic EPS (10.0)p (7.3)p
Diluted EPS([) *(]) (10.0)p (7.3)p
-------------------------- ------- ------
* In the current and prior year, the dilutive impact of employee
share options is ignored since there is no dilutive impact on
continuing operations EPS measures given the continuing loss for
the year.
7. Intangible assets
Acquired
Development Computer intangible
costs software assets Goodwill Total
GBPm GBPm GBPm GBPm GBPm
-------------------- ----------- --------- ----------- ---------- -----
Cost
At 1 February 2020 7.1 0.1 4.0 4.3 15.5
Additions - - - - -
Disposals (0.6) - - - (0.6)
-------------------- ----------- --------- ----------- ---------- -----
At 31 January 2021 6.5 0.1 4.0 4.3 14.9
Additions 1.5 0.7 - - 2.2
Businesses acquired - - 0.3 0.2 0.5
Disposals - - - - -
-------------------- ----------- --------- ----------- ---------- -----
At 31 January 2022 8.0 0.8 4.3 4.5 17.6
-------------------- ----------- --------- ----------- ---------- -----
Amortisation
At 1 February 2020 7.1 0.1 1.0 - 8.2
Charge for the year - - 1.3 - 1.3
Disposals (0.6) - - - (0.6)
-------------------- ----------- --------- ----------- ---------- -----
At 31 January 2021 6.5 0.1 2.3 - 8.9
Charge for the year - - 1.4 - 1.4
Disposals - - - - -
-------------------- ----------- --------- ----------- ---------- -----
At 31 January 2022 6.5 0.1 3.7 - 10.3
-------------------- ----------- --------- ----------- ---------- -----
Carrying amount
At 1 February 2020 - - 3.0 4.3 7.3
-------------------- ----------- --------- ----------- ---------- -----
At 31 January 2021 - - 1.7 4.3 6.0
-------------------- ----------- --------- ----------- ---------- -----
At 31 January 2022 1.5 0.7 0.6 4.5 7.3
-------------------- ----------- --------- ----------- ---------- -----
Acquired intangible assets are made up of the separately
identified intangibles acquired with the purchase of Next Control
Systems in May 2019 and those acquired with the purchase of Tutela
LLC in February 2021.
Impairment testing for goodwill
The Group identifies cash-generating units (CGUs) at the
operating company level, as this represents the lowest level at
which cash inflows are largely independent of other cash inflows.
Goodwill acquired in a business combination is allocated, at
acquisition, to the groups of CGUs that are expected to benefit
from that business combination.
Goodwill at 31 January 2021 all relates to the acquisition of
Checkit UK Limited in May 2019. Goodwill at 31 January 2022
includes the acquisition of Tutela LLC in February 2021. The CGUs
of Checkit UK Limited, Checkit Europe Limited and Tutela LLC are
all expected to benefit from these acquisitions and the cash flows
are grouped for the purpose of the impairment review.
Goodwill values have been tested for impairment by comparing
them against the "value in use" in perpetuity of the relevant CGU
group. The value in use calculations were based on projected cash
flows, derived from the latest forecasts prepared by management and
budgets approved by the Board, discounted at CGU specific, risk
adjusted, discount rates to calculate their net present value.
Key assumptions used in "value in use" calculations
The calculation of "value in use" is most sensitive to the CGU
specific operating and growth assumptions, that are reflected in
management forecasts for the five years to January 2027. CGU
specific operating assumptions are applicable to the forecasted
cash flows and relate to revenue forecasts and forecast operating
margins in each of the operating companies and are based on the
strategic plans for the Group. These assumptions include the
expected impact and recovery from COVID-19. Long-term growth rates
are capped at 1%.
The revenue growth rates used in the cash flow forecast are
based on management's expectations of the future opportunities for
the Checkit platform and the ability to upsell to existing
customers on a global basis, including the planned US expansion.
The forecasts include the costs associated with delivering the SAAS
platforms, which are directly linked to the forecast sales growth.
Given the stage of development of the business, the forecasts
assume significant growth in revenue based on targeted ARR growth
of 70% during the 5 year forecast period. A 20% reduction in the
terminal value growth does not result in any impairment at 31
January 2021.
Discount rates are based on estimations of the assumptions that
market participants operating in similar sectors would make, using
the Group's economic profile as a starting point and adjusting
appropriately. Sensitivity to the discount rate has been applied to
evaluate impairment testing using discount rates ranging from 10%
to 20%.
Based on the forecasts consistent with the strategic business
plan developed, no impairment sensitivity is identified.
8. Discontinued operations
During the prior year, the Group sold assets relating to its
Elektron Eye Technology business. Consequently, the business has
continued to be included as discontinued operations.
Total discontinued operations comprise:
2022 2021
GBPm GBPm
------------------------------------------------------------ ----- -----
Revenue 0.2 0.3
Cost of sales (0.2) (0.2)
------------------------------------------------------------ ----- -----
Gross profit - 0.1
------------------------------------------------------------ ----- -----
Operating expenses - -
------------------------------------------------------------ ----- -----
Profit before tax - 0.1
------------------------------------------------------------ ----- -----
Attributable tax - -
------------------------------------------------------------ ----- -----
Profit from discontinued operations before gain on disposal - 0.1
------------------------------------------------------------ ----- -----
Gain on disposal and loss on remeasurement - 0.5
------------------------------------------------------------ ----- -----
Attributable tax to gain - -
------------------------------------------------------------ ----- -----
Profit from discontinued operations attributable to equity
shareholders - 0.6
------------------------------------------------------------ ----- -----
Foreign currency reserve reclassification - -
------------------------------------------------------------ ----- -----
Other comprehensive income from discontinued operations - -
------------------------------------------------------------ ----- -----
Elektron Eye Technology
The results of the Elektron Eye Technology discontinued
operation, which have been included in the consolidated statement
of comprehensive income, were as follows:
2022 2021
GBPm GBPm
----------------------------------------------------------- ----- -----
Revenue 0.2 0.3
Cost of sales (0.2) (0.2)
----------------------------------------------------------- ----- -----
Gross profit - 0.1
----------------------------------------------------------- ----- -----
Operating expenses - -
----------------------------------------------------------- ----- -----
Profit before tax - 0.1
Attributable tax - -
----------------------------------------------------------- ----- -----
Profit from Elektron Eye Technology - 0.6
Gain on Sale and loss on remeasurement to fair value - 0.5
----------------------------------------------------------- ----- -----
Profit from Elektron Eye Technology discontinued operation
attributable to equity shareholders - 0.6
----------------------------------------------------------- ----- -----
Cash flows from Elektron Eye Technology
2022 2021
GBPm GBPm
----------------------------------------------------------- ----- -----
Net cash inflow from operating activities - 0.1
----------------------------------------------------------- ----- -----
Net cash inflow / (outflow) from investing activities
Cash received on sale of assets 0.4 0.3
Expenditure on intangible assets - -
----------------------------------------------------------- ----- -----
Total net cash inflow/ (outflow) from investing activities 0.4 0.3
----------------------------------------------------------- ----- -----
Interest payable - -
----------------------------------------------------------- ----- -----
Total net cash outflow from financing activities - -
----------------------------------------------------------- ----- -----
On 1 July 2020 and 13 January 2021, the Group disposed of assets
relating to its Elektron Eye Technology business for a total net
proceeds of GBP0.9m, with GBP0.2m payable as deferred consideration
at the end of the year.
The gain on disposal in FY21 is summarised as follows:
GBPm
----------------------- ----
Intangible assets 0.4
Total assets sold 0.4
Gain on Disposal 0.5
----------------------- ----
Total Consideration 0.9
----------------------- ----
Satisfied by:
Deferred Consideration 0.9
Total Consideration 0.9
----------------------- ----
9. Businesses acquired - Tutela Monitoring Systems LLC
On 4 February 2021, the Group acquired 100% of the equity of
Tutela Monitoring Systems LLC ("Tutela"), a US-based business.
Tutela was previously owned by Next Control Systems Limited (now
Checkit UK Limited, a subsidiary of the Group), before Next Control
Systems Limited was acquired by the Group in May 2019. It was sold
to the US management team of Tutela in August 2018.
Tutela, which is based in Florida, provides wireless temperature
monitoring systems for all applications and facilities which store
sensitive inventory for businesses within the healthcare sector.
The Group intends to utilise Tutela as a platform to pursue all
industries and verticals targeted by Checkit.
The acquisition serves to accelerate the Group's US expansion
plans, providing a footprint and an opportunity to add further
scale. The Directors believe that, based on relative population
sizes, the US represents an addressable market around five times
larger than the UK, and therefore believe the acquisition
represents a significant milestone in its growth strategy.
The details of the business combination are as follows:
Fair value of consideration transferred GBPm
Amount settled in cash 0.6
------------------------------------------- ------
Deferred consideration outstanding
from 2018 sale 0.1
------------------------------------------- ------
Recognised amounts of identifiable
net assets
Other Intangibles 0.3
------------------------------------------ ------
Total non-current assets 0.3
------------------------------------------- ------
Inventories 0.1
Trade and other receivables 0.1
Cash and cash equivalents 0.2
Total current assets 0.4
------------------------------------------ ------
Trade and other payables (0.2)
Total current liabilities (0.2)
------------------------------------------- ------
Total non-current liabilities -
------------------------------------------- ------
Identifiable net assets 0.5
-------------------------------------------
Goodwill on acquisition 0.2
------------------------------------------- ------
Consideration settled in cash 0.6
Cash and cash equivalents acquired 0.2
------------------------------------------- ------
Net cash outflow on acquisition 0.4
------------------------------------------- ------
Consideration transferred
The acquisition of Tutela was settled in cash amounting to
GBP0.6m. Acquisition related costs amounting to GBP0.1m were
expensed and treated as a non-recurring item. Deferred
consideration of GBP0.1m outstanding from the 2018 sale was
discharged on acquisition.
Identifiable net assets
The fair value of the trade and other receivables acquired as
part of the business combination amounted to GBP0.2m, with a gross
contractual amount also being GBP0.2m. As of the acquisition date,
the Group expected to collect the full balance of the contractual
cashflow.
Separable intangible assets
Two separable intangible assets were identified at acquisition,
being the sole distributorship agreement and the acquired customer
list.
The sole distributorship agreement represents a re-acquired
asset from the 2018 sale, for which a price of $300K was paid at
the time. The asset has been valued on the basis of the remaining
term of the agreement. The useful life has been set as 1.9
years.
The acquired customer list was valued by assessing a discounted
cashflow based on expected customer attrition rates and using a
discount factor of 28.8%. The useful life has been estimated at 3
years.
Goodwill
Goodwill is primarily related to the core growth expectations,
expected future profitability and expected business synergies.
Goodwill has been allocated to the Checkit segment and is not
expected to be deductible for tax purposes.
Tutela's contribution to the Group results
Tutela US LLC generated a loss of GBP0.2m for the period from 4
February 2021 to the reporting date. Revenue for the period to 31
January 2022 was GBP1.6m.
In its financial year ending 31 December 2020, Tutela's sales
were approximately $2m (GBP1.46m) with profit before tax of $0.27m
(GBP0.20m) and net assets (including cash) amounting to $0.16m
(GBP0.12m). If the businesses had been consolidated during that
period, approximately GBP1 million would have been added to Group
sales per annum after eliminating intercompany sales on
consolidation.
10. Non-GAAP performance measures
A reconciliation of non-GAAP performance measures to reported
results is set out below:
Profit measures - LBITDA - continuing operations
2022 2021
GBPm GBPm
---------------------------------------------------------- ----- -----
LBITDA (4.2) (2.5)
Depreciation and amortisation (0.5) (0.6)
---------------------------------------------------------- ----- -----
Reported operating loss for the year before non-recurring
and special items (4.7) (3.1)
---------------------------------------------------------- ----- -----
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR IRMMTMTBTTRT
(END) Dow Jones Newswires
April 28, 2022 02:01 ET (06:01 GMT)
Checkit (LSE:CKT)
Historical Stock Chart
From Apr 2024 to May 2024
Checkit (LSE:CKT)
Historical Stock Chart
From May 2023 to May 2024