Listed Checkit has delivered improved half-year revenues despite making a raft of redundancies.
Checkit, an augmented workflow and smart sensor automation company for frontline workers, reported a significant improvement in financial performance in H1 while it said its pipeline is at an all-time high.
In April we reported that the firm was to make redundancies following the collapse of its bid to acquire fellow PLC Crimson Tide following a long-running all-share takeover saga.
The required majority of shareholders in Checkit PLC did not back the deal, with 51% voting in favour and 49% against.
Following the news, Checkit, conducted a review of its operations and cost base. It settled upon a restructuring which resulted in a reduced number of roles across various departments.
The planned £3m of cost savings were completed in June. Checkit said this has delivered material progress towards profitability, with a 65% improvement in adjusted LBITDA (losses before interest, taxes, depreciation and amortisation) to £500,000 for the six months ended 31st July 2025 (£1.4m in H1 FY25).
Annual recurring revenue for the period increased by 3% on a constant currency basis to £14m, while recurring revenue grew by 6% to £6.6m and total revenue increased by 3% to £6.9m.
Checkit said that two large US customers have renewed on new three-year terms – with a combined total contract value of £5m – and that it expects full-year results to be in line with market expectations.
The firm’s share price (13.90 pence) is down 23% in the year to date and 41% down over 12 months.
“Despite challenging market conditions, Checkit has delivered a solid operational and financial performance,” said CEO Kit Kyte (pictured). “We have taken difficult but necessary actions to strengthen the foundations of the business, and now our focus is on accelerating growth.
“Encouraging pipeline momentum, coupled with a sharpened sales process, increasingly gives us confidence in the future.”