Checkit PLC saw a boost in its shares following the announcement that it is confident in exceeding market expectations for its fiscal performance in 2024. The digital-solutions provider to the deskless worker industry is optimistic about delivering strong results, reporting a narrowed pretax loss for the first half.
Share Rise and Performance Outlook
As of 0741 GMT, Checkit PLC shares witnessed a significant increase of 3.0 pence, or 11%, reaching 30.0 pence. The company anticipates surpassing market consensus range estimates for adjusted loss before interest, taxes, depreciation, and amortization (EBITDA) for the year ending Jan. 31. The projected range is between £3.7 million and £3.8 million ($4.6 million and $4.7 million), excluding exceptional and one-off items.
Positive Business Outlook
Checkit PLC remains highly optimistic about its prospects. The company’s land and expand strategy is bolstered by strong net revenue retention rates and ongoing contract momentum. These factors contribute to a positive outlook for the business.
Narrowed Losses in H1
For the first half of the year ended July 31, Checkit PLC reported a pretax loss of £2.5 million, a significant improvement compared to the loss of £4.5 million incurred during the same period last year. The company recorded increased revenue of £5.7 million, supported by subscription services and a notable 24% growth in annual recurring revenue.
Furthermore, the adjusted EBITDA loss narrowed to £1.9 million from the previous year’s loss of £3.5 million. Checkit PLC successfully managed inflationary pressures through strategic pricing adjustments and extending customer terms.
Note: Contact details and subscription appeals have been removed for conciseness.
Written by Michael Susin
