CKT Checkit

Checkit (CKT): Initiation - Smarter operations management

Edison Investment Research Limited
Checkit (CKT): Initiation - Smarter operations management

02-Dec-2020 / 07:00 GMT/BST

 

London, UK, 1 December 2020

Checkit (CKT): Initiation - Smarter operations management

Checkit has emerged from a period of corporate activity as a pure-play business focused on driving the adoption of its connected SaaS software, in particular its workflow management application. Checkit's software is designed to enable smarter operations management, exploiting Internet of Things technology to connect people, processes and assets. With a proven ability to sign up blue-chip customers across a number of target verticals, growth in recurring revenues and an expanding customer base should help to close the valuation discount to software peers.

 

On an EV/sales multiple of 1.4x in FY21e, Checkit trades at a significant discount to the UK software sector (5.1x forward sales). On a sum-of-the-parts basis attributing EV/sales multiples that better reflect the performance and prospects for each division, we estimate that the stock is significantly undervalued. For example, using a 4x FY21e multiple for Checkit Connect and 1x for Checkit BEMS would result in a valuation of 72p per share. Key triggers to help Checkit attract a higher multiple include evidence that customers are signing up to use Connect software, existing customers are expanding their usage and, to a lesser extent, that non-recurring revenues are being converted to subscription services. 

 

to view the full report.

 

to Edison's content to receive reports by email.

All reports published by Edison are free-to-access and available on the .

 

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Katherine Thompson, +44 (0)20 3077 5730

 

 

 

 

 

Learn more at and connect with Edison on: 

LinkedIn       

Twitter          

YouTube      


Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
End of Announcement - EQS News Service

1151886  02-Dec-2020 

fncls.ssp?fn=show_t_gif&application_id=1151886&application_name=news&site_id=research_pool
EN
02/12/2020

Underlying

CKTCheckit

To request access to management, click here to engage with our
partner Phoenix-IR's CorporateAccessNetwork.com

Reports on Checkit

 PRESS RELEASE
Free
CKT CHECKIT

Form 8.3 - Checkit PLC

Apex Fundrock Limited (MISL) Form 8.3 - Checkit PLC 11-Feb-2025 / 10:51 GMT/BST FORM 8.3   PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the “Code”)   1. KEY INFORMATION   (a) Full name of discloser: Chelverton Asset Management (b) Owner or controller of interests and short positions disclosed, if different from 1(a):  The naming of nominee or vehicle companies is insufficient.  For a trust, the trustee(s), settlor and beneficiaries ...

February 11, 2025 1 EN
Richard Williamson
  • Richard Williamson
CKT CHECKIT

Checkit - Contract expansions drive order intake

In H125, Checkit reported year-on-year growth in annual recurring revenue (ARR) of 9%, with strong order intake partially offset by higher churn. Existing customers contributed more than half of ARR growth, evidence of the land and expand strategy at work. The company maintains its short- and medium-term outlook, including its target to reach EBITDA break-even in FY27, with the narrowing H125 EBITDA loss confirming progress towards this. We maintain our ARR, revenue and EBITDA forecasts and redu...

09/12/24 September 12, 2024 1 EN
Richard Williamson
  • Richard Williamson
CKT CHECKIT

Checkit - No intention to bid for Crimson Tide

On 26 June, Checkit announced that it did not intend to make a formal bid for Crimson Tide. Since Checkit’s original and revised all-equity proposals, another bidder, Ideagen, has expressed an intention to make an all-cash bid at a significantly higher price. Checkit will now refocus on organic growth and working towards profitability. Separately, an input VAT dispute with HMRC has concluded in Checkit’s favour, removing the related contingent liability.

06/27/24 June 27, 2024 1 EN
 PRESS RELEASE
Free
CKT CHECKIT

Form 8.3 - Apex Fundrock Limited : Form 8.3 - OPD - Checkit PLC

Apex Fundrock Limited (MISL) Form 8.3 - Apex Fundrock Limited : Form 8.3 - OPD - Checkit PLC 10-Jun-2024 / 12:43 GMT/BST FORM 8.3   PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the “Code”)   1. KEY INFORMATION   (a) Full name of discloser: Chelverton Asset Management (b) Owner or controller of interests and short positions disclosed, if different from 1(a):  The naming of nominee or vehicle companies is insufficient.  For a trust, t...

June 10, 2024 1 EN
Richard Williamson
  • Richard Williamson
CKT CHECKIT

Checkit - Potential bid for Crimson Tide

Checkit has announced a formal approach to the board of Crimson Tide, an AIM-listed provider of workflow management software, regarding a possible all-share offer for the company at a value of £12m. The Checkit board has attempted to engage the Crimson Tide board in constructive discussions several times over the last four years but discussions have never progressed. The company is announcing the terms of a possible offer to facilitate direct discussions with the shareholders of both companies b...

06/05/24 June 5, 2024 1 EN

ResearchPool Subscriptions

Get the most out of your insights

Get in touch