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Checkit Plc (GB:CKT)
:CKT
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Checkit plc (CKT) AI Stock Analysis

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GB:CKT

Checkit plc

(LSE:CKT)

Rating:46Neutral
Price Target:
14.50p
▼(-3.33%Downside)
Checkit plc's stock is challenged by negative profitability and cash flow, which significantly affects its financial performance score. Technical indicators suggest limited momentum, and the valuation is unattractive due to a negative P/E ratio. The CEO's stake increase is a positive sign but is not enough to substantially uplift the overall score.

Checkit plc (CKT) vs. iShares MSCI United Kingdom ETF (EWC)

Checkit plc Business Overview & Revenue Model

Company DescriptionCheckit plc is a technology company that operates in the digital workplace management sector. The company provides a range of software and services designed to optimize the performance of frontline workers and operations in sectors such as healthcare, retail, and facilities management. Checkit's core products include digital workflow management tools that help organizations monitor, manage, and improve the efficiency and compliance of their operations.
How the Company Makes MoneyCheckit plc makes money through a combination of software-as-a-service (SaaS) subscriptions, professional services, and hardware sales. The company's primary revenue stream is its SaaS model, where customers pay recurring fees to access Checkit's digital workflow management platform. In addition to subscription fees, Checkit generates revenue from professional services, which include implementation, training, and consulting services to help clients integrate and optimize the use of its solutions. The company also sells specialized hardware that complements its software solutions, such as sensors and monitoring devices that enhance data collection and operational oversight. Strategic partnerships with organizations in targeted industries further contribute to Checkit's revenue by expanding its customer base and enhancing its product offerings.

Checkit plc Financial Statement Overview

Summary
Checkit plc shows positive revenue growth but faces challenges with profitability and cash flow. The balance sheet is stable with low leverage, but declining equity ratios and negative cash flows are concerns.
Income Statement
50
Neutral
Checkit plc has demonstrated some growth in total revenue, increasing from £8.4 million in 2022 to £14.1 million in 2025, indicating a positive trajectory. However, the company is facing substantial challenges with profitability, as evidenced by persistent negative EBIT and net income over the years. The gross profit margin has improved, but the negative net profit margin reveals ongoing losses, which is a concern for financial health.
Balance Sheet
60
Neutral
The company maintains a relatively healthy balance sheet with a low debt-to-equity ratio, reflecting conservative leverage. Stockholders' equity has decreased over time, but it remains positive, which is a good indicator of financial stability. The equity ratio has been declining, suggesting a reduction in asset backing by equity, which could be a potential risk if the trend continues.
Cash Flow
45
Neutral
Checkit plc's cash flow situation highlights significant challenges, with negative operating cash flow and free cash flow in recent years. This indicates that the company struggles to generate sufficient cash from its core operations. Although there has been some improvement in free cash flow from 2024 to 2025, the overall cash flow remains negative, posing a risk to liquidity and financial flexibility.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue14.10M12.00M10.30M8.40M13.20M
Gross Profit8.30M8.00M5.00M2.70M4.70M
EBITDA-2.90M-3.20M-7.00M-6.60M-3.40M
Net Income-3.60M-4.50M-12.30M-6.80M-4.90M
Balance Sheet
Total Assets19.90M23.10M27.40M37.30M24.30M
Cash, Cash Equivalents and Short-Term Investments5.10M9.00M15.60M24.20M11.50M
Total Debt600.00K500.00K600.00K700.00K500.00K
Total Liabilities8.80M8.50M8.50M6.30M6.70M
Stockholders Equity11.10M14.60M18.90M31.00M17.60M
Cash Flow
Free Cash Flow-1.30M-6.80M-6.70M-5.70M-3.20M
Operating Cash Flow-1.10M-4.70M-6.30M-4.90M-2.90M
Investing Cash Flow-2.60M-1.60M-2.00M-2.30M82.70M
Financing Cash Flow-200.00K-300.00K-300.00K19.90M100.00K

Checkit plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.00
Price Trends
50DMA
15.26
Positive
100DMA
14.40
Positive
200DMA
16.32
Negative
Market Momentum
MACD
0.10
Positive
RSI
54.07
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CKT, the sentiment is Positive. The current price of 15 is below the 20-day moving average (MA) of 15.45, below the 50-day MA of 15.26, and below the 200-day MA of 16.32, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.07 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CKT.

Checkit plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£14.73M20.406.94%15.82%37.50%
73
Outperform
£11.97M11.4313.09%418.99%5.35%-8.63%
63
Neutral
£505.90M23.92-8.45%170.41%4.53%-18.72%
52
Neutral
£14.37M-26.44%17.06%-78.26%
50
Neutral
£13.40M-28.36%-11.33%-139.92%
49
Neutral
£11.71M-28.72%-17.02%10.29%
46
Neutral
£16.20M-28.02%17.50%20.14%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CKT
Checkit plc
15.00
-11.00
-42.31%
GB:ALT
Altitude
20.80
-24.20
-53.78%
GB:PEN
Pennant International
31.00
7.00
29.17%
GB:ARC
Arcontech
89.50
-6.00
-6.28%
GB:BIRD
Blackbird PLC
2.75
-5.00
-64.52%
GB:CRDL
Cordel Group PLC
6.62
1.80
37.34%

Checkit plc Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Checkit plc Awards Share Options to CFO
Neutral
Jun 19, 2025

Checkit plc has granted 833,333 share options to Kris Shaw, the Chief Financial Officer, under its EMI Options Scheme. These options, exercisable at 15 pence per share, are contingent upon the company achieving or maintaining an EBITDA breakeven status, reflecting a strategic move to align executive incentives with financial performance goals.

Shareholder Meetings
Checkit plc AGM Resolutions Passed Amid Shareholder Dissent on Share Allotment
Neutral
Jun 5, 2025

Checkit plc announced that all resolutions at its Annual General Meeting were passed, including the re-election of directors and the re-appointment of auditors. However, more than 20% of votes opposed the resolution to authorize directors to allot shares, prompting the board to engage with significant shareholders to understand their concerns.

Shareholder MeetingsFinancial Disclosures
Checkit plc Releases Annual Report and AGM Notice
Neutral
May 29, 2025

Checkit plc has announced the posting of its Annual Report for the fiscal year ending January 31, 2025, along with the Notice of its Annual General Meeting (AGM) to shareholders. The AGM is scheduled for June 5, 2025, in London, and shareholders are advised to submit proxy votes by June 3, 2025. This announcement underscores Checkit’s commitment to transparency and shareholder engagement, potentially impacting its market positioning and stakeholder relations.

Other
Checkit CEO Increases Stake in Company
Positive
May 22, 2025

Checkit plc announced that its CEO, Kit Kyte, has purchased 497,925 ordinary shares, increasing his total beneficial interest to 665,797 shares, representing 0.62% of the company’s total issued share capital. This transaction, conducted on the London Stock Exchange, underscores the CEO’s confidence in the company’s future prospects and may positively influence stakeholder sentiment.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025