Checkit plc (CKT) AI Stock Analysis

• Market Cap: £17.28M
• Dividend Yield: N/A
• Average Volume (3M): 109.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 17.50%
• EPS Growth: 20.14%
• Country: UK
• Employees: 161
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): -0.03
• Shares Outstanding: 108,008,560
• 10 Day Avg. Volume: 153,314
• 30 Day Avg. Volume: 109,156
• PEG Ratio: -0.21
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: 16.50p ▲(3.13%Upside)

Checkit plc's score is primarily influenced by its financial challenges and valuation concerns, partially offset by positive technical indicators and strategic corporate actions. The CEO's stake increase and strategic growth plans provide a positive outlook, balancing out the negative impact of the failed merger and profitability issues.

Checkit plc Business Overview & Revenue Model

Company Description

Checkit plc provides cloud-based services through intelligent operations management platforms for deskless workforces in the United Kingdom and the Americas. The company offers software-as-a-service for connected workflow management, automated monitoring and building energy management, Internet of things, and operational insight-based products and services. It also provides web-based services for work management and automated monitoring. The company was formerly known as Elektron Technology plc and changed its name to Checkit plc in October 2019. Checkit plc was incorporated in 1948 and is headquartered in Cambridge, the United Kingdom.

How the Company Makes Money

Checkit 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. It maintains a stable balance sheet with low leverage, though negative cash flows and declining equity ratios are concerns.

Income Statement

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

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

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.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
14.10M	12.00M	10.30M	8.40M	13.20M
	Gross Profit
8.30M	8.00M	5.00M	2.70M	4.70M
	EBIT
-3.90M	-5.10M	-8.10M	-7.50M	-4.40M
	EBITDA
-2.90M	-3.20M	-7.00M	-6.60M	-3.40M
	Net Income Common Stockholders
-3.60M	-4.50M	-12.30M	-6.80M	-4.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.10M	9.00M	15.60M	24.20M	11.50M
	Total Assets
19.90M	23.10M	27.40M	37.30M	24.30M
	Total Debt
600.00K	500.00K	600.00K	700.00K	500.00K
	Net Debt
-4.50M	-8.50M	-15.00M	-23.50M	-11.00M
	Total Liabilities
8.80M	8.50M	8.50M	6.30M	6.70M
	Stockholders Equity
11.10M	14.60M	18.90M	31.00M	17.60M
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	-2.30M	82.70M
	Financing Cash Flow
-200.00K	-300.00K	-300.00K	19.90M	100.00K

Checkit plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CKT, the sentiment is Neutral. The current price of 16 is above the 20-day moving average (MA) of 15.25, above the 50-day MA of 14.08, and below the 200-day MA of 17.23, indicating a neutral trend. The MACD of 0.66 indicates Negative momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 46.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CKT.

Checkit plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARC	77 Outperform	£11.37M	10.86	13.09%	4.41%	5.35%	-8.63%
ALT	75 Outperform	£15.02M	21.72	6.94%	―	15.82%	37.50%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
CRDL	58 Neutral	£15.46M	―	-26.44%	―	17.06%	-78.26%
CKT	55 Neutral	£17.28M	―	-28.02%	―	17.50%	20.14%
BIRD	49 Neutral	£17.42M	―	-28.72%	―	-17.02%	10.29%
PEN	46 Neutral	£13.06M	―	-28.36%	―	-11.33%	-139.92%

Checkit plc Corporate Events

Checkit plc AGM Resolutions Passed Amid Shareholder Dissent on Share Allotment

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.

Checkit plc Releases Annual Report and AGM Notice

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.

Checkit CEO Increases Stake in Company

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.

Checkit plc Reports Strong FY25 Results Amid Strategic Shift

Checkit plc reported a strong performance for the fiscal year ending January 31, 2025, with a 17% increase in total revenue and significant improvements in cash consumption and profitability metrics. Despite challenging market conditions, the company is focusing on profitability and cash generation through cost reduction and strategic initiatives. The launch of new AI-driven product features and a strategic focus on the US market are expected to drive future growth, although near-term revenue growth is projected to be modest due to economic uncertainties.

Checkit plc to Announce Year-End Results with Investor Presentation

Checkit plc has announced it will release its final results for the year ending January 31, 2025, on April 24, 2025. The announcement will be accompanied by a live investor presentation led by CEO Kit Kyte and CFO Kris Shaw, offering stakeholders insights into the company’s performance and strategic direction.

Checkit plc Unveils Strategic Plan for Profitability and Growth

Checkit plc has announced a strategic plan aimed at improving operational efficiency and accelerating profitability in response to economic uncertainties in the US and UK. The plan includes a staff productivity program and non-staff efficiency measures expected to save £3 million annually, with a one-off cost of £0.4 million. The company is also focusing on growth strategies, particularly in the US, and has launched a new ML/AI data module, Asset Intelligence, to optimize asset availability and reduce costs. The board remains confident in the company’s strategic direction, emphasizing strong revenue retention and cost reduction initiatives to enhance financial resilience.

Checkit Merger with Crimson Tide Falls Through

Checkit PLC announced that its shareholders approved the allotment of new ordinary shares for a proposed merger with Crimson Tide. However, the merger will not proceed as Crimson Tide shareholders did not approve the scheme, resulting in the lapse of the offer. Consequently, Checkit is restricted from making another offer for Crimson Tide for 12 months, unless consent is granted by the regulatory panel. This development impacts Checkit’s strategic plans and may influence its market positioning as it navigates the restrictions.