Checkit (AIM:CKT), the AIM-listed provider of an intelligent operations platform for temperature monitoring and compliance in frontline workplaces, reported adjusted EBITDA from continuing operations of £0.3m for the six months to 31 July, reversing a £0.9m loss in the same period last year.
Revenue from continuing operations rose 3% to £6.3m, with recurring revenue up 4% to £6.1m and now representing 97% of the total.
Annual recurring revenue from continuing operations increased 5% on a constant currency basis to £12.8m, with new bookings rising to £0.7m and churn falling to £0.5m.
Cash generated from continuing operating activities was £0.3m, against a £2.3m outflow a year earlier, leaving cash of £2.9m at period end, roughly flat against £3m at the start of the financial year.
The company retired a legacy product tied to a single customer, removing £1.6m of ARR and roughly £0.7m of annualised cost, but freeing resources to concentrate on a single cloud platform.
Checkit also confirmed today the termination of the formal sale process launched on 26 March, which had drawn several non-binding proposals but none the board considered recommendable above its 30p-per-share threshold.
"We have moved from funding significant new product development programmes to an EBITDA-profitable business with 97% recurring revenue and a materially lower cost base," said chief executive Kit Kyte, adding that the process "provided valuable external validation of the strength of our technology, customer proposition and position in regulated environments."
The board has adopted a two-year value-creation framework targeting net revenue retention of 105-110% and gross revenue retention above 95%, against current levels of 102% and 94% respectively.
Checkit's principal product priority for the rest of the financial year is its Next-Generation Medical Monitoring platform, with core functionality targeted for completion by the end of October.