Checkit shares rise on new machine learning product and contract wins
Intelligent operations platform provider () issued a market update, detailing a new product launch and further contract wins in the UK.
Checkit announced the launch of Asset Intelligence, a new product module that applies advanced analytics and machine learning to IoT data. The product aims to reduce costs, boost revenue, and enhance sustainability for Checkit's customers. said pre-launch trials had demonstrated a positive impact on energy consumption, asset lifecycle costs, and operational efficiency. The module is being promoted as an additional chargeable service to Checkit's existing customer base.
Checkit also announced contract wins in the UK from two existing customers worth at least £417k in total lifetime revenue over their 3-year terms. The two clients are an integrated energy company and a multinational outsourced food service group.
Kit Kyte, CEO of Checkit, commenting: "The release of Asset Intelligence marks an exciting chapter in the evolution of our product offering and our integrated end-to-end platform. We expect Asset Intelligence to provide a strong catalyst for future software growth. Asset Intelligence demonstrates the power of Machine Learning on the proprietary data sets provided by our platform and sensor ecosystem, to deliver meaningful savings and sustainability benefits to our customers.
The contracts won represent a positive start to FY25 and demonstrate the success of our 'land and expand' strategy. They have potential to be replicated globally."
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More positive news from Checkit, sending shares 4.5% higher on Monday. The Asset Intelligence module is a powerful machine learning tool that analyses the condition of monitored appliances to predict issues before they escalate. In financial terms, the product identifies operational inefficiencies, aiming to boost visibility of asset performance. said its existing customers should expect at least a 50% improvement in ROI of its IoT sensors, as well as substantial reductions in CO2.
Separately, the new contracts carry the momentum of Checkit's orderbook growth from last year. The energy contract will provide real-time operations management to 50 franchises in the UK worth £252k over 3 years, to be installed in tranches over FY25. The order holds significant upside as the franchise operations for the customer are double the size of its owned locations globally, presenting potential for significant contract expansion in FY25.
The second win is a set of contracts worth a minimum £165k over 3 years for the provision of Checkit's CAM and CWM products to end users in 4 new locations. The contracts follow from 3 previous deals signed at the end of FY23, and add to a total of 5 new projects to 's pipeline with this customer.
Overall, the new contracts add significant visibility, and the new software asset is a power differentiator that should bolster 's recurring revenues in FY25 and beyond. In its most recent trading update, Checkit announced annual recurring revenue growth of 16% to £13.3m, in line with expectations, while total revenue increased by 17% to £12.0m and losses halved, showing substantial progress toward profitability.
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