Checkit ends sale process as continuing operations reach adjusted EBITDA profit

Checkit ($CKT) ended its formal sale process after receiving no offer its board could recommend, while reporting a return to adjusted EBITDA profitability in continuing operations. For the six months ended July, adjusted EBITDA improved to a £0.3 million profit from a £0.9 million loss. Revenue increased 3% to £6.3 million, with recurring sales contributing 97% of the total.

Continuing annual recurring revenue reached £12.8 million, up 5% at constant currency. The retirement of a legacy product serving one customer removed £1.6 million of ARR and approximately £0.7 million of annual costs. Cash stood at £2.9 million, compared with £3.0 million at the previous year-end. The figures show progress from cost reductions, but adjusted EBITDA profitability should not be confused with a statutory net profit or an agreed takeover.

Sources:

• Checkit RNS, via London South East