COVID-19 Update and Change to Results Date, Checkit PLC, 2020-05-26
(“Checkit” or the “Group”)
COVID-19 Update and change to Preliminary Results announcement date
Checkit plc (AIM:CKT) had intended to announce its Preliminary Results for the year ended 31 January 2020 on 28 May 2020. However, owing to the impact of the Covid-19 lockdown on the finalisation of the audit, Checkit has decided to defer the publication of these results to 16 June 2020.
The Board intends to take a robust approach in its impairment testing of the Group’s intangible assets at the balance sheet date of 31 January 2020. Because of the impossibility of predicting future cash flows from such assets in the present circumstances, significant write-downs are expected.
The Group provides the following update on trading:
to 30 April 2020 actual
to 30 April 2019 normalised*
Checkit UK (formerly Next Control Systems)
*Normalised sales illustrate sales that would have been included in the Group’s financial results had Checkit UK Limited, which was acquired on 14 May 2019, been owned by the Group throughout both periods.
The Covid-19 situation continues to evolve but remains highly uncertain. As indicated in its previous update on 14 April 2020, the Board is continuing to rely on its recurring revenue as its base case for planning. Further details are given in that announcement.
There are early signs of customer plans to resume installation projects in Checkit UK for building management systems but both timing and quantum remain difficult to determine. Healthcare opportunities remain strong and the Connected Workflow Management solution is seeing increased interest as a result of new product features.
As indicated in the April update the Board continues to furlough several employees and has extended its Pay Reduction scheme for employees who continue to work, through to the end of June. Board members continue to participate in the scheme. The Board remains extremely grateful to its employees for their continued support during the current crisis.
The Group continues to monitor its cash position closely and has taken steps to reduce discretionary spend wherever possible. Cash at 30 April was £12.8m (31 January: £14.3m; 31 March: £13.1m).
The Board will make further announcements as and when appropriate.
Forward looking statements
This document contains forward looking statements with respect to the business, strategy and plans of Checkit plc and its current goals and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about Checkit or management’s beliefs and expectations, are forward looking statements. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Checkit’s actual future results may differ materially from the results expressed or implied in these forward looking statements as a result of a variety of factors among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. The forward looking statements contained in this document are made as of the date hereof, and Checkit undertakes no obligation to update any of its forward looking statements
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Keith Daley (Executive Chairman)
Andrew Weatherstone (Chief Financial Officer)
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Shaun Dobson / George Tzimas (Corporate Finance)
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