Checkit announces restructuring in bid to accelerate profitability
By Josh White
Date: Tuesday 08 Apr 2025
(Sharecast News) - Checkit announced a strategic restructuring programme on Tuesday, aimed at delivering annualised cash savings of around £3m as it moved to accelerate profitability and strengthen its position in the face of economic uncertainty in its core markets.
The AIM-traded monitoring technology specialist said the cost-saving measures followed a comprehensive review of its operations and cost base in response to pressures including rising UK National Insurance contributions and new US trade tariffs.
It said its plan included a staff productivity programme, which would reduce headcount across several departments following consultation, alongside a range of non-staff cost reductions such as lower discretionary spending and streamlined supplier contracts.
The changes were expected to result in a one-off exceptional cash charge of about £0.4m this year, with full annualised savings expected to be realised in the next financial year.
Checkit said it anticipated the programme would bring forward the point at which it becomes cash generative.
The company also reiterated its long-term growth ambitions, with its 2026 financial year strategy now informed by a full-scale internal review.
It said the US remained its primary growth market, accounting for 23% of new bookings in the 2025 period.
While US trade tariffs had introduced macroeconomic uncertainty, Checkit said it did not expect them to materially affect its revenue or cost base.
The company said it was continuing to emphasise strong commercial discipline, underpinned by robust customer retention metrics.
It said its three-year average net revenue retention stood at 111%, with gross revenue retention at 97%.
Management highlighted the successful launch of Asset Intelligence, a machine learning and AI-driven data module designed to enhance asset availability and support cost optimisation, as a key differentiator and a driver of future high-margin growth.
Checkit said it remained confident in its strategic direction, citing a high-quality recurring revenue base, resilient customer metrics and its ongoing transformation programme as the foundation for building a profitable and cash-generative business.
"We are refining Checkit's operating model to improve efficiency, to enhance performance, and to accelerate our transition to profitability," said chief executive officer Kit Kyte.
"By streamlining costs and focusing resources on key areas, we are strengthening the business for long-term success.
"Our commitment to delivering value to customers and shareholders remains our priority."
Kyte said the company would announce its preliminary results on 24 April.
Reporting by Josh White for Sharecast.com.
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