Half Year 2027 Checkit PLC Earnings Call

September 29, 2026

Speaker #1: Questions are encouraged and could be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send.

Speaker #1: The calm you may not be in a position to answer every question it receives during the meeting itself; however, the company can review all questions submitted today and publish responses where it's appropriate to do so.

Speaker #1: Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Kit Kyte, CEO. Good afternoon, sir.

Speaker #2: Good afternoon, and thank you, everyone, for joining us. Today's results mark an important point in Checkit's development. We've moved from a period of substantial investment and restructuring into a profitable, more focused business.

Speaker #2: The formal sale process has concluded, it provided extensive external validation of our technology, customer base, and recurring revenue model, and although it did not produce an offer at which the value that the board felt it could recommend, our focus is now moved firmly onto independent execution, and demonstrating the greater value that we believe exists within Checkit.

Speaker #2: So today, we will cover the stronger financial foundations established in H1, the simplification of the business, and our 2-year framework for profitable growth. I'm joined today also by Kris Shaw, who's our Chief Financial Officer.

Speaker #2: So I'll cover the business, product strategy, and outlook, and Kris will take you through the commercial model and the financial results. The central result is our return to adjusted EBITDA profitability.

Speaker #2: So continuing operations delivered 0.3 million pounds of adjusted EBITDA, representing a 1.2 million pound improvement on the prior year. We've achieved that alongside revenue growth, a higher recurring revenue mix, and an improved gross margin.

Speaker #2: So recurring revenue now represents 97% of total revenue, and ARR has increased by 5% to 12.8 million pounds. New bookings increased, and churn reduced significantly, giving us positive net commercial momentum.

Speaker #2: We also generated cash from continuing operating activities, 0.3 million pounds this year prior to compared to 2.3 million pound outflow last year. The withdrawal of the legacy product has removed a completely separate legacy technology estate, and approximately 0.7 million pounds of analyzed cost.

Kit Kyte: The EBITA profit. Continuing operations delivered GBP 0.3 million of adjusted EBITA, representing a GBP 1.2 million improvement on the prior year. We've achieved that alongside revenue growth, a higher recurring revenue mix, and an improved gross margin. Recurring revenue now represents 97% of total revenue, and ARR has increased by 5% to GBP 12.8 million. New bookings increased and churn reduced significantly, giving us positive net commercial momentum. We also generated cash from continuing operating activities, GBP 0.3 million this year compared to GBP 2.3 million outflow last year. The withdrawal of the legacy product has removed a completely separate legacy technology estate and approximately GBP 0.7 million of annualized costs. Today, Checkit now is a profitable, overwhelmingly recurring business, able to direct its resources towards one modern platform and a much narrower commercial strategy.

Speaker #1: That even are possible today. So, continuing operations delivered 0.3 million pounds of adjusted EBITDA, representing a 1.2 million pound improvement on the prior year.

Speaker #1: We've achieved that alongside revenue growth, a higher recurring revenue mix, and an improved gross margin. Recurring revenue now represents 97% of total revenue, and ARR increased by 5% to £12.8 million.

Speaker #2: So today, Checkit now is a profitable, overwhelmingly recurring business, able to direct its resources towards one modern platform and a much narrower commercial strategy.

Speaker #1: New bookings increased, and churn reduced significantly, giving us positive net commercial momentum. We also generated cash from continuing operating activities—£0.3 million this year, compared to a £2.3 million outflow last year.

Speaker #2: So for those of you who are new to the business, and for those who've been with us for a while, I'll briefly re-explain what it is that we do or makes us different and unique in this space.

Speaker #1: The withdrawal of the legacy product has removed a completely separate legacy technology estate, and approximately 0.7 million pounds of analyzed cost. So today, checkit now is a profitable, overwhelmingly recurring business, able to direct its resources towards one modern platform and a much narrower commercial strategy.

Speaker #2: So Checkit connects the physical world of sensors with the people and the systems responsible for frontline operations. We monitor critical conditions continuously, when something changes, our software then guides the required action and preserves the evidence.

Speaker #2: We then use the combined sensor and the workflow data to give our customers operational insight. This matters most where a failure creates regulatory, financial, or patient safety consequences.

Speaker #1: So for those of you who are new to the business, and for those who've been with us for a while, I'll briefly re-explain what it is that we do or makes us different and unique in this space.

Kit Kyte: For those of you who are new to the business, and for those who've been with us for a while, I'll briefly re-explain what it is that we do, what makes us different and unique in this space. Checkit connects the physical world of sensors with the people and the systems responsible for frontline operations. We monitor critical conditions continuously. When something changes, our software then guides the required action and preserves the evidence. We then use the combined sensor and the workflow data to give our customers operational insight. This matters most where a failure creates regulatory, financial, or patient safety consequences. There are hardware-only providers that can record a condition. There are enterprise quality management systems that can manage documentation, but Checkit connects both the live sensor estate, the frontline response, and the compliance records.

Speaker #2: There are hardware-only providers that can record a condition, there are enterprise quality management systems that can manage documentation, but Checkit connects both the live sensor estate, the frontline response, and the compliance records.

Speaker #1: So, Checkit connects the physical world of sensors with the people and the systems responsible for frontline operations. We monitor critical conditions continuously, and when something changes, our software then guides the required action and preserves the evidence.

Speaker #2: We sit in between the two, and that's our point of differentiation. Once we're embedded in those daily operations, that combination becomes difficult to replace.

Speaker #1: We then use the combined sensor and the workflow data to give our customers operational insight. This matters most where a failure creates regulatory, financial, or patient safety consequences.

Speaker #2: So we now operate with two clear areas of focus: medical represents approximately 71% of our continuing revenue, and it's our principal growth engine. Our strongest positions are in the NHS, private hospitals, and US plasma.

Speaker #1: There are hardware-only providers that can record a condition, there are enterprise quality management systems that can manage documentation, but checkit connects both the live sensor estate, the frontline response, and the compliance records.

Speaker #2: With further opportunity in diagnostics, biotech, and cell and gene therapy. These customers value regulatory compliance, reliability, and a complete audit trail. Those requirements also support high-switching costs.

Speaker #1: We sit in between the two, and that's our point of differentiation. Once we're embedded in those daily operations, that combination becomes difficult to replace.

Kit Kyte: We sit in between the two, and that's our point of differentiation. Once we're embedded in those daily operations, that combination becomes difficult to replace. We now operate with two clear areas of focus. Medical represents approximately 71% of our continuing revenue, and it's our principal growth engine. Our strongest positions are in the NHS, private hospitals, and US plasma, with further opportunity in diagnostics, biotech, and cell and gene therapy. These customers value regulatory compliance, reliability, and a complete audit trail. Those requirements also support high switching costs. Retail represents approximately 29% of revenue, and we're concentrating our activity only on what we would call premium multi-site customers, where sensing, workflow, and regulatory requirements combine to support attractive economics. We're deliberately reducing our attention on fragmented lower-value opportunities where acquisition and service costs are too high.

Speaker #2: Retail represents approximately 29% of revenue, and we're concentrating our activity only on what we would call premium multi-site customers, where sensing, workflow, and regulatory requirements combine to support attractive economics.

Speaker #1: So we now operate with two clear areas of focus: medical represents approximately 71% of our continuing revenue, and it's our principal growth engine. Our strongest positions are in the NHS, private hospitals, and US plasma, with further opportunity in diagnostics, biotech, and cell and gene therapy.

Speaker #2: With delivery reducing our attention on fragmented, lower-value opportunities, where acquisition and service costs are too high. So our strategy is to deepen our medical positions, and pursue only higher-quality retail opportunities.

Speaker #1: These customers value regulatory compliance, reliability, and a complete audit trail. Those requirements also support high switching costs. Retail represents approximately 29% of revenue, and we're concentrating our activity only on what we would call premium multi-site customers, where sensing, workflow, and regulatory requirements combine to support attractive economics.

Speaker #2: Platform unification is the most important product initiative in this business today. Medical customers currently use a proven monitoring proposition, but they do not yet have the full workflow and analytics capabilities available on our modern platform.

Speaker #2: So next-generation medical monitoring brings those capabilities together. Our customers will retain their existing hardware, while gaining a significantly better software experience. The new platform adds enhanced regulatory functionality, electronic signatures, calibration records, integrated workflows, and a complete alert lifecycle.

Speaker #1: We're deliberately reducing our attention on fragmented, lower-value opportunities where acquisition and service costs are too high. So, our strategy is to deepen our medical positions and pursue only higher-quality retail opportunities.

Kit Kyte: Our strategy is to deepen our medical positions and pursue only higher quality retail opportunities. Platform unification is the most important product initiative in this business today. Medical customers currently use a proven monitoring proposition, but they do not yet have the full workflow and analytics capabilities available on our modern platform. Next-generation medical monitoring brings those capabilities together. Our customers will retain their existing hardware while gaining a significantly better software experience. The new platform adds enhanced regulatory functionality, electronic signatures, calibration records, integrated workflows, and a complete alert lifecycle. Moving to one cloud platform removes duplicated development and infrastructure. It should allow us to innovate faster, lower our cost to serve, and make a broader range of software available to the installed medical base. The opportunity extends beyond the new interface. It makes our complete monitor, act, and understand proposition available across the entire installed base.

Kit Kyte: Our strategy is to deepen our medical positions and pursue only higher-quality retail opportunities. Platform unification is the most important product initiative in this business today. Medical customers currently use a proven monitoring proposition, but they do not yet have the full workflow and analytics capabilities available on our modern platform. Next-generation medical monitoring brings those capabilities together. Our customers will retain their existing hardware while gaining a significantly better software experience. The new platform adds enhanced regulatory functionality, electronic signatures, calibration records, integrated workflows, and a complete alert lifecycle.

Speaker #1: Platform unification is the most important product initiative in this business today. Medical customers currently use a proven monitoring proposition, but they do not yet have the full workflow and analytics capabilities available on our modern platform.

Speaker #2: Moving to one cloud platform removes duplicated development and infrastructure. It should allow us to innovate faster, lower our cost of serve, and make a broader range of software available to install medical base.

Speaker #1: Next-generation medical monitoring brings these capabilities together. Our customers will retain their existing hardware while gaining a significantly improved software experience. The new platform adds enhanced regulatory functionality, electronic signatures, calibration records, integrated workflows, and a complete alert lifecycle.

Speaker #2: The opportunity extends beyond the new interface. It makes our complete monitor, act, and understand proposition available across medical, across the entire installed base. Delivery of this is structured into four practical phases.

Speaker #2: By the end of October, we are targeting core regulated medical functionality. The end-to-end CAM plus data flow, CAM plus being our medical product, and a completed customer migration design.

Speaker #1: Moving to one cloud platform removes duplicated development and infrastructure. It should allow us to innovate faster, lower our cost of serve, and make a broader range of software available to install medical base.

Kit Kyte: Moving to one cloud platform removes duplicated development and infrastructure. It should allow us to innovate faster, lower our cost to serve, and make a broader range of software available to the installed medical base. The opportunity extends beyond the new interface. It makes our complete monitor, act, and understand proposition available across the entire installed base.

Speaker #2: Then, calibration, operational qualification, and remaining feature parity are targeted for January. From February onwards, customers will begin running the existing and unified platforms in parallel.

Speaker #1: The opportunity extends beyond the new interface. It makes our complete monitor, act, and understand proposition available across medical, across the entire installed base. Delivery of this is structured into four practical phases.

Speaker #2: Migration will then proceed in controlled phases over several quarters. That timetable reflects our operational capacity and the validation and process changes required by customers.

Kit Kyte: Delivery of this is structured into 4 practical phases. By the end of October, we are targeting core regulated medical functionality, the end-to-end CAM+ data flow, CAM+ being our medical product, and a completed customer migration design. Calibration, operational qualification, and remaining feature parity are targeted for January. From February onwards, customers will begin running the existing and unified platforms in parallel. Migration will then proceed in controlled phases over several quarters. That timetable reflects our operational capacity and the validation and process changes required by customers. We expect to begin commercial go-to-market activity in the new calendar year, with commercial launch and complete customer migration as separate milestones. As the program progresses, the one code base should improve our development speed, reduce duplicated costs, and create further cross-sell opportunities. AI is already changing how our engineering organization works.

Speaker #1: By the end of October, we are targeting core regulated medical functionality. The end-to-end CAM plus data flow, CAM plus being our medical product, and a completed customer migration design.

Speaker #2: We expect to begin commercial go-to-market activity in the new calendar year. With commercial launch and complete custom migration, as separate milestones. As the program progresses, the one code base should improve our development speed, reduce duplicated cost, and create further cross-sell opportunities.

Speaker #1: Then, calibration, operational qualification, and remaining feature parity are targeted for January. From February onwards, customers will begin running the existing and unified platforms in parallel.

Speaker #1: Migration will then proceed in controlled phases over several quarters. That timetable reflects our operational capacity and the validation and process changes required by customers.

Speaker #2: AI is already changing how our engineering organization works. This is so much more than just vibe coding. We've built a structured development framework in which specialist agents, Checkit agents, support our software design, development, testing, and documentation.

Speaker #1: We expect to begin commercial go-to-market activity in the new calendar year, with commercial launch and complete custom migration as separate milestones. As the program progresses, the one code base should improve our development speed, reduce duplicated costs, and create further cross-sell opportunities.

Speaker #2: Human control remains built into the process. Security, performance, and quality reviews can block release, and define changes require explicit human approval. We're applying this capability directly within the platform unification and interface development program.

Speaker #2: Early projects indicate the potential for materially faster delivery, a substantially lower cost. We will measure our success through delivery speed, product quality, and development cost.

Speaker #1: AI is already changing how our engineering organization works. This is so much more than just vibe coding. We've built a structured development framework in which specialist agents, checkit agents, support our software design, development, testing, and documentation.

Kit Kyte: This is so much more than just vibe coding. We have built a structured development framework in which specialist agents, Checkit agents, support our software design, development, testing, and documentation. Human control remains built into the process. Security, performance, and code reviews can block release and define changes require explicit human approval. We are applying this capability directly within the platform unification and interface development program. Early projects indicate the potential for materially faster delivery at substantially lower costs. We will measure our success through delivery speed, product quality, and development cost. This is an internal operating capability that can allow Checkit to achieve much more with a focused engineering organization. I will hand over to Kris now to talk a bit more about our economic units and financial performance.

Speaker #2: This is an internal operating capability that can allow Checkit to achieve much more with a focused engineering organization. I'll hand over to Kris now to talk a bit more about our economic units and financial performance.

Speaker #1: Human control remains built into the process. Security, performance, and quality reviews can block release, and defined changes require explicit human approval. We're applying this capability directly within the platform unification and interface development program.

Speaker #3: Thank you, Kris. A couple of things I would like to highlight about the business and also about the results which we're presenting today. So first of all is the quality of our revenues.

Speaker #1: Early projects indicate the potential for materially faster delivery, a substantially lower cost. We will measure our success through delivery speed, product quality, and development cost.

Speaker #3: You see here that 97% of our revenue is recurring in nature, also the way that we contract with our customers. So we typically sign a 36-month contract with our customers.

Speaker #1: This is an internal operating capability that can allow Checkit to achieve much more with a focused engineering organization. I'll hand over to Chris now to talk a bit more about our economic units and financial performance.

Speaker #3: At the end of that 36 months, it will move on to a 12-month rolling contract. What that means is we have very good visibility of our revenues, of our cash flows, and of our future profitability.

Speaker #2: Thank you, Chris. There are a couple of things I would like to highlight about the business, and also about the results we are presenting today. First of all, is the quality of our revenues.

Kris Shaw: Thank you, Kris. A couple of things I would like to highlight about the business and also about the results which we are presenting today. First of all is the quality of our revenues. You see here that 97% of our revenue is recurring in nature. Also, the way that we contract with our customers, we typically sign a 36-month contract with our customers. At the end of that 36 months, it will move on to a 12-month rolling contract. What that means is we have very good visibility of our revenues, of our cash flows, and of our future profitability. I think it is also important to understand how we account for those contracts with our customers. From a revenue perspective, we obviously recognize the revenue over time equally as the contract progresses.

Speaker #3: I think it's also important to understand how we account for those contracts with our customers. So from a revenue perspective, we obviously recognize the revenue over time, equally as the contract progresses.

Speaker #2: You see here that 97% of our revenue is recurring in nature. Also, the way that we contract with our customers, so we typically sign a 36-month contract with our customers.

Speaker #3: From a cost perspective, typically when we do the installation at the beginning of the contract, we take the full cost of the hardware and the full cost of the installation at the very beginning of the contract.

Speaker #2: At the end of that 36 months, it will move onto a 12-month rolling contract. What that means is we have very good visibility of our revenues, our cash flows, and our future profitability.

Speaker #3: What that means is that the first year of our contract, so typically break even, and subsequently become increasingly more profitable. And you'll see that feeding through into the gross margin as you see that gross margin gradually increasing over time.

Speaker #2: I think it's also important to understand how we account for those contracts with our customers. So from a revenue perspective, we obviously recognize the revenue over time, equally as the contract progresses.

Speaker #3: The other thing about this business is that what we're saying is very much a mission-critical product. We're looking after blood products, we're looking after vaccines, we're ultimately looking after patient safety at the end of the day.

Speaker #2: From a cost perspective, typically when we do the installation at the beginning of the contract, we take the full cost of the hardware and the full cost of the installation at the very beginning of the contract.

Kris Shaw: From a cost perspective, typically, when we do the installation at the beginning of the contract, we take the full cost of the hardware and the full cost of the installation at the very beginning of the contract. What that means is that the first year of our contracts, they typically break even and subsequently become increasingly more profitable. You will see that feeding through into the gross margin as you see that gross margin gradually increasing over time. The other thing about this business is that what we are selling is very much a mission-critical product. We are looking after blood products. We are looking after vaccines. We are ultimately looking after patient safety at the end of the day, and also food safety.

Speaker #3: And also food safety. This means that our customers are not necessarily looking for the cheapest solution, but they're looking for a solution which allows them to comply with the strict regulatory requirements that they're in.

Speaker #2: What that means is that the first year of our contract will typically break even, and subsequently become increasingly more profitable. You'll see that feeding through into the gross margin, as you see that gross margin gradually increasing over time.

Speaker #3: And also provide an auditable solution as well. This, again, translates into the high gross margin, which we're able to deliver from this product as well.

Speaker #2: The other thing about this business is that what we're saying is very much a mission-critical product. We're looking after blood products, we're looking after vaccines, we're ultimately looking after patient safety at the end of the day.

Speaker #3: And also translates into the strong retention rates. You say that we have 94% GRR at. That means that on average, our customers are staying with us for around about 20 years.

Speaker #2: And also food safety. This means that our customers are not necessarily looking for the cheapest solution, but they're looking for a solution that allows them to comply with the strict regulatory requirements that they're in.

Speaker #3: Our NRR of 102% is a little bit below where we'd like it to be, so we have said today that we're targeting 105 to 110%.

Kris Shaw: This means that our customers are not necessarily looking for the cheapest solution, but they are looking for a solution which allows them to comply with the strict regulatory requirements that they are in, and also provide an auditable solution as well. This again, translates into the high gross margin which we are able to deliver from this product as well, and also translates into the strong retention rates. You see that we have 94% GRR. That means that on average, our customers are staying with us for around about 20 years. Our NRR of 102% is a little bit below where we would like it to be. We have said today that we are targeting 105% to 110%. As Kris Shaw has highlighted, we have a way to get there, which is through the next generation medical monitoring and through the platform unification, delivering us upsell opportunities to our existing customers.

Speaker #3: As Kris has highlighted, we have a way to get there, which is through the next-generation medical monitoring and through the platform unification delivering us upsell opportunities to our existing customers.

Speaker #2: And also provide an auditable solution as well. This, again, translates into the high gross margin which we're able to deliver from this product as well.

Speaker #2: And also translates into the strong retention rates. You see that we have 94% GRR. That means that, on average, our customers are staying with us for around about 20 years.

Speaker #3: Just looking in terms of the results, you can see that the bookings number has improved in the current period. So we went from a 600,000 pounds of booking in the last period to 700,000 pounds in the current period.

Kris Shaw: That means that on average, our customers are staying with us for around about 20 years. Our NRR of 102% is a little bit below where we would like it to be. We have said today that we are targeting 105% to 110%. As Kris Shaw has highlighted, we have a way to get there, which is through the next generation medical monitoring and through the platform unification, delivering us upsell opportunities to our existing customers.

Speaker #3: If you look a little bit deeper into that number, you'll see that we have a greater proportion of bookings from new customers, a greater proportion of bookings from expansion from existing customers, and a smaller proportion from price increases.

Speaker #2: Our NRR of 102% is a little bit below where we'd like it to be, so we have said today that we're targeting 105% to 110%.

Speaker #2: As Chris has highlighted, we have a way to get there, which is through the next-generation medical monitoring and through the platform unification delivering us upsell opportunities to our existing customers.

Speaker #3: So that is really a strengthening of the quality of those bookings as well. On the other side of the ARR equation, we have reduced the churn from 800,000 pounds to 500,000 pounds.

Speaker #2: Just looking in terms of the results, you can see that the bookings number has improved in the current period, so we went from a 600,000 pounds of booking in the last period to 700,000 pounds in the current period.

Kris Shaw: Just looking in terms of the results, you can see that the bookings number has improved in the current period. We went from a GBP 600,000 of booking in the last period to GBP 700,000 in the current period. If you look a little bit deeper into that number, you will see that we have a greater proportion of bookings from new customers, a greater proportion of bookings from expansion from existing customers, and a smaller proportion from price increases. That is really a strengthening of the quality of those bookings as well. On the other side of the ARR equation, we have reduced the churn from GBP 800,000 to GBP 500,000. Overall, we are making significant improvements on both sides of that ARR equations. We certainly recognize that there is more to do, but we are making progress.

Speaker #3: So overall, we're making significant improvements on both sides of that ARR equations. We certainly recognize that there's more to do, but we are making progress.

Speaker #2: If you look a little bit deeper into that number, you'll see that we have a greater proportion of bookings from new customers, a greater proportion of bookings from expansion from existing customers, and a smaller proportion from price increases.

Speaker #3: From this slide, I think I would really like to highlight the improvement in the adjuster's EBITDA. You see that we went from a 900,000 pounds EBITDA loss in the prior period to a 300,000 pounds EBITDA profit in the current period.

Speaker #2: So that is really a strengthening of the quality of those bookings as well. On the other side of the ARR equation, we have reduced the churn from £800,000 to £500,000.

Speaker #3: It's a 1.2 million pounds swing. That hasn't that has come from ultimately a change in the cost base of the business. It is a structural change.

Speaker #2: So overall, we're making significant improvements on both sides of that ARR equation. We certainly recognize that there's more to do, but we are making progress.

Speaker #3: It is very much embedded into the way that we operate, and it won't be changing back. And therefore, we have significant operational leverage as we move forwards.

Speaker #3: We will continue to be investing in the business, so we will be making investments in the products. As Kris has highlighted, we are finishing the next-generation medical monitoring.

Speaker #2: From this slide, I think I would really like to highlight the improvement in the adjusted EBITDA. You see that we went from a £900,000 EBITDA loss in the prior period to a £300,000 EBITDA profit in the current period.

Kris Shaw: In this slide, I think I would really like to highlight the improvement in the adjusted EBITDA. You see that it went from a GBP 900,000 EBITDA loss in the prior period to GBP 300,000 EBITDA profit in the current period. It is a GBP 1.2 million swing. That has come from ultimately a change in the cost base of the business. It is a structural change. It is very much embedded into the way that we operate, and it won't be changing back, and therefore we have significant operational leverage as we move forwards. We will continue to be investing in the business, so we will be making investments in the products. As Kris Shaw has highlighted, we are finishing the next generation medical monitoring. We will be finishing the platform unification. We have investments in go-to-market.

Speaker #3: We're finishing the platform unification. We have investments in go-to-market. Our objectives, therefore, over the short term is to ensure that we continue to be cash flow break even, ensure that we continue to be EBITDA profitable, but not necessarily in the very short term over the next year to drive EBITDA to the highest number possible.

Speaker #2: It's a 1.2 million-pound swing. That hasn't that has come from ultimately a change in the cost base of the business. It's a structural change.

Speaker #2: It is very much embedded into the way that we operate, and it won't be changing back, and therefore we have significant operational leverage as we move forwards.

Speaker #3: That will come in the future as those investments deliver results. Today, we announced the discontinued operation. That was a product which was provided to a single customer.

Speaker #2: We will continue to invest in the business, so we will be making investments in the products. As Chris has highlighted, we're finishing the next-generation medical monitoring.

Speaker #3: It added significant complexity to the business, and it's held back development of the platform. Ultimately, it had a significant opportunity cost associated with it, and therefore, whilst it did deliver an accounting profit in the period, the overall contribution to the business was negligible.

Speaker #2: We're finishing the platform unification. We have investments in go-to-market. Our objectives, therefore, over the short term are to ensure that we continue to be cash flow break-even, ensure that we continue to be EBITDA profitable, but not necessarily, in the very short term over the next year, to drive EBITDA to the highest number possible.

Kris Shaw: Our objectives, therefore, over the short term is ensure that we continue to be cash flow break even, ensure that we continue to be EBITDA profitable, but not necessarily in the very short term over the next year to drive EBITDA to the highest number possible. That will come in the future as those investments deliver results. Today, we announced the discontinued operation. That was a product which was provided to a single customer. It added significant complexity to the business, and it held back development of the platform. Ultimately, it had a significant opportunity cost associated with it, and therefore, whilst it did deliver an accounting profit in the period, the overall contribution to the business was negligible. Overall, the business is very much simpler, it is very much lower cost, and growth will convert into EBITDA and cash generation in the future.

Speaker #2: That will come in the future as those investments deliver results. Today, we announced that there was a product which has provided for a single customer.

Speaker #3: Overall, the business is very much simpler, it is very much lower cost, and growth will convert into EBITDA and cash generation in the future.

Kris Shaw: Today, we announced the discontinued operation. That was a product which was provided to a single customer. It added significant complexity to the business, and it held back development of the platform. Ultimately, it had a significant opportunity cost associated with it, and therefore, whilst it did deliver an accounting profit in the period, the overall contribution to the business was negligible. Overall, the business is very much simpler, it is very much lower cost, and growth will convert into EBITDA and cash generation in the future.

Speaker #3: You'll see from this slide that our cash flow has been broadly flat over the last 12 months. This contrasts with earlier periods where we were at significantly cash-consumptive.

Speaker #2: It added significant complexity to the business, and it's held back development of the platform. Ultimately, it had a significant opportunity cost associated with it, and therefore, whilst it did deliver an accounting profit in the period, the overall contribution to the business was negligible.

Speaker #3: This is obviously a result of the structural change in the cost base. We have sufficient cash to continue moving forwards and making the investments which we plan to.

Speaker #3: We have no external debt on the balance sheet. The only significant liability on our balance sheet is the deferred revenue, which is from customers who pay us annual advance, and therefore acts as a working capital funding function for the business.

Speaker #2: Overall, the business is much simpler. It has significantly lower costs, and growth will convert into EBITDA and cash generation in the future.

Speaker #2: You can see from this slide that our cash flow has been broadly flat over the last 12 months. This contrasts with earlier periods, where we were significantly cash consumptive.

Speaker #3: From a capital allocation perspective, our objective as I said is very much to preserve cash. We have a focused roadmap. We'll be funding the platform unification.

Kris Shaw: You see from this slide that our cash flow has been broadly flat over the last 12 months. This contrasts with earlier periods where we were significantly cash consumptive. This is obviously a result of the structural change in the cost base. We have sufficient cash to continue moving forward and making the investments which we plan to. We have no external debt on the balance sheet. The only significant liability on our balance sheet is the deferred revenue, which is from customers who pay us annual in advance, and therefore acts as a working capital funding function for the business. From a capital allocation perspective, our objective, as I said, is very much to preserve cash. We have a focused roadmap. We will be funding the platform unification. We will be funding the go-to-market, but we will be disciplined in these investments, and these investments will support future growth.

Speaker #2: This is obviously a result of the structural change in the cost base. We have sufficient cash to continue moving forward and making the investments which we plan to.

Speaker #3: We'll be funding the go-to-market, but we'll be disciplined in these investments and these investments will support future growth. I'll hand you back to Kris.

Speaker #2: We have no external debt on the balance sheet. The only significant liability on our balance sheet is deferred revenue, which is from customers who pay us annually in advance, and therefore acts as a working capital funding function for the business.

Speaker #1: Thank you, Kris. I mean, the key point is that Checkit now has a stronger financial foundation from which to invest selectively in growth. I'll finish by explaining how we intend to do that.

Speaker #2: From a capital allocation perspective, our objective, as I said, is very much to preserve cash. We have a focused roadmap, and we'll be funding the platform unification.

Speaker #1: So the board has adopted a two-year framework for the next phase of value creation. As Kris mentioned, we intend to sustain adjusted EBITDA profitability and cash generation while building progressively stronger ARR growth.

Kris Shaw: From a capital allocation perspective, our objective, as I said, is very much to preserve cash. We have a focused roadmap. We will be funding the platform unification. We will be funding the go-to-market, but we will be disciplined in these investments, and these investments will support future growth.

Speaker #2: We'll be funding the go-to-market, but we'll be disciplined in these investments, and these investments will support future growth. I'll hand you back to Chris.

Speaker #1: We will pursue that through disciplined investment in a unified platform and medical commercial activity. We've established clear retention objectives. Kris mentioned net revenue retention of between 105 and 110% and gross revenue retention above 95%.

Kris Shaw: I will hand you back to Kris.

Speaker #1: Thank you, Chris. The key point is that Checkit now has a stronger financial foundation from which to invest selectively in growth. I'll finish by explaining how we intend to do that.

Kit Kyte: Thank you, Kris. I mean, the key point is that Checkit now has a stronger financial foundation from which to invest selectively in growth. I will finish by explaining how we intend to do that. The board has adopted a two-year framework for the next phase of value creation. As Kris mentioned, we intend to sustain adjusted EBITDA profitability and cash generation while building progressively stronger ARR growth. We will pursue that through disciplined investment in a unified platform and medical commercial activity. We have established clear retention objectives. Kris mentioned net revenue retention of between 105% and 110%, and gross revenue retention above 95%. Improved retention will help us reduce the amount of new business required simply to replace churn and allows bookings to compound more effectively. The platform unification supports that objective by giving our medical customers more software to adopt while reducing our own cost to serve.

Speaker #1: Improved retention will help us reduce the amount of new business required simply to replace churn and allows bookings to compound more effectively. The platform unification supports that objective by giving our medical customers more software to adopt, while reducing our own cost to serve.

Speaker #1: So the board has adopted a two-year framework for the next phase of value creation. As Chris mentioned, we intend to sustain adjusted EBITDA profitability and cash generation while avoiding progressively weaker ARR growth.

Speaker #1: We will pursue that through disciplined investment in a unified platform and medical commercial activity. We've established clear retention objectives. Chris mentioned net revenue retention of between 100 and 510%, and gross revenue retention above 95%.

Speaker #1: As Kris mentioned, delivery will not necessarily be linear, particularly during customer migration, but the direction and measures are clear. We see substantial white space within medical, so I want to double-click on that.

Kit Kyte: We have established clear retention objectives. Kris mentioned net revenue retention of between 105% and 110%, and gross revenue retention above 95%. Improved retention will help us reduce the amount of new business required simply to replace churn and allows bookings to compound more effectively. The platform unification supports that objective by giving our medical customers more software to adopt while reducing our own cost to serve.

Speaker #1: However, we will remain selective about where we invest. The immediate opportunities are those closest to our existing customers' references and regulatory capabilities. So the NHS still contains meaningful white space, particularly outside of England, and we have a strong reference base there.

Speaker #1: Improved retention will help us reduce the amount of new business required simply to replace churn, and allows bookings to compound more effectively. The platform unification supports that objective by giving our medical customers more software to adopt, while reducing our own cost to serve.

Speaker #1: As Chris mentioned, delivery will not necessarily be linear, particularly during customer migration. However, the direction and measures are clear. We see substantial white space within medical, so I want to double-click on that.

Kit Kyte: As Kris mentioned, delivery will not necessarily be linear, particularly during customer migration, but the direction and measures are clear. We see substantial white space within medical, so I want to double-click on that. However, we will remain selective about where we invest. The immediate opportunities are those closest to our existing customers, references, and regulatory capabilities. So the NHS still contains meaningful white space, particularly outside of England, and we have a strong reference base there. For those that are new, we are present in about 186 different NHS hospitals and about 86 NHS trusts. For reference, there are almost 2,000 hospitals across the UK for which we have the same use case to be able to deploy time and time again. In the US, blood plasma remains our most established route to growth, with related opportunities in blood, tissue, and organ procurement.

Speaker #1: So for those that are new, we're present in about 186 different NHS hospitals and about 86 NHS trusts. For reference, there are almost 2,000 hospitals across the UK, for which we have the same use case to be able to deploy time and time again.

Speaker #1: However, we will remain selective about where we invest. The immediate opportunities are those closest to our existing customers, references, and regulatory capabilities. The NHS still contains a meaningful white space, particularly outside of England.

Speaker #1: In the US, blood plasma remains our most established route to growth, with the related opportunities in blood, tissue, and organ procurement. Again, for those that are new, we have six of the top 10 blood plasma providers in the US on their books already, but there's clearly more to go after.

Kit Kyte: So the NHS still contains meaningful white space, particularly outside of England, and we have a strong reference base there. For those that are new, we are present in about 186 different NHS hospitals and about 86 NHS trusts. For reference, there are almost 2,000 hospitals across the UK for which we have the same use case to be able to deploy time and time again. In the US, blood plasma remains our most established route to growth, with related opportunities in blood, tissue, and organ procurement.

Speaker #1: And we have a strong reference base there. So for those that are new, we're present in about 186 different NHS hospitals and about 86 NHS trusts.

Speaker #1: We also see potential in biotech, cell, and gene therapy and diagnostics. Including expansion through existing OEM relationships. Selected international markets may offer further opportunity, where compliance requirements resemble those we already serve.

Speaker #1: For reference, there are almost 2,000 hospitals across the UK, for which we have the same use case to be able to deploy time and time again.

Speaker #1: As always, we will assess each opportunity against conversion evidence, delivery requirements, and capital efficiency. The priority is to increase our share of the available market without spreading resources across too many new areas.

Speaker #1: In the US, blood plasma remains our most established route to growth, with related opportunities in blood, tissue, and organ procurement. Again, for those that are new, we have six of the top 10 blood plasma providers in the US on our books already, but there's clearly more to go after.

Kit Kyte: Again, for those that are new, we have 6 of the top 10 blood plasma providers in the US on our books already, but there is clearly more to go after. We also see potential in biotech, cell, and gene therapy and diagnostics, including expansion through existing OEM relationships. Selected international markets may offer further opportunity where compliance requirements resemble those we already serve. As always, we will assess each opportunity against conversion evidence, delivery requirements, and capital efficiency. The priority is to increase our share of the available market without spreading resources across too many new areas. Our plan, therefore, rests on 5 connected areas of execution. First and foremost, we must complete the platform unification. This is the foundation for lower development cost and a better medical proposition, and more cross-sell on the install base.

Speaker #1: Our plan, therefore, rests on five connected areas of execution. First and foremost, we must complete the platform unification. This is the foundation for lower development cost and a better medical proposition and more cross-sell.

Speaker #1: We also see potential in biotech, cell, and gene therapy and diagnostics. Including expansion through existing OEM relationships. Selected international markets may offer further opportunity where, compliance requirements resemble those we already serve.

Speaker #1: On the installed base. Secondly, we must deepen our medical positions through the NHS, US plasma, biotech, and existing global accounts. Third, we must keep our retail-focused only on larger, higher-quality premium customers, and we must exit activity that cannot support attractive economics.

Speaker #1: Our plan therefore rests on five connected areas of execution. First and foremost, we must complete the platform unification. This is the foundation for lower development cost and a better medical proposition and more cross-sell.

Speaker #1: Fourth, we must continue to develop the US opportunity through sustained executive attention and targeted periods on the ground. Finally, we must continue to apply AI to measurable productivity gains across product development.

Kit Kyte: Secondly, we must deepen our medical positions through the NHS, US plasma, biotech, and existing global accounts. Third, we must keep our retail focused only on larger, higher quality premium customers, and we must exit activity that cannot support attractive economics. Fourth, we must continue to develop the US opportunity through sustained executive attention and targeted periods on the ground. Finally, we must continue to apply AI to measurable productivity gains across product development. The balance matters here. Improve growth without creating an undisciplined cost base, and protect cash while completing the product investment required for the next phase. In closing, Checkit enters this phase as a materially stronger business. We have differentiated technology in markets where monitoring, workflow, and compliance are mission critical. We have 97% recurring revenue, improving retention and a cost base that will return this business to profitability.

Speaker #1: The balance matters here. Improved growth without creating an undisciplined cost base and protect cash while completing the product investment required for the next phase.

Speaker #1: So in closing, Checkit enters this phase as a materially stronger business. We have differentiated technology in markets where monitoring, workflow, and compliance are mission-critical.

Speaker #1: Fourth, we must continue to develop the US opportunity. Through sustained executive attention and targeted periods on the ground. Finally, we must continue to apply AI to measurable productivity gains across product development.

Speaker #1: We have 97% recurring revenue, improving retention and cost base that have returned this business to profitability. We have a clear product program, a focused commercial strategy, and meaningful operating leverage if we execute successfully.

Speaker #1: The balance matters here. Improved growth without creating an undisciplined cost base and protect cash while completing the product investment required for the next phase.

Speaker #1: Our priorities are straightforwards: protect profitability and cash completely unified medical platform, and build progressively stronger recurring revenue growth. We believe that delivery against those priorities can create materially greater value for shareholders.

Speaker #1: So, in closing, Checkit entered this phase as a materially stronger business. We have differentiated workflow, and compliance is mission-critical. We have 97% recurring revenue.

Kit Kyte: In closing, Checkit enters this phase as a materially stronger business. We have differentiated technology in markets where monitoring, workflow, and compliance are mission critical. We have 97% recurring revenue, improving retention and a cost base that will return this business to profitability.

Speaker #1: And so with that, I'd like to thank you all, and Kris and I would certainly be pleased to take questions.

Speaker #2: That's great. Thank you very much for your presentation. If I may just bring back up your cameras. Ladies and gentlemen, please do continue to submit your questions, just by using the Q&A tab situated on the top right-hand corner of your screen.

Speaker #1: Improving retention and cost base that have returned this business to profitability. We have a clear product program, a focused commercial strategy, and meaningful operating leverage if we execute successfully.

Kit Kyte: We have a clear product program, a focused commercial strategy, and meaningful operating leverage if we execute successfully. Our priorities are straightforward. Protect profitability and cash, complete the unified medical platform, and build progressively stronger recurring revenue growth. We believe that delivering against those priorities can create materially greater value for shareholders. And so with that, I would like to thank you all, and Kris and I would certainly be pleased to take questions.

Speaker #2: Just while the company takes a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed for our investor dashboard.

Speaker #2: As you can see, we have received a number of questions, so that's today's presentation. And Kris, could I please ask you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.

Speaker #1: And so, with that, I'd like to thank you all, and Chris and I would certainly be pleased to take questions.

Speaker #3: Thank you. So first question here. In the past, you have said 2027 will be profitable. Do you maintain that outlook?

Speaker #3: That's great. Thank you very much for your presentation. If I may just bring back up your cameras. Ladies and gentlemen, please do continue to submit your questions, just by using the Q&A tab situated on the top right-hand corner of your screen.

Operator: That is great. Thank you very much for your presentation. If I may just bring back up your cameras. Ladies and gentlemen, please do continue to submit your questions just via the Q&A tab situated on the top right-hand corner of your screen. Just while the company takes a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our Investor Meet Company dashboard. As you can see, we have received a number of questions throughout today's presentation. And Kris, could I please ask you to read out the questions and give responses where appropriate to do so, and I will pick up from you at the end.

Speaker #1: Yes. We've achieved that milestone now, and as we've mentioned throughout this presentation, we expect to continue to improve that over the coming periods. Anything you'd add to that, Kris?

Speaker #3: Just while the company takes a few moments to review those questions submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard.

Speaker #3: No, I think that's right. I think that the results which we've had in the latest period, from the continuing, discontinuing operations, and the remainder of the year show that we'll be able to deliver the EBITDA profitability number which we originally set out to achieve.

Speaker #3: As you can see, we have received a number of questions, so that's today's presentation. Chris, could I please ask you to read out the questions and give responses where appropriate, and I'll pick up from you at the end.

Speaker #2: Thank you. So, first question here: In the past, you have said 2027 will be profitable. Do you maintain that outlook?

Kris Shaw: Thank you. So first question here. In the past, you have said 2027 will be profitable. Do you maintain that outlook?

Speaker #3: Next question. Given that 71% of Checkit's business is now concentrated in the medical sector, your organic growth relies entirely on NHS trusts. However, individual hospitals heavily mandate purchasing through official framework agreements and approved vendor lists.

Speaker #1: Yes, we've achieved that milestone now, and as we've mentioned throughout this presentation, we expect to continue to improve that over the coming periods. Anything you'd add to that, Chris?

Kit Kyte: Yes. We've achieved that milestone now, and as we've mentioned throughout this presentation, we expect to continue to improve that over coming periods. Anything you'd add to that, Kris?

Speaker #3: What is the plan, if any, to circumvent this barrier?

Speaker #2: No, I think that's right. I think that the results you've had in the latest period from the continuing and discontinuing operations, and the remainder of the year, show that we'll be able to deliver the EBITDA profitability number which we originally set out to achieve.

Kris Shaw: No, I think that's right. I think that the results which we've had in the latest periods from the continuing, discontinued operations and the remainder of the year show that we'll be able to deliver the EBITDA profitability number, which we originally set out to achieve. Next question. Given that 71% of Checkit's business is now concentrated in the medical sector, your organic growth relies entirely on NHS trusts. However, individual hospitals heavily mandate purchasing through official framework agreements and approved vendor lists. What is the plan, if any, to circumvent this barrier?

Speaker #1: Oh, well, the short answer is that we're already on all of those frameworks, and prefer apply supplier lists. So we're inside the tent. That's a sort of moat of its own.

Speaker #1: So that's already achieved. And as I mentioned earlier, it's a pretty proven use case for us now, given the 186 hospitals we're currently in.

Speaker #2: Next question. Given that 71% of Checkit's business is now concentrated in the medical sector, your organic growth relies entirely on NHS trusts. However, individual hospitals heavily mandate purchasing through official framework agreements and approved vendor lists.

Speaker #1: So we'd expect to continue to expand those over time in the way that we have done. The hope is that, again, with a unified medical platform and a lower cost to serve, that we can actually be even more competitive on certain NHS tenders where price is one of the leading indicators.

Speaker #2: What is the plan, if any, to circumvent this barrier?

Speaker #1: Oh, well, the short answer is that we're already on all of those frameworks, and prefer supplier lists. So we're inside the tent. That's a sort of moat of its own.

Kit Kyte: Well, the short answer is that we're already on all of those frameworks and preferred supplier lists, so we're inside the tent. That's a sort of moat of its own. So that's already achieved, and as I mentioned earlier, it's a pretty proven use case for us now, given the 186 hospitals we're currently in. So we'd expect to continue to expand those over time in the way that we have done. The hope is that, again, with a unified medical platform and a lower cost to serve, that we can actually be even more competitive on certain NHS tenders where price is one of the leading indicators. So that becomes an attractive upside for us.

Speaker #1: So that becomes an attractive upside for us.

Speaker #3: Did you try to move the last customer on the legacy product to your mere technology platform? If so, are you able to see it why it wasn't possible?

Speaker #1: So that's already achieved. And as I mentioned earlier, it's a proven use case for us now, given the fact we're currently in 186 hospitals.

Speaker #1: Well, the short answer is no, because the product itself being legacy was focused on a non-core part of this business. And that's what that customer was particularly interested in.

Speaker #1: We took the view, given that it was negligible in terms of its contribution to the business, and it was a blocker indeed for us completing the platform unification program.

Speaker #1: So that becomes an attractive upside for us.

Speaker #1: But the right thing to do was to retire the product or sunset the product alongside the one customer was on

Speaker #2: Did you try to move the last customer on the legacy product to your mere technology platform? If so, are you able to see why it wasn't possible?

Kris Shaw: Did you try to move the lost customer on the legacy product to your main technology platform? If so, are you able to say why it wasn't possible?

Speaker #3: Is the development work needed to complete the unified platform technical difficult technically difficult to do? I'm just thinking about any risks to the achievement of this.

Speaker #1: Well, the short answer is no, because the product itself being legacy was focused on a non-core part of this business. And that's what that customer was particularly interested in.

Kit Kyte: The short answer is no, because the product itself being legacy was focused on a non-core part of this business, and that's what that customer was particularly interested in. We took the view, given that it was negligible in terms of its contribution to the business, and it was a blocker indeed for us completing the platform unification program, that the right thing to do was to retire the product or sunset the product alongside the one customer that was on there.

Speaker #1: It is technically difficult to do, but as we have a technical competent team. And as I mentioned earlier in the session, that team is now being augmented with Checkit's specific agents that we built up to get the work done.

Speaker #1: We took the view, given that it was negligible in terms of its contribution to the business, and it was a blocker indeed for us completing the platform unification program.

Speaker #1: But the right thing to do was to retire the product, or sunset the product alongside the one customer that was on there.

Speaker #1: So, so far, our progress is in line or ahead of management expectations on that premise. I don't see a huge amount of risk with that work getting completed in the timelines we suggested.

Speaker #2: Is the development work needed to complete the unified platform technically difficult to do? I'm just thinking about any risks to the achievement of this.

Kris Shaw: Is the development work needed to complete the unified platform technically difficult to do? I'm just thinking about any risks to the achievement of this.

Speaker #3: Could you please talk a little about your current position in the NHS and what opportunities you see for growth there?

Speaker #1: It is technically difficult to do, but we have a technically competent team. As I mentioned earlier in the session, that team is now being augmented with Checkit's specific agents that we've built up to get the work done.

Kit Kyte: It is technically difficult to do, but we have a technically competent team, and as I mentioned earlier in the session, that team is now being augmented with Checkit specific agents that we built up to get the work done. So far progress is in line or ahead of management expectations on that premise. I don't see a huge amount of risk of that work getting completed in the timelines we suggested.

Speaker #1: Yes. Similar to the previous, we're in 86 different trusts. The use case is predominantly around pharmacy and hematology. That's our kind of the primary use case.

Speaker #1: So, so far, progress is in line with or ahead of management expectations on that premise. I don't see a significant amount of risk with that work being completed within the timelines we suggested.

Speaker #1: The NHS is obviously significant in scale, and it's very decentralized. So trusts and individual hospitals tend to meet with their procurement decisions. You need to be inside all of the procurement frameworks, as I mentioned before, in order to be able to participate.

Kris Shaw: Could you please talk a little about your current position in the NHS and what opportunities you see for growth there?

Speaker #2: Could you please talk a little about your current position in the NHS and what opportunities you see for growth there?

Speaker #1: And in almost every instance, the way that they purchase is through some kind of some form of tender-led procurement activity. What we've seen in the past is that we are there's three criteria in which the NHS will award contracts.

Speaker #1: Yes. Similar to the previous, look, we're in 86 different trusts. The use case is predominantly around pharmacy and hematology. That's our kind of use case.

Kit Kyte: Yes. Similar to the previous. Look, we are in 86 different trusts. The use case is predominantly around pharmacy and hematology. That is our kind of the primary use case. The NHS is obviously significant in scale and it is very decentralized, so trusts and individual hospitals tend to make their procurement decisions. You need to be inside all of the procurement frameworks, as I mentioned before, in order to be able to participate. In almost every instance, the way that they purchase is through some form of tender-led procurement activity. What we have seen in the past is that there are three criteria in which the NHS will award contracts: its technical capability, its quality, and its price. We almost always score highest on technical capability and quality, and sometimes we have found out that we are maybe more expensive than a lower price competitor.

Speaker #1: It's technical capability, it's quality, and it's price. We almost always score highest on technical capability and quality, and sometimes we have been we've found out that we are maybe more expensive than a lower-price competitor.

Speaker #1: The NHS is obviously significant in scale, and it's very decentralized. Trusts and individual hospitals tend to make their procurement decisions. You need to be inside all of the procurement frameworks, as I mentioned before, in order to be able to participate.

Speaker #1: So going forwards, we would like to think that we with a lower cost to serve, we can actually compete effectively on price whilst retaining margin.

Kit Kyte: In almost every instance, the way that they purchase is through some form of tender-led procurement activity. What we have seen in the past is that there are three criteria in which the NHS will award contracts: its technical capability, its quality, and its price. We almost always score highest on technical capability and quality, and sometimes we have found out that we are maybe more expensive than a lower price competitor.

Speaker #1: And that then gives us an improved set of conversion metrics to go after.

Speaker #3: Given the reported 25 pence level of interest, what prevented the FSP from resulting in a transaction? And do you expect further interest in the business to emerge?

Speaker #1: It's technical capability, it's quality, and it's price. We almost always score highest on technical capability and quality, and sometimes we've found out that we are maybe more expensive than the lower price competitor.

Speaker #1: So as it relates to the FSP, worth just briefly commenting on this, we've spent the last six months fielding significant bidder interest. I'm not at liberty to go into the exact details because of the takeover panel rules.

Speaker #1: So, going forward, we would like to think that, with the lower cost to serve, we can actually compete effectively on price whilst retaining margin.

Kit Kyte: Going forwards, we would like to think that with the lower cost to serve, we can actually compete effectively on price whilst retaining margin. That then gives us an improved set of conversion metrics to go after.

Speaker #1: But in excess of 40 to 50 different bidders have expressed interest mixture, as we mentioned in our interims update, a mixture of private equity and strategic parties.

Speaker #1: And that then gives us an improved set of conversion metrics to go after.

Speaker #2: Given the reported 25 pence level of interest, what prevented the FSP from resulting in a transaction? And do you expect further interest in the business to emerge?

Kris Shaw: Given the reported 25 pence level of interest, what prevented the FSP from resulting in a transaction, and do you expect further interest in the business to emerge?

Speaker #1: Whilst we got credible executable bids on the table, including one valued at 25p, that we could see a path to successful closure on, it was ultimately a question around shareholder value.

Speaker #1: So as it relates to the FSP, I mean, worth just briefly commenting on this. We've spent the last six months fielding significant bidder interest.

Kit Kyte: As it relates to the FSP, worth just briefly commenting on this. We have spent the last six months fielding a significant bidder interest. I am not at liberty to go into the exact details because of The Takeover Panel rules, but in excess of 40 to 50 different bidders have expressed interest. As we mentioned in our interim update, a mixture of private equity and strategic parties. While we got credible executable bids on the table, including one valued at 25p that we could see a path to successful closure on, it was ultimately a question around shareholder value. The board's recommendation or the board's process is that we felt our business should be able to command better shareholder value than the bids that we currently received, and that is why we have drawn a line in the process as of today.

Speaker #1: And the board's recommendation or the board's process is that we felt that our business should be able to command better shareholder value than the bids that we currently received.

Speaker #1: I'm not at liberty to go into the exact details because the takeover panel rules. But in excess of 40 to 50 different bidders have expressed interest mixture, as we mentioned in our interims update, a mixture of private equity and strategic parties.

Speaker #1: And that's why we've drawn a line in the process as of today. But in terms of go forwards business, as we mentioned, management here is focused explicitly on execution.

Kit Kyte: As we mentioned in our interim update, a mixture of private equity and strategic parties. While we got credible executable bids on the table, including one valued at 25p that we could see a path to successful closure on, it was ultimately a question around shareholder value. The board's recommendation or the board's process is that we felt our business should be able to command better shareholder value than the bids that we currently received, and that is why we have drawn a line in the process as of today.

Speaker #1: Whilst we got credible executable bids on the table, including one value that 25p, that we could see a path to successful closure on, it was ultimately a question around shareholder value.

Speaker #1: And remaining independent, that being said, of course, given the process we've just run, and given the Director of Government Business, the board remains open to approaches and indeed approaches might well come, but that's for something for down the line.

Speaker #1: And the board's recommendation, or the board's process, is that we felt our business should be able to command better shareholder value than the bids we have currently received.

Speaker #3: There's continuing investment in products for this has never been reflected in revenue growth. Singer notes suggest limited growth. Why is the business not growing?

Speaker #1: And that's why we've drawn a line in the process as of today. But in terms of go forwards business, as we mentioned, management here is focused explicitly on execution.

Kit Kyte: But in terms of go forwards business, as we mentioned, management here is focused explicitly on execution and remaining independent. That being said, of course, given the process we have just run, and given the direction of travel in the business, the board remains open to approaches, and indeed approaches might well come, but that is for something for down the line.

Speaker #1: It's a good question. Well, I don't think the business is not growing. I think that would be an incorrect statement. The business is growing at a rate that is sustainable for its current operation.

Speaker #1: And remaining independent, that being said, of course, given the process we've just run, and given the Director of Government Business, the board remains open to approaches—and indeed, approaches might well come—but that's something for down the line.

Speaker #1: As I mentioned, as we've mentioned in this program, one of the holdbacks has been I would suggest a split of R&D and indeed go to market focus around too many legacy platforms.

Speaker #2: There's continuing investment in products, but this has never been reflected in revenue growth. Singer notes suggest limited growth. Why is the business not growing?

Speaker #1: We have cleaned up that estate. And with one unified estate, we expect that this will help us increase the conversion rates that our go to market teams take to the market and therefore feed back into more reliable and sustained air oil growth over time.

Kris Shaw: There is continuing investment in products, but this has never been reflected in revenue growth. Singing nodes suggest limited growth. Why is the business not growing?

Kit Kyte: It is a good question. Well, I do not think the business is not growing. I think that would be an incorrect statement. The business is growing at a rate that is sustainable for its current operation. As we have mentioned in this program, one of the hold backs has been, I would suggest, a split of R&D, and indeed go to market focus around too many legacy platforms. We have cleaned up that estate, and with one unified estate, we expect that this will help us increase the conversion rates that our go to market teams take to the market, and therefore feedback into more reliable and sustained ARR growth over time.

Speaker #3: And do you have a problem with liaising with different software systems or your independent of these?

Speaker #1: As I mentioned, as we've mentioned in this program, one of the holdbacks has been, I would suggest, a split of R&D, and indeed go-to-market focus, around too many legacy platforms.

Speaker #1: I'm going to assume that question is some sort of related to the platform and where it sits inside a stack with an enterprise buyer.

Speaker #1: I mean, the short answer is we don't have a problem. We do have different types of customer asking whether they can integrate the Checkit platform into a supply chain management software tool, for example, or a QMS system.

Speaker #1: We have cleaned up that estate. And with one unified estate, we expect that this will help us increase the conversion rates that our market teams take to market, and therefore feed back into more reliable and sustained ARR growth over time.

Speaker #1: And as I mentioned, I think during the presentation, we actually sit in between those large QMS system providers and then those pure hardware providers.

Speaker #2: And do you have a problem with liaising with different software systems? Are you independent of these?

Kris Shaw: And do you have a problem with liaising with different software systems? Are you independent of these?

Speaker #1: So the platform is built particularly the sort of commercial modern platform is built with open API framework. And therefore, this isn't an issue for us going forward.

Speaker #1: I'm going to assume that question is some sort of related to the platform and where it sits inside a stack with an enterprise buyer.

Kit Kyte: I am going to assume that question is some sort of related to the platform and where it sits inside a stack with an enterprise buyer. The short answer is we do not have a problem. We do have different types of customer asking whether they can integrate the Checkit platform into a supply chain management software tool, for example, or a QMS system. As I mentioned, I think during the presentation, we actually sit in between those large QMS system providers and then those pure hardware providers. So the platform is built, particularly the kind of commercial modern platform is built with open API framework, and therefore this is not an issue for us going forward. Increasingly that is going to be the direction of travel, I think, as the landscape evolves.

Speaker #1: And increasing that's going to be the direction of travel, I think, as the landscape evolves.

Speaker #1: I mean, the short answer is we don't have a problem. We do have different types of customers asking whether they can integrate the Checkit platform into a supply chain management software tool, for example, or a QMS system.

Speaker #3: You have shown 12.8 million of ARR today and a two-year strategy designed to produce progressively stronger ARR growth. What level of ARR, EBITDA margin, and cash generation would you regard as successful execution of this strategy two years from now?

Speaker #1: And as I mentioned, I think during the presentation, we actually sit in between those large QMS system providers and those pure hardware providers.

Speaker #3: And how would you support shareholder value materially above the current FSP price?

Speaker #1: So the platform is built, particularly the kind of commercial, modern platform, is built with an OpenAPI framework. Therefore, this isn't an issue for us going forward.

Speaker #1: I mean, so we're not at liberty to discuss the specific numbers. There is obviously guidance out there in the market. But if I refer you back to the two-year framework that we've agreed at the board, this is also been informed by the feedback of, as I said, between 40 and 50 different bidder conversations and quite an enhanced level of due diligence.

Speaker #1: And increasingly, that's going to be the direction of travel, I think, as the landscape evolves.

Speaker #2: You have shown £12.8 million of ARR today and a two-year strategy designed to produce progressively stronger ARR growth. What level of ARR, EBITDA margin, and cash generation would you regard as successful execution of this strategy two years from now?

Kris Shaw: You have shown GBP 12.8 million of ARR to date and a 2-year strategy designed to produce progressively stronger ARR growth. What level of ARR, EBITDA margin, and cash generation would you regard the successful execution of the strategy 2 years from now, and how would you support shareholder value materially above the current FSP price?

Speaker #1: And that's helped us triangulate on the metrics that really matter when one's considering an external proposal, what those bidders in that bidder universe will focus on.

Speaker #2: And how would you support shareholder value materially above the current FSP price?

Speaker #1: And that's why you have to get the balance right between EBITDA, cash generation, and sustained quality revenue growth, not chasing any revenue. That's not interesting to these parties.

Speaker #1: To discuss the specific numbers, there is obviously guidance out there in the market. But if I refer you back to the two-year framework that we've agreed at the Board, this has also been informed by the feedback of, as I said, between 40 and 50 different bidder conversations, and quite an enhanced level of due diligence.

Kit Kyte: We are not at liberty to discuss the specific numbers. There is obviously guidance out there in the market. But if I refer you back to the 2-year framework that we have agreed at the board, this has also been informed by the feedback of, as I said, between 40 and 50 different bidder conversations and quite an enhanced level of due diligence. That has helped us triangulate on the metrics that really matter when one is considering an external proposal, what that bidder universe will focus on. That is why you have to get the balance right between EBITDA cash generation and sustained quality revenue growth, not chasing any revenue. That is not interesting to these parties.

Speaker #1: So we're confident that with that feedback in mind and given where we already got proposals to today, that with continued execution, we're confident we can get those proposals to where we want them to be able to recommend a deal to shareholders, should it arise.

Speaker #1: And that's helped us triangulate on the metrics that really matter when one's considering an external proposal—what those bidders, and that bidder universe, will focus on.

Speaker #3: And final question, how do hardware estates fit into platform unification? For example, will it be two estates with one platform?

Speaker #1: Yeah, I mean, again, to go back to what we said in the presentation, the existing installed medical base, which has currently has its own hardware in place, will carry on with its own hardware in place.

Kit Kyte: So we are confident that with that feedback in mind, and given where we already got proposals to today, with continued execution, we are confident we can get those proposals to where we want them to be able to recommend a deal to shareholders should it arise.

Speaker #1: That hardware to make it simple will be pointed into the new platform. So that's those two, the commercial medical hardware estates will remain as they currently are.

Speaker #1: Going forwards, of course, with a lower cost to serve, we have for net new medical customers, we have the option of bringing in the commercial hardware, which is typically more cost-effective and more user-friendly in terms of self-install.

Speaker #2: And final question. How do hardware estates fit into platform unification? For example, will it be two estates with one platform?

Kris Shaw: And final question, how do hardware estates fit into platform unification? For example, will it be two estates with one platform?

Speaker #1: Yeah. I mean, again, to go back to what we said in the presentation, the existing installed medical base, which currently has its own hardware in place, will carry on with its own hardware in place.

Kit Kyte: Yeah, again, to go back to what we said in the presentation. The existing installed medical base, which currently has its own hardware in place, will carry on with its own hardware in place. That hardware, to make it simple, will be pointed into the new platform. So the commercial medical hardware estates will remain as they currently are. Going forwards, of course, with a lower cost to serve, for net new medical customers, we have the option of bringing in the commercial hardware, which is typically more cost-effective and more user-friendly in terms of self-install. So that becomes just an additional upside when we are thinking about net new customer acquisition.

Speaker #1: So that becomes just an additional upside when we're thinking about net new customer acquisition.

Speaker #2: That's great. Thank you for answering those questions. You can have investors and, of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet Company platform.

Speaker #1: That hardware to make it simple will be pointed into the new platform. So that's those two, the commercial medical hardware estates will remain as they currently are.

Speaker #2: Just before redirecting investors to provide you with their feedback, which in those particularly important to the company, Kit could please just ask you for a few closing comments?

Speaker #1: Going forward, of course, with the lower cost to serve we have for net new medical customers, we have the option of bringing in the commercial hardware, which is typically more cost-effective and more user-friendly in terms of self-install.

Speaker #1: Yes. I mean, look, again, once again, it's been a very long and interesting half so far. But as I said, as we've repeatedly said, the feedback and the learnings from the FSP are actually helping inform the clarity of the strategy in which we're executing.

Speaker #1: So that becomes just an additional upside when we're thinking about net new customer acquisition.

Speaker #1: They've in fact validated a lot of the decisions we've taken. So we remain as optimistic as we have throughout this process on our ability to continue to execute and indeed drive further value for shareholders down the line.

Speaker #3: That's great. Thank you for answering those questions. You can hear from investors, and of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet Company platform.

Operator: That is great. Thank you for answering those questions you have from investors. And of course, the company can review all questions submitted today and will publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Mick, could I please just ask you for a few closing comments?

Speaker #3: Just before redirecting investors to provide you with their feedback, which knows particularly important for company, Kickit updates us ask you for a few closing comments.

Speaker #2: That's great. Thank you for updating investors today. So please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can best understand your views and expectations.

Kit Kyte: Yes. Look, once again, it's been a very long and interesting half so far, but as we've repeatedly said, the feedback and the learnings from the FSP are actually helping inform the clarity of the strategy which we're executing. They've, in fact, validated a lot of the decisions we've taken. We remain as optimistic as we have throughout this process on our ability to continue to execute and indeed drive further value for shareholders down the line.

Speaker #2: This may take a few moments to complete, and I'm sure it'll be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation and good afternoon to you all.

Speaker #1: In fact, validated a lot of the decisions we've taken. So we remain as optimistic as we have throughout this process on our ability to continue to execute and indeed drive further value for shareholders down the line.

Speaker #3: That's great. Thank you for updating investors today. Please ask investors not to close this session, as you are now being automatically redirected to provide your feedback so that the management team can best understand your views and expectations.

Operator: That's great. Thank you for updating investors today. Could I please ask investors not to close this session, as you'll now be automatically redirected to provide your feedback in order that the management team can best understand your views and expectations. This will only take a few moments to complete and I'm sure will be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation and good afternoon to you all.

Speaker #3: This may take a few moments to complete, and I'm sure it'll be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation and good afternoon to you all.

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Half Year 2027 Checkit PLC Earnings Call

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