TIDMCKT
RNS Number : 6214Q
Checkit PLC
22 October 2019
22 October 2019
Checkit plc
Half year results for the six months ended 31 July 2019
Checkit plc (AIM: CKT, "Checkit" or the "Group") has published
its results for the six months ended 31 July 2019 ("the
"Period")
Highlights
CORPORATE
-- Group re-positioned to focus on Software as a Service
("SaaS") business opportunity of Checkit.
-- Following the disposal of Bulgin, Elektron Technology Plc
changed its name to Checkit plc on 24 September 2019
-- Next Control Systems Limited acquired on 14 May 2019 for
GBP8.8m net of cash in the business and renamed Checkit UK Limited
("CUK")
-- Contracts for the disposal of Elektron Technology UK Limited
(owner of the Bulgin business - "Bulgin") exchanged on 31 July 2019
for gross proceeds of GBP105m (GBP94m net of adjustments and
expenses). Completion took place on 24 September 2019, after the
period end
-- Elektron Eye Technology ("EET"), the ophthalmic instruments
business is non core and remains available for sale
-- The Board has announced that it expects to return up to
GBP81m cash to shareholders by way of a tender offer for two
ordinary shares for every three ordinary shares held at 65p per
share. A circular is expected to be issued shortly
-- Capital Markets Day planned for 5 December 2019
BOARD, MANAGEMENT AND HEADCOUNT
-- Existing board members continue as directors: John Wilson
steps down as CEO but remains on the board as a non-executive
director. Keith Daley and Andy Weatherstone remain as Executive
Chair and CFO respectively
-- Board composition will be reviewed after the distribution of
cash to shareholders in light of the reshaped business
-- Active recruitment campaign to strengthen Checkit senior
management team completed with a number of important new hires
-- The Group currently has approximately 190 staff on a full
time equivalent (FTE) basis. As a result it is in a position to
respond to demand that arises and scale its business
significantly
PRODUCT ROADMAP
-- Roll-out of a fully mobile, next generation Work Management app
-- Now generating commercial and operational insights to provide
recommendations for retail application from mobile workflow sales
data analysed by the Checkit Data Pipeline / Business Intelligence
platform
-- Currently in development are capabilities to enable
collaborative checklist working and automated analysis of sensor
and building data
TRADING
-- Following the disposal of Bulgin, we now have complete focus
on Checkit (as enlarged by CUK) which continues to make good
progress
-- Refocus on larger customers
-- A number of important contract wins.
FINANCIAL
-- Results for the period, as expected, characterised by a
number of exceptional items and changes in the composition of the
Group
-- Bulgin's results are classified as discontinued operations in
the interim results. Its profit is shown as net of certain disposal
expenses. The profit on disposal will be shown in the full year
accounts as the transaction completed post the period end
-- Group revenue of GBP4.4m with GBP3.2m generated from Checkit
and GBP1.2m from EET (H1 FY19: GBP0.4m from Checkit and: GBP1.2m
from EET) (FY19: GBP1.0m and GBP2.6m respectively)
-- Operating loss of GBP3.0m (H1 FY19: GBP2.2m) after charging
GBP0.2m CUK acquisition costs and increases in investment in sales
and marketing, product development and other costs
-- LBITDA of GBP1.6m (H1 FY19 GBP1.2m). Cash burn (excluding
acquisition) of GBP3.0m (HY19 GBP1.8m) as planned not least as a
result of heavy expenditure on New Product Development,(NPD), Sales
and Marketing
OUTLOOK
-- Current focus is on integrating CUK and a successful
separation of Bulgin during the period of its Transitional Services
Agreement
-- Full year accounts will show a number of significant
exceptional items (not least the profit on the sale of Bulgin)
relating to the changes in the Group during the year and consequent
reorganisation costs
-- Several opportunities identified to accelerate move towards profitability
-- Many opportunities identified for cross selling and growing the business
-- Management can see a clear route to a strong and profitable business in the medium term
* Figures for continuing operations, except where otherwise
stated and exclude Bulgin which has been reclassified as a
discontinued operation.
Keith Daley, Chairman of Checkit, said:
"In the six months to 31 July 2019 the Group experienced by far
its most significant change since flotation in 1948. It sold
Bulgin, the original bedrock of the Group, to concentrate on the
business of digital transformation through its real-time operations
management platform. We are excited by the opportunities that we
have identified."
For further information:
Checkit plc +44 (0) 1223 371 000
www.checkit.net
Keith Daley (Executive Chairman)
Andrew Weatherstone (Chief Financial Officer & Company
Secretary)
Yellowstone Advisory (Investor Relations)
Alex Schlich
+44 (0) 7710 164 120
N+1 Singer (Nominated Adviser & Broker)
Shaun Dobson / George Tzimas (Corporate Finance) +44 (0) 20 7496
3000
Rachel Hayes (Corporate Broking)
Note to editors:
Checkit's real-time operations management software makes
organisations smart, safe and efficient. Our products use Internet
of Things ("IoT"), mobile and cloud technologies to ensure our
customers get the best out of their mobile teams, processes and
buildings. Checkit users operate in many sectors including Retail,
Hospitality, Healthcare, Real Estate Management and Manufacturing.
Checkit is headquartered in Cambridge, UK with its Operations
Centre in Fleet, UK and a Sales and Service office in California,
USA.
Chairman's statement
INTRODUCTION
Checkit aims to be the leading provider of a new generation of
cloud based real-time operations management services, supporting
human work and automated monitoring (Work Management and IoT for
people/infrastructure/data) and is able to deliver products and
services tailored to our target markets worldwide.
With this in mind, transformation is at the heart of our future
vision. The transformation programme encompasses the oversight of
several tectonic plates - the separation of Bulgin, the integration
of CUK and Checkit, the transition to a new and improved operating
model and ways of working and the transformation of the business to
be a global growth focused powerhouse in real-time operations
management services.
The transformation agenda is at the centre of Checkit's future
vision, in transitioning Checkit to a dynamic software as a service
(SaaS) global business model: A client focused, lean, dynamic,
market driven, service provider, with a suite of globally
accessible work management, IoT, and operational insight based
products and services.
The programme is already aligning all parts of the organisation
towards a single unified agile business operating model. The
transformation plan is primarily focused on the 'separation',
'integration' and 'transition to our new ways of working' during
the next 12 months (aligned to the Transitional Services Agreement
with the buyer of Bulgin) by which time it is expected that our
end-state future model for Checkit will be fully operational. This
transition agenda is underpinned by strategic imperatives for FY
2019-20 and FY 2020-21 focusing on; transforming the business
whilst importantly maintaining existing business as usual and
establishing a single operating platform to act as a springboard
for an aggressive global growth plan.
The Checkit transformation strategy will be realised through the
focus on our strategic imperatives, all of which are designed to
integrate the merged organisations into a new business designed
with scalability and global growth in mind. The strategic
imperatives include: Repositioning the entire business to a SaaS
model, accelerating growth, assuming financial control, maintaining
a suite of quality products and services, ensuring safety and
compliance and aiming for a higher corporate purpose, all of which
are underpinned by a largely new management team, working together
to drive the business forward and to apply effective governance and
control across the business. Our transformation strategy is live
and delivering some early quick wins.
CORPORATE
In May 2019 Checkit acquired CUK, for a cash consideration of
GBP10.5m, inclusive of GBP1.7m of cash in CUK as at the date of
completion. The price represented a multiple of 6.6X 2018 EBITDA.
CUK is an excellent strategic fit for Checkit, providing technology
and software that enables management teams to monitor, control and
optimise business processes. This was a transformational deal for
Checkit, immediately adding scale and one which the Board believes
will accelerate the path to profitability.
As a result of the acquisition Checkit is now a leader in
high-end service based temperature monitoring for healthcare and
life sciences within the UK under its Tutela brand. In addition,
through its Next and Axon brands it provides data related Building
Energy Management System ("BEMS") services. The acquisition
provides opportunities for further sales growth and improvements to
operational capabilities by:
-- Cross-selling Checkit's Work Management product to CUK's customer base
-- Diversifying that customer base and extend the offering
across additional sectors alongside the food service sector (which
was previously predominant in Checkit)
-- Enhancing Checkit's existing range of sensors
-- Improving operational capability
-- Bringing domain knowledge of the BEMS market
CUK has performed in line with expectations since acquisition
and we are pleased with the progress made in integrating the
business and in the opportunities for cross selling.
In July 2019 we announced the disposal of Bulgin, our then
largest business, for the sum of GBP105 million (GBP94 million net
of expenses). As a result of the development of both Bulgin and
Checkit, the Board had concluded that it was no longer appropriate
to maintain a Group consisting of two businesses with different
activities namely manufacturing and SaaS. It had already received
an approach from a third party, as announced in February 2019,
which valued Bulgin at a substantial premium to the then market
capitalisation for the whole Group. This transaction leaves EET as
the last asset for disposal.
Following the period end, the Group changed its name from
Elektron Technology Plc to Checkit plc and shortly expects to issue
a circular in connection with a General Meeting at which
shareholders will be asked to approve the return of GBP81 million
cash via a tender offer for two out of every three shares currently
held. This is expected to leave the Group with approximately GBP14
million cash to enable it to develop the Checkit business.
BOARD, MANAGEMENT AND HEADCOUNT
The board members all remained in place during the period.
Following the disposal of Bulgin in September 2019 John Wilson
stepped down from the board as CEO but remains as a non-executive
director in order to allow the Group to benefit from his commercial
and engineering expertise. It has been an absolute pleasure to work
with John over the past 11 years. During that time the Group has
been transformed into an engine for the creation of shareholder
value. The achievements are in no small way due to him.
The remaining board members continue in their positions and
roles. Andy Weatherstone and I continue to be responsible for
running Checkit along with the Checkit Executive Leadership Team
("ELT"). Following the return of cash to shareholders it is
intended that the composition of the board will be reviewed with a
view to increasing the level of software expertise and
capabilities.
As a result of the disposal and the consequent departure of a
number of senior managers with Bulgin, it has been necessary to
engage in an intense period of recruitment to ensure that the ELT
is of sufficient calibre to ensure that the Group is able to take
advantage of the many opportunities facing it. That recruitment
process is complete and we now have high quality leaders
specialising in Operations, Sales, Product Management and
Marketing, Product Development, HR, Finance and Organisational
Transformation.
Special thanks go to Andy Bridger, former Managing Director
('MD') of CUK and our new Chief Operating Officer for the enlarged
business. Andy has held the organisation together whilst the
Checkit main board has been occupied with the Bulgin transaction.
It is often not easy for an MD to be on the receiving end of an
acquisition and accept the inevitable changes that need to be made
but Andy has managed that transition with good grace and
enthusiasm.
At time of writing there are around 190 employees in the Group
(including EET) of which around 100 are involved in providing the
Checkit service to customers from our Operations Centre in Fleet,
Hampshire, 30 are involved in Checkit software and new product
development and 26 are in Checkit sales and marketing. The business
is well equipped to scale up.
PRODUCT ROADMAP
Checkit's products make organisations smart, safe and efficient.
We use Internet of Things (IoT), mobile and cloud technologies to
ensure our customers get the best out of their mobile teams,
processes and buildings. We continue to invest in product
development, innovating to solve our customers' challenges while
improving
customer service and efficiency. Key developments in the period include:
People / processes - we have begun rolling out our new Work
Management app for Android to key customers. This expands the
potential use of Checkit from its starting point within buildings
to mobile and distributed workforces. The new app gives access to
an increasing range of functions. It has made it possible for users
to capture additional data needed to automate and simplify their
work such as bar codes and photographs, and introduces the concept
of delivering work to users based on physical location. We have
also introduced the ability to distribute work instructions and
documentation to workers through the app to provide easy access to
relevant information as work is done. We are now testing a further
step change in functionality, allowing users to work
collaboratively in real time on checklists and processes.
With the acquisition of CUK, we now have increased access to
knowledge and customers in a wider range of industries, and we are
building checklists and applications for use in healthcare,
scientific and building management applications as part of a
broader cross-selling initiative. We have developed functionality
that allows these new checklists to be treated as reusable
libraries and templates to speed up the build of future
solutions
Monitoring and controlling real world "things" - we have
significantly increased the scope of our ability to monitor
convenience retail and food service operations through the creation
of what we believe to be a market leading, self-contained wireless
temperature sensor able to be used in the hot shelves used to keep
ready to go food warm and safe. This is an example of collaborating
with major multinational organisations to develop and prove
functionality unavailable elsewhere. In addition we have added a
new layer of system monitoring and alarming to our cloud platform
to allow customers and Checkit service teams to view and analyse
network or service issues, improving visibility and service quality
assurance.
Analysing and exploiting data - We have worked with market
leaders to turn data from routine worker operations into valuable
commercial insights. We have created analysis and dashboards to
give insights into capacity planning and product availability in
retail operations, delivered through a new release of business
intelligence that is now to be embedded in our web application.
This will mean Checkit is not only enforcing and guiding routine
compliance processes to reduce risk and cost, it is also providing
direct information to support revenue generation. Elsewhere we are
developing rules based analytics to apply to sensor and building
energy / operational information designed to help managers find and
act on problems quickly and automatically.
TRADING
Checkit segments the market by sector and size of participating
businesses. It views the market as being divided into four tiers by
size (T1, T2, T3 and T4). During the period it made adjustments to
its approach to the targeted customer base by:
-- Increasing the focus on the largest national and
multinational customers (T1). It is clear from our engagement with
this category of customer that the Checkit offering is attractive
to this market segment which we estimate will account for
approximately 50% of the eventual market.
-- Targeting only those T2 customers that are willing and able
to pay for the solution. This has inevitably led to a reduction in
activity amongst the distressed casual dining sector in the UK, our
initial market entry point selected as a result of previous
experience in this sector significantly lowering the barrier to
entry.
-- Ceasing to market actively to "hard-to-reach" T3 and T4
customers (generally single site SMEs)
Although senior management was preoccupied with the sale of
Bulgin during the period there were a number of notable contract
wins including those involving:
-- A multi-branch leisure business using work management for
front and back of house activities
-- A major project to save energy at the UK's leading department
store as part of a carbon footprint reduction project
-- A building management system on a university campus again as
part of a carbon footprint reduction project
Checkit is now operational in some shape or form at 165 UK
hospitals where there is potential to greatly expand its use.
Discussions continue with T1 US customers although progress has
been slow we continue to believe that the US will provide good
growth opportunities in the medium term. To date there has been
total focus on the food service sector which has some of the
undesirable economic characteristics found in the UK. The task now
is to broaden the sales and marketing effort to other market
sectors as has happened in the UK.
Checkit has multi-language capability widening its geographical
reach and as a result we hope to sign a multi-branch contract with
a customer based in mainland Europe shortly.
FINANCIAL
The results for the six months to 31 July reflect approximately
two and half months of trading of CUK. Bulgin has been treated as a
discontinued item. Comparatives have been restated where
appropriate. The movement in results in the first half compared to
those of the prior year is set out below:
GBPm GBPm
Operating profit half year to 31 July 2018-as previously
stated 1.4
Bulgin profits-reclassified as discontinued (3.6)
--------------------------------------------------------- ----- -----
Restated (2.2)
Add:
CUK profits from 14 May 2018 0.2
Impact of increased sales in existing Checkit business 0.2
EET increase in profits 0.1
--------------------------------------------------------- ----- -----
0.5
Deduct:
Increased allocation of central shared services (0.3)
Increased spend on sales and marketing (0.4)
Increase in product development expensed (0.2)
Deferred costs of equipment in Checkit expensed (0.2)
--------------------------------------------------------- ----- -----
(1.1)
--------------------------------------------------------- ----- -----
Operating profits before non-recurring or special items (2.8)
Acquisition costs of CUL (0.2)
--------------------------------------------------------- ----- -----
Operating loss half year to 31 July 2019 (3.0)
--------------------------------------------------------- ----- -----
Checkit total revenues include a GBP2.6m contribution from CUK,
in line with expectations and GBP0.6m from existing Checkit
business, a growth of 50% over the same period last year.
Losses increased following plans to intensify investment in both
developing the market and the product roadmap. In addition the
Group reappraised its allocation of the shared service cost of the
Group resulting in an increased share of Executive human resources
and information technology support costs. In the short term we
expect costs to rise as a new management structure is implemented
across the combined business to allow integration and growth plans
to be accelerated, both of which should lead to improved efficiency
and reduced operating costs in the longer term.
EET profitability improved marginally on static sales. However
sales in the second half are expected to be lower than the prior
year.
During the period the Group implemented IFRS16 which introduced
right of use and lease liabilities on its balance sheet, this did
not have a material impact on either reported results or net assets
of the Group.
The Group also has conducted an initial review of the fair
values of assets of CUK acquired and this has resulted in goodwill
of GBP5.3m being recognised.
Net cash balances at 31 July were GBP1.5m compared to GBP10.1m
at the end of January 2019, the main outflows being the acquisition
of CUK (GBP9m), part payment of fees in connection with the sale of
Bulgin (GBP0.4m) and the settlement of legal disputes and property
dilapidations (GBP0.4m), Based on current plans the Board believes
it has sufficient resources, post the return of cash to
shareholders to be able to deliver its plans for growth. Post
return of cash the Group expects to have approximately GBP14m of
cash.
OUTLOOK
There will be a Capital Markets Day in London on Thursday 5th
December 2019 focussing on the Checkit products, customers and
operations. Please contact kate@yellowstoneadvisory.com for further
information.
The current focus is on integrating CUK and a successful
separation of Bulgin during the 12 months transitional services
period. Whilst this is a complex task we have made a good start.
The full year accounts will show a large number of exceptional
items relating to the changes in the Group during the year and
consequential reorganisation costs.
We have already identified several opportunities for improvement
of profitability. Our focus is on the tremendous opportunity we are
working to realise in the medium to long term and so it is
important here to ensure that any measures taken in the short term
do not stifle growth. We therefore intend to continue our
investment in new product development and sales and marketing with
a view to increasing our competitive advantage and growing revenue.
Management is targeting EBITDA profitability in the medium
term.
Many opportunities have been identified for cross selling and
growing the business leveraging CUK capabilities and customer
base.
In short we believe that the future is bright.
Keith Daley
Chairman
22 October 2019
Consolidated statement of comprehensive income
Unaudited interim results to 31 July 2019
Unaudited Unaudited
Half year Half year Audited
to to Year to
31 July 31 July 31 January
2019 2018 2019
GBPm GBPm GBPm
------------------------------------------------ ---------- ----------- -----------
Revenue (Note 2) 4.4 1.6 3.6
Cost of sales (3.0) (0.9) (1.9)
------------------------------------------------ ---------- ----------- -----------
Gross profit 1.4 0.7 1.7
Operating expenses
------------------------------------------------ ---------- ----------- -----------
Net operating expenses (excluding non-recurring
or special items) (4.2) (2.9) (6.1)
Operating loss before non-recurring or special
items (Note 2) (2.8) (2.2) (4.4)
Non-recurring or special items (Note 3) (0.2) - -
------------------------------------------------ ---------- ----------- -----------
Total operating expenses (4.4) (2.9) (6.1)
------------------------------------------------ ---------- ----------- -----------
Operating loss (Note 2) (3.0) (2.2) (4.4)
Finance expense - - -
------------------------------------------------ ---------- ----------- -----------
Loss before taxation (3.0) (2.2) (4.4)
Taxation (Note 4) - - (0.1)
------------------------------------------------ ---------- ----------- -----------
Loss from continuing operations (3.0) (2.2) (4.5)
Profit from discontinued operations (Note 5) 1.3 3.2 8.6
------------------------------------------------ ---------- ----------- -----------
(Loss)/profit for the period attributable to
equity shareholders (1.7) 1.0 4.1
------------------------------------------------ ---------- ----------- -----------
Other comprehensive expense
Currency translation differences on foreign
currency net investments 0.5 - (0.7)
------------------------------------------------ ---------- ----------- -----------
Total other comprehensive income/(expense) 0.5 - 3.4
------------------------------------------------ ---------- ----------- -----------
Total comprehensive income/(expense) for the
period attributable to equity shareholders (1.2) 1.0 3.4
------------------------------------------------ ---------- ----------- -----------
Earnings/(loss) per share (Note 6)
- Basic and diluted EPS
Continuing (1.7)p (1.3)p (2.5)p
Discontinued 0.7p 1.9p 4.8p
------------------------------------------------ ---------- ----------- -----------
Total (1.0)p 0.6p 2.3p
------------------------------------------------ ---------- ----------- -----------
The accompanying notes form an integral part of this
consolidated interim financial information.
* See Note 5.
Consolidated balance sheet
Unaudited at 31 July 2019
Unaudited Unaudited Audited
31 July 31 July 31 January
2019 2018 2019
GBPm GBPm GBPm
--------------------------------------------- --------- --------- -----------
Assets
Non-current assets
Capitalised development costs 2.5 2.5 2.6
Goodwill arising on acquisition 5.3 - -
Other intangible assets 2.8 0.3 0.3
Property, plant and equipment 1.3 1.5 1.7
Deferred tax asset - 0.6 0.4
--------------------------------------------- --------- --------- -----------
Total non-current assets 11.9 4.9 5.0
--------------------------------------------- --------- --------- -----------
Current assets
Inventories 2.0 4.0 4.3
Trade and other receivables 3.1 5.1 5.1
Asset held for sale 4.8 - -
Cash and cash equivalents 1.5 6.8 10.1
--------------------------------------------- --------- --------- -----------
Total current assets 11.4 15.9 19.5
--------------------------------------------- --------- --------- -----------
Total assets 23.3 20.8 24.5
--------------------------------------------- --------- --------- -----------
Current liabilities
Trade and other payables 6.5 5.9 6.6
Lease Liabilities 0.5 - -
Provisions - 0.2 1.0
Current tax payable 0.1 0.5 0.3
--------------------------------------------- --------- --------- -----------
Total current liabilities 7.1 6.6 7.9
--------------------------------------------- --------- --------- -----------
Non-current liabilities
Long-term provisions 0.2 0.3 0.3
Lease liabilities 0.5 - -
Deferred tax 0.4 - -
Total non-current liabilities 1.1 0.3 0.3
--------------------------------------------- --------- --------- -----------
Total liabilities 8.2 6.9 8.2
--------------------------------------------- --------- --------- -----------
Net assets 15.1 13.9 16.3
--------------------------------------------- --------- --------- -----------
Equity attributable to equity holders of the
parent
Called-up share capital 9.3 9.3 9.3
Share premium 5.4 5.4 5.4
Merger reserve 1.1 1.1 1.1
Capital redemption reserve 0.2 0.2 0.2
Own shares (1.8) (1.9) (1.9)
Other reserves 0.8 0.8 0.8
Translation reserve (1.7) (1.5) (2.2)
Retained earnings 1.8 0.5 3.6
--------------------------------------------- --------- --------- -----------
Total equity 15.1 13.9 16.3
--------------------------------------------- --------- --------- -----------
The accompanying notes form an integral part of this
consolidated interim financial information.
Consolidated statement of changes in equity
Unaudited interim results to 31 July 2019
Capital
Share Share Merger redemption Own Other Translation Retained
capital premium reserve reserve shares reserves reserve earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
At 1 February 2018 9.3 5.4 1.1 0.2 (1.9) 0.8 (1.5) (0.5) 12.9
Profit for the period - - - - - - - 1.0 1.0
Currency translation
differences
on foreign currency net
investments - - - - - - - - -
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
Total comprehensive
income
for the period - - - - - - - 1.0 1.0
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
At 31 July 2018 9.3 5.4 1.1 0.2 (1.9) 0.8 (1.5) 0.5 13.9
Profit for the period - - - - - - - 3.1 3.1
Currency translation
differences
on foreign currency net
investments - - - - - - (0.7) - (0.7)
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
Total comprehensive
income/(expense)
for the period - - - - - - (0.7) 3.1 2.4
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
At 1 February 2019 9.3 5.4 1.1 0.2 (1.9) 0.8 (2.2) 3.6 16.3
Effect of initial
adoption
of IFRS16 - - - - - - - (0.1) (0.1)
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
Restated balances as at
1 February 2019 9.3 5.4 1.1 0.2 (1.9) 0.8 (2.2) 3.5 16.2
Loss for the period - - - - - - - (1.7) (1.7)
Share based payments - - - - 0.1 - - - 0.1
Currency translation
differences
on foreign currency net
investments - - - - - - 0.5 - 0.5
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
Total comprehensive
(expense)/income
for the period - - - - 0.1 - 0.5 (1.7) (1.1)
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
At 31 July 2019 9.3 5.4 1.1 0.2 (1.8) 0.8 (1.7) 1.8 15.1
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
The own shares are held by the Elektron Technology 2012 Employee
Benefit Trust.
The accompanying notes form an integral part of this
consolidated interim financial information.
Consolidated statement of cash flows
Unaudited interim results to 31 July 2019
Unaudited Unaudited
Half year Half year Audited
to to Year to
31 July 31 July 31 January
2019 2018 2019
GBPm GBPm GBPm
------------------------------------------------------ ---------- ---------- -----------
Net cash flows from operating activities
(Loss)/profit before taxation
- From continuing operations (3.0) (2.2) (4.4)
- From discontinued operations 1.8 3.5 9.4
Adjustments for:
Non-recurring items-continuing 0.2 - -
Depreciation charge 0.9 0.2 0.4
Amortisation of capitalised development costs
and other intangibles 0.8 1.0 1.8
Interest payable- discontinued operations 0.1 - -
(Gain)/loss on disposal of discontinued operations - 0.1 (0.4)
------------------------------------------------------ ---------- ---------- -----------
Operating cash flows before working capital
changes and non-recurring or special items 0.8 2.6 6.8
(Increase)/decrease in trade and other receivables (0.5) (0.6) (0.2)
Increase in inventories (0.1) - (0.6)
Increase/(decrease) in trade payables 2.5 (0.3) -
------------------------------------------------------ ---------- ---------- -----------
Operating cash flow after working capital changes 2.7 1.7 6.0
(Decrease)/increase in provisions (0.4) - 0.3
------------------------------------------------------ ---------- ---------- -----------
Cash generated by operations 2.3 1.7 6.3
Acquisition costs (0.2) - -
Tax paid (0.3) - (0.5)
------------------------------------------------------ ---------- ---------- -----------
Net cash generated from operating activities 1.8 1.7 5.8
------------------------------------------------------ ---------- ---------- -----------
Investing activities
Purchase of property, plant and equipment (0.2) (0.2) (0.7)
Purchase of business (8.8) - -
Capitalisation of development costs (0.7) (0.7) (1.5)
Disposal of business - 0.8 1.3
------------------------------------------------------ ---------- ---------- -----------
Net cash (used in)/generated from investing
activities (9.7) (0.1) (0.9)
------------------------------------------------------ ---------- ---------- -----------
Cash flows from financing activities
Interest paid on contract lease liabilities (0.1) - -
Decrease in contract lease liabilities (0.6) - -
------------------------------------------------------ ---------- ---------- -----------
Net cash used in financing activities (0.7) - -
------------------------------------------------------ ---------- ---------- -----------
Net (decrease)/ increase in cash and cash equivalents (8.6) 1.6 4.9
Cash and cash equivalents at the beginning
of the period 10.1 5.2 5.2
------------------------------------------------------ ---------- ---------- -----------
Cash and cash equivalents at the end of the
period 1.5 6.8 10.1
------------------------------------------------------ ---------- ---------- -----------
The accompanying notes form an integral part of this
consolidated interim financial information.
Notes to the unaudited interim results
to 31 July 2019
1. Accounting policies
The interim financial information has been prepared on the basis
of International Financial Reporting Standards (IFRS) as adopted by
the European Union. Full details of accounting policies are
included in the Annual Report for the year ended 31 January 2019.
Fixed annual charges are apportioned to the interim period on the
basis of time elapsed. Other expenses unless disclosed otherwise
are accrued in accordance with the same principles used in the
preparation of the annual accounts.
The Group has not applied IAS 34 "Interim Financial Reporting",
which is not mandatory for UK groups, in the preparation of these
interim financial statements.
2. Changes in accounting policies - IFRS 16
In the current year, the Group, for the first time, has applied
IFRS 16. The date of initial application of IFRS 16 for the Group
is 1 February 2019.
IFRS 16 introduces new or amended requirements with respect to
lease accounting. It introduces significant changes to the lessee
accounting by removing the distinction between operating and
finance lease, requiring the recognition of a right-of-use asset
and a lease liability at commencement for all leases, except for
short-term leases and leases of low value assets.
The Group is not party to any material leases where it acts as a
lessor, but the Group does have a large number of material property
and equipment leases.
Details of the Group's accounting policies under IFRS 16 are set
out below, followed by a description of the impact of adopting IFRS
16. Significant judgements applied in the adoption of IFRS 16
included determining the lease term for those leases with
termination or extension options and determining an incremental
borrowing rate where the rate implicit in a lease could not be
readily determined.
Accounting policies under IFRS 16 Leases
The Group assesses whether a contract is or contains a lease, at
inception of the contract. The Group recognises a right-of-use
asset and a corresponding lease liability with respect to all lease
arrangements in which it is the lessee, except for short-term
leases (defined as leases with a lease term of 12 months or less)
and leases of low value assets. For these leases, the Group
recognizes the lease payments as an operating expense on a
straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in
which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value
of the lease payments that are not paid at the commencement date,
discounted by using the rate implicit in the lease. If this rate
cannot be readily determined, the Group uses its incremental
borrowing rate.
Lease payments included in the measurement of the lease
liability comprise:
-- fixed lease payments (including in substance fixed payments), less any lease incentives;
-- variable lease payments that depend on an index or rate,
initially measured using the index or rate at the commencement
date;
-- the amount expected to be payable by the lessee under residual value guarantees;
-- the exercise price of purchase options, if the lessee is
reasonably certain to exercise the options;
-- Payments of penalties for terminating the lease, if the lease
term reflects the exercise of an option to terminate the lease.
The lease liability is presented as a separate line in the
consolidated statement of financial position.
The lease liability is subsequently measured by increasing the
carrying amount to reflect interest on the lease liability (using
the effective interest method) and by reducing the carrying amount
to reflect the lease payments made.
In addition the Group re-measures the lease liability (and makes
a corresponding adjustment to the related right-of-use asset)
whenever:
-- the lease term has changed or there is a change in the
assessment of exercise of a purchase option, in which case the
lease liability is re-measured by discounting the revised lease
payments using a revised discount rate;
-- the lease payments change due to changes in an index or rate
or a change in expected payment under a guaranteed residual value,
in which cases the lease liability is re-measured by discounting
the revised lease payments using the initial discount rate (unless
the lease payments change is due to a change in a floating interest
rate, in which case a revised discount rate is used);
-- a lease contract is modified and the lease modification is
not accounted for as a separate lease, in which case the lease
liability is re-measured by discounting the revised lease payments
using a revised discount rate.
The Group did not make any such adjustments during the periods
presented.
The right-of-use assets comprise the initial measurement of the
corresponding lease liability, lease payments made at or before the
commencement day and any initial direct costs. They are
subsequently measured at cost less accumulated depreciation and
impairment losses.
Right-of-use assets are depreciated over the shorter period of
lease term and useful life of the underlying asset. If a lease
transfer's ownership of the underlying asset or the cost of the
right-of-use asset reflects that the Group expects to exercise a
purchase option, the related right-of-use asset is depreciated over
the useful life of the underlying asset. The depreciation starts at
the commencement date of the lease. The Group does not have any
leases that transfer ownership of the underlying asset. The Group
does not have any leases with a purchase option where there is a
reasonable expectation that the option will be exercised.
The right-of-use assets are presented within the same line item
as that within which the corresponding underlying assets would be
presented if they were owned - for the Group this is property,
plant and equipment.
For short-term leases (lease term of 12 months or less) and
leases of low-value assets (such as personal computers and office
furniture), the Group has opted to recognise a lease expense on a
straight-line basis as permitted by IFRS 16. This expense is
presented within the consolidated income statement.
Approach to transition
The Group has applied IFRS 16 using the modified retrospective
approach, without restatement of the comparative information. In
respect of those leases the Group previously treated as operating
leases, the Group has elected to measure its right of use assets
arising from property leases using the approach set out in IFRS
16.C8(b)(i). Under IFRS 16.C8(b)(i) right of use assets are
calculated as if the Standard applied at lease commencement, but
discounted using the borrowing rate at the date of initial
application.
The Group's weighted average incremental borrowing rate applied
to lease liabilities as at 1 February 2019 is 3%.
Practical expedients adopted on transition
The Group has made use of the practical expedient available on
transition to IFRS 16 not to reassess whether a contract is or
contains a lease. Accordingly, the definition of a lease in
accordance with IAS 17 and IFRIC 4 will continue to be applied to
those leases entered into or modified before 1 January 2019.
As part of the Group's adoption of IFRS 16 and application of
the modified retrospective approach to transition, the Group also
elected to use the following practical expedients:
- a single discount rate has been applied to portfolios of
leases with reasonably similar characteristics;
- right-of-use assets have been adjusted by the carrying amount
of onerous lease provisions at 31 December 2018 instead of
performing impairment reviews under IAS 36;
- exclusion of initial direct costs from the measurement of the
right-of-use asset at the date of initial application;
- non-lease components have not been separated from lease
components, and instead both components have been treated as a
single component for the purpose of accounting under IFRS 16;
and
- hindsight has been used in determining the lease term.
The impact of adopting IFRS16 is set out in note 8
2. Segmental reporting - continuing operations
Revenues
Half year Half year
to to Year to
31 July 31 July 31 January
2019 2018 2019
Geographic GBPm GBPm GBPm
--------------- --------- --------- -----------
United Kingdom 3.8 1.1 2.8
Rest of world 0.6 0.5 0.8
Total 4.4 1.6 3.6
--------------- --------- --------- -----------
Half year Half year
to to Year to
31 July 31 July 31 January
2019 2018 2019
Product segment GBPm GBPm GBPm
---------------- --------- --------- -----------
Checkit 3.2 0.4 1.0
EET 1.2 1.2 2.6
---------------- --------- --------- -----------
Total 4.4 1.6 3.6
---------------- --------- --------- -----------
Operating (loss)/profit before non-recurring or special
items
Half year Half year
to to Year to
31 July 31 July 31 January
2019 2018 2019
Product segment GBPm GBPm GBPm
---------------- --------- --------- -----------
Checkit (2.9) (2.2) (4.5)
EET 0.1 - 0.1
---------------- --------- --------- -----------
Total (2.8) (2.2) (4.4)
---------------- --------- --------- -----------
Operating (loss)/profit
Half year Half year
to to Year to
31 July 31 July 31 January
2019 2018 2019
Product segment GBPm GBPm GBPm
---------------- --------- --------- -----------
Checkit (3.1) (2.2) (4.5)
EET 0.1 - 0.1
---------------- --------- --------- -----------
Total (3.0) (2.2) (4.4)
---------------- --------- --------- -----------
3. Non-recurring or special items
Non-recurring or special items are disclosed separately to
improve visibility of the underlying business performance.
Management has defined such items as costs associated with
acquisition of businesses restructuring, site closure costs,
acquisition costs and other non-recurring items incurred outside
the normal course of business.
Half year Half year
to to Year to
31 July 31 July 31 January
2019 2018 2019
GBPm GBPm GBPm
--------------------- --------- --------- -----------
Non-cash items
Costs of acquisition (0.2) - -
--------------------- --------- --------- -----------
4. Taxation
The tax charge on profit from continuing operations before
taxation has been estimated at GBPNil (July 2018: GBPNil; January
2019: GBP0.1m).
5. Discontinued operations
Discontinued operations in the prior full and half-year results
comprised Queensgate Nano which was sold subsequent to 31 January
2018 on 15 February 2018. In the current period Bulgin, whose sale
was completed on the 24th September 2019 (see post balance sheet
note 9 for further information) is classified as discontinued. The
prior year balances have been restated where required.
Half year Half year
to to Year to
31 July 31 July 31 January
2019 2018 2019
GBPm GBPm GBPm
--------------------------------------------- --------- --------- -----------
Profit before tax 4.1 3.6 9.0
Attributable tax (0.5) (0.3) (0.7)
--------------------------------------------- --------- --------- -----------
Profit after tax 3.6 3.3 8.3
Committed costs of disposal incurred prior
to completion-Bulgin (2.3) - -
(Loss)/profit on disposal-Queensgate Nano - (0.1) 0.4
Attributable tax on disposal-Queensgate Nano - - (0.1)
--------------------------------------------- --------- --------- -----------
Total 1.3 3.2 8.6
--------------------------------------------- --------- --------- -----------
Bulgin
The results of the Bulgin discontinued operation, which have
been included in the consolidated statement of comprehensive
income, were as follows:
Half year Half year
to to Year to
31 July 31 July 31 January
2019 2018 2019
GBPm GBPm GBPm
----------------------------------- --------- --------- -----------
Revenue 15.2 14.3 30.1
Expenses (11.0) (10.7) (21.1)
Interest paid on lease liabilities (0.1) - -
----------------------------------- --------- --------- -----------
Profit before tax 4.1 3.6 9.0
Attributable tax (0.5) (0.3) (0.7)
----------------------------------- --------- --------- -----------
Profit from discontinued operation 3.6 3.3 8.3
----------------------------------- --------- --------- -----------
During the period, Bulgin generated GBP4.1m (H1 FY19: GBP2.9m
FY19 GBP8.6m) of the Group's net operating cash flows, paid less
than GBP0.1m (H1 FY19: GBP0.3m; FY19 GBP0.8m) in respect of
investing activities and paid GBP0.1m (H1 FY19: less than GBP0.1m;
FY19 less than GBP0.1m) in respect of financing activities.
At 31 July the following assets relating to the Bulgin business
were reclassified as assets held for sale:
GBPm
Tangible fixed assets 5.1
Intangible fixed
assets 0.2
Deferred tax asset 0.3
------------------------------ -----
Fixed assets 5.6
Inventory 3.3
Trade and other receivables 4.8
Trade and other payables (4.2)
Current tax payable (0.3)
Contract lease liabilities (3.7)
Provisions (0.7)
------------------------------ -----
Assets held for sale 4.8
------------------------------ -----
6. Earnings per share
Earnings per share (EPS) is the amount of post-tax profit
attributable to each share (excluding those held in the Employee
Benefit Trust or by the Company). Basic EPS measures are calculated
as the Group profit for the period attributable to equity
shareholders divided by the weighted average number of shares in
issue during the period. Diluted EPS takes into account the
dilutive effect of all outstanding share options priced below the
market price, in arriving at the number of shares used in its
calculation. However, in this case as set out in IAS33, the
potential ordinary shares cannot be treated as dilutive as their
conversion to ordinary shares would decrease loss per share from
continuing operations, resulting in basic and diluted measures
being the same.
An adjusted measure to remove the effects of non-recurring or
special items is also shown below.
31 July 31 July 31 January
2019 2018 2019
Key Million Million Million
------------------------------------------- ---- -------- -------- ----------
Weighted average number of ordinary shares
for the purposes of basic earnings per
share A 178.3 178.0 177.7
31 July 31 July 31 January
2019 2018 2019
(Loss)/earnings for the period Key GBPm GBPm GBPm
---------------------------------------------- ---- ------- ------- ----------
(Loss)/earnings for the period B (1.7) 1.0 4.1
(Profit)/loss from discontinued operations,
net of tax C (1.3) (3.2) (8.6)
---------------------------------------------- ---- ------- ------- ----------
Continuing loss for the period D (3.0) (2.2) (4.5)
Total non-recurring or special items included
in profit before tax 0.2 - -
Total non-recurring or special items in
taxation - - -
---------------------------------------------- ---- ------- ------- ----------
Continuing (loss)/earnings adjusted for
EPS E (2.8) (2.2) (4.5)
---------------------------------------------- ---- ------- ------- ----------
31 July 31 July 31 January
Key 2019 2018 2019
-------------------------------------- ------ ------- ------- ----------
EPS measures
Basic and diluted continuing D/A (1.7)p (1.3)p (2.5)p
Basic and diluted discontinued (C)/A 0.7p 1.9p 4.8p
-------------------------------------- ------ ------- ------- ----------
Basic total B/A (1.0)p 0.6p 2.3p
-------------------------------------- ------ ------- ------- ----------
Adjusted EPS measures
Adjusted basic and diluted continuing E/A (1.6)p (1.3)p (2.5)p
-------------------------------------- ------ ------- ------- ----------
7 Acquisition
Acquisition of Next Control Systems Limited
On 14 May 2019 the Group acquired 100% of the equity of Next
Control Systems Limited (renamed Checkit UK Limited "CUK") a UK
based business.
The acquisition was made to enhance the Group's position as a
SaaS provider of work management and monitoring solutions expanding
into the building energy management and healthcare sectors.
The details of the business combination as follows:
Fair value of consideration
transferred
GBPm
Amount settled in cash 10.5
------------------------------------------- ---------- ----------------- ----------------------
Recognised amounts
of identifiable
net assets
Property, plant and equipment 0.4
Development costs capitalised 0.2
Other intangibles 2.5
------------------------------------------- ---------- ---------------------------------- -----
Total non-current assets 3.1
Inventories 0.9
Trade and other receivables 2.1
Cash and cash equivalents 1.7
------------------------------------------- ---------- ---------------------------------- -----
Total current assets 4.7
Lease liabilities (0.1)
Trade and other payables (1.9)
------------------------------------------- ---------- ---------------------------------- -----
Total current liabilities (2.0)
Lease liabilities (0.2)
Deferred tax liabilities (0.4)
------------------------------------------- ---------- ---------------------------------- -----
Total non-current liabilities (0.6)
------------------------------------------- ---------- ---------------------------------- -----
Identifiable net assets 5.2
------------------------------------------- ---------- ---------------------------------- -----
Goodwill on acquisition 5.3
------------------------------------------- ---------- ---------------------------------- -----
Consideration transferred
settled in cash 10.5
Cash and cash equivalents
acquired (1.7)
------------------------------- ---------------------- ---------------------------------- -----
Net cash outflow on
acquisition 8.8
------------------------------- ---------------------- ---------------------------------- -----
Consideration transferred
The acquisition of CUK was settled in cash amounting to
GBP10.5m. Acquisition-related costs amounting to GBP0.2m were
expensed and treated as a non-recurring item.
Identifiable net assets
The provisional fair value of the trade and other receivables
acquired as part of the business combination amounted to GBP2.1m,
with a gross contractual amount of GBP2.1m. As of the acquisition
date, the Group's best estimate of the contractual cash flow not
expected to be collected amounted to less than GBP0.1m.
Goodwill and separable intangible assets
Goodwill is primarily related to the core growth expectations,
expected future profitability and expected cost synergies. Goodwill
has been allocated to the Checkit segment and is not expected to be
deductible for tax purposes. Provisional fair values have been
assigned to the value of key customer relationships.
Provisional fair values.
The fair values of the assets acquired reflect the Board's best
estimates of their value at the date of this statement. The Board
has yet to complete its full valuation work in this regard and
these provisional values are subject to amendment in the Group's
audited results for the year ended 31 January 2020.
CUK's contribution to the Group results
CUK generated a profit of GBP0.2m for the period from 14 May
2019 to the reporting date. Revenue for the period to 31 July 2019
was GBP2.6m. If CUK had been acquired on 1 February 2019, revenue
of the Group for the six months ended 31 July 2019 would have been
GBP5.8m higher, and loss for the period would have reduced by
GBP0.5m.
8. Impact on adopting IFRS16
Impact on lessee accounting
Former operating leases
IFRS 16 changes how the Group accounts for leases previously
classified as operating leases under IAS 17, which were off-balance
sheet.
Applying IFRS 16, for all leases (except as noted above), the
Group now recognises right-of-use assets and lease liabilities in
the consolidated balance sheet, initially measured at the present
value of the future lease payments as described above.
Lease incentives (e.g. rent free periods) are recognised as part
of the measurement of the right-of-use assets and lease liabilities
whereas under IAS 17 they resulted in the recognition of a lease
incentive liability, amortised as a reduction of rental expenses on
a straight line basis.
Under IFRS 16, right-of-use assets will be tested for impairment
in accordance with IAS 36 Impairment of Assets. This replaces the
previous requirement to recognise a provision for onerous lease
contracts.
Under IFRS 16 the Group recognises depreciation of right-of-use
assets and interest on lease liabilities in the consolidated income
statement, whereas under IAS 17 operating leases previously gave
rise to a straight-line expense in other operating expenses.
Under IFRS 16 the Group separates the total amount of cash paid
for leases that are on balance sheet into a principal portion
(presented within financing activities) and interest (presented
within operating activities) in the consolidated cash flow
statement. Under IAS 17 operating lease payments were presented as
operating cash outflows.
Former finance leases
The Group had no finance leases as at 31 January 2019
Financial impact
The application of IFRS 16 to leases previously classified as
operating leases under IAS 17 resulted in the recognition of
right-of-use assets and lease liabilities. Provisions for onerous
lease contracts have been derecognized and operating lease
incentives previously recognised as liabilities have been
de-recognised and factored into the measurement of the right-to-use
assets and lease liabilities.
The Group has chosen to use the table below to set out the
adjustments recognised at the date of initial application of IFRS
16.
As previously As restated
reported at 31 Impact of IFRS at 1 February
January 2019 16 2019
GBPm GBPm GBPm
Non-current assets 3.3 - 3.3
Property, plant and equipment 1.7 5.0 6.7
Current assets 19.5 (0.1) 19.4
------------------------------ --------------- -------------- --------------
Impact on assets 24.5 4.9 29.4
Current liabilities (7.9) - (7.9)
Lease liabilities - (1.0) (1.0)
Non-current liabilities (0.3) - (0.3)
Lease liabilities - (4.0) (4.0)
------------------------------ --------------- -------------- --------------
Impact on liabilities (8.2) (5.0) (13.2)
------------------------------ --------------- -------------- --------------
Impact on net assets 16.3 (0.1) 16.2
------------------------------ --------------- -------------- --------------
Equity and other reserves 12.7 - 12.7
Retained earnings 3.6 (0.1) 3.5
------------------------------ --------------- -------------- --------------
Impact on net assets 16.3 (0.1) 16.2
------------------------------ --------------- -------------- --------------
Of the total right-of-use assets of GBP5.0 million recognised at
1 February 2019, GBP4.8 million related to leases of property and
GBP0.2 million to leases of vehicles and office equipment and in
total GBP3.9m related to discontinued items and the related
balances at 31 July have been reclassified as assets held for
sale
The table below presents a reconciliation from operating lease
commitments disclosed at 31January 2019 to lease liabilities
recognised at 1 February 2019.
GBPm
Operating lease commitments disclosed under IAS 17 at
31 January 2019 5.4
Effect of discounting (0.4)
Lease liabilities recognised at
1 February 2019 5.0
In terms of the income statement impact, the application of IFRS
16 resulted in a decrease in other operating expenses and an
increase in depreciation and interest expense compared to IAS 17.
During the six months ended 30 June 2019, in relation to leases
under IFRS 16 the Group recognised the following amounts in the
consolidated income statement (including impact of new right of use
assets recognised on acquisition of CUK):
GBPm
Depreciation 0.6
Interest expense 0.1
Of the above GBP0.4m of deprecation and less than GBP0.1m
interest expense related to discontinued operations
9. Post balance sheet event
The Board announced that it had completed the sale of Bulgin on
24th September for a total consideration received of GBP104.7
million. After deducting the expenses incurred in connection with
the sale and the settlement of the LTIP liability, the net proceeds
receivable by the Group were approximately GBP94 million.
As previously announced, the Board expects to return
approximately GBP81 million to shareholders by way of a tender
offer for two ordinary shares for every three ordinary shares held
at a price of 65 pence per ordinary share (the "Tender Offer"). A
further circular and notice of general meeting in relation to the
Tender Offer are expected to be issued shortly.
As a result of the sale of the Bulgin business the Company has
changed its name to Checkit plc.
10. Cautionary statement
This interim financial information has been prepared only for
the shareholders of Checkit plc as a whole and its sole purpose and
use is to assist shareholders to exercise their governance rights.
Checkit plc and its Directors and employees are not responsible for
any other purpose or use or to any other person in relation to this
report.
The report contains indications of likely future developments
and other forward-looking statements that are subject to risk
factors associated with, 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. Key risks and their mitigation have not changed
materially in the period from those disclosed on pages 24 to 27 of
the annual financial statements for the year ended 31 January
2019.
These and other factors could adversely affect the Group's
results, strategy and prospects. Forward-looking statements involve
risks, uncertainties and assumptions. They relate to events and/or
depend on circumstances in the future which could cause actual
results and outcomes to differ materially from those currently
anticipated. No obligation is assumed to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
11. Other information
The financial information in this statement does not constitute
statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The financial information in respect of the
year ended 31 January 2019 has been extracted from the statutory
accounts, which have been filed with the Registrar of Companies.
The Independent auditor's report on those accounts was unqualified
and did not contain a statement under Sections 498(2) or 498(3) of
the Companies Act 2006.
Copies of the interim results are available to download from the
Group's website, www.checkit.net.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR ZMMZGNMDGLZM
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