Checkit PLC (AIM:CKT, OTC:ECKTF), the workflow software provider, was trading nearly 14% higher on Thursday at a little over 30p after it said it expects full-year losses to come in lower than the markets had initially expected.
Focusing exclusively on “high quality, high value” sales of its subscription service, which accesses vertical markets in the food service and science industries, the London-listed firm is confident of beating underlying loss estimates of between £3.7 million and £3.8 million.
High-revenue retention rates are helping boost contract momentum and the group said an accelerated focus on operating efficiency leaves it confident about performances in the second half.
Revenues lifted 19% in the first six months of the current financial year to reach £5.7 million, while adjusted losses for the half shrank to £1.9 million from £3.5 million a year prior, the group’s trading update revealed.
Kit Kyte, chief executive officer, said: "Checkit is on an accelerated track to profitability. We're scaling growth through our land and expand model, while prioritising operational efficiency and cost reduction.
"Despite the challenges in the wider economy, our diverse customer base and a product suite that is built to deliver operational efficiency uniquely positions us for market capture."