Shares in Checkit PLC (AIM:CKT, OTC:ECKTF) fell 16.5% on Thursday after the software group downgraded its revenue guidance for the current year, citing tougher market conditions and growing customer caution.
The AIM-listed firm, which provides automated monitoring tools for operational teams, posted an 8% rise in annual recurring revenue to £14.4 million and a 17% uplift in total revenue to £14.1 million for the year to 31 January 2025.
While new recurring bookings climbed 33%, the company now expects revenue growth of just 2–5% in the current financial year, well below earlier forecasts.
Checkit is shifting focus towards profitability, launching a cost-cutting programme expected to save £3 million annually. Adjusted losses before interest, tax, depreciation and amortisation narrowed by a third to £2.3 million.
Despite the downgrade, the company said it remains on track to reach EBITDA profitability and cash breakeven by the end of 2026, without raising additional funds.
The stock fell 2.39p to 12.11p.