Annual Report and Accounts 2024-25

Powering Predictive Operations

Annual Report and Accounts 2025

ii Strategic report

Checkit's mission is to eliminate operational waste by evolving standard operating procedures into Predictive Operations, thereby ensuring compliance, maximising productivity, and unlocking new value opportunities at scale.

Our business model combines a Cloud-based Platform, Integrated sensors, and Mobile capabilities.

The Checkit Platform provides the capabilities and intelligence to drive automation, analytics, and operational predictability.

Integrated sensors capture real-time data from physical

environments, enabling seamless data logging, precise accuracy, and operational scalability of use cases and automation.

Mobile capabilities enable a connected frontline workforce, aligning operational procedures and protocols while delivering value

to customers with

simplicity in mind.

Our value proposition derives from combining predictability through data-driven insights, scalability via integrated sensors and use cases, and simplicity through intuitive mobile applications - enabling customers to establish, evolve, and expand Predictive Operations.

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Financial highlights

Total Revenue

£14.1m +17%

(FY24: £12.0m)

Recurring revenue

£13.1m +17%

(FY24: £11.2m)

Adjusted LBITDA3

£2.3m +33%

(FY24: loss of £3.4m)

Group bookings4

£2.1m +33%

(FY24: £1.6m)

Annual Recurring Revenue (ARR)1

£14.4m +8%

(FY24: £13.3m)

Net cash

£5.1m

(FY24: £9.0m)

Contents

Strategic report

Highlights 1

Company overview 2

Investment case 4

Non-Executive Chairman's statement 6

Chief Executive Officer's review 7

Market Overview 10

Platform Overview 12

Business model 14

Business strategy 16

Financial review 18

Chief People Officer's review 20

Strategy in action 22

Environment, Social and Governance (ESG) 26 Stakeholder engagement and Section 172 30

Principal risks and uncertainties 32

Operational highlights

Progress towards profitability

Cash consumption reduced by 40% driven by revenue growth of 17%, and an increase in gross margins to 70%

New product functionality

Launch of new revenue generating product features including Asset Intelligence, based on proprietary Artificial Intelligence (AI) and Machine Learning (ML) models, integrating sensor networks, workflows and analytics

Compound recurring revenue growth of 27%

since FY20, reflecting strategic focus on subscription-based sales

Net revenue retention (NRR)2 of 107%

demonstrating 'land and expand' strategy

1. Annual Recurring Revenue (ARR) is defined as the annualised value of contracted recurring revenue from subscription services as at the period end, including committed annual recurring revenue from new wins.

2. Net retention revenue (NRR) is defined as the amount of recurring revenue from existing customers retained over the year.

3. Adjusted LBITDA is the loss on operating activities before depreciation and amortisation, share-based payment charges and non-recurring or special items.

4. Bookings are defined as the committed Annual Recurring Revenue ("ARR") of new sales wins contracted during the period

Corporate governance

Executive leadership 37

Corporate governance report 38

Audit Committee report 41

Remuneration report 43

Report of the Directors 49

Directors' responsibilities statement 51

Financial statements

Independent auditor's report 53

Consolidated statement of

comprehensive income 58

Consolidated balance sheet 59

Consolidated statement of changes

in equity 60

Consolidated statement of cash flows 61

Notes to the consolidated financial statements 62

Parent company balance sheet 83

Parent company statement of changes

in equity 84

Notes to the parent company financial statements 85

Web property and advisers 88

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Company overview

Checkit powers Predictive Operations for large facilities and multi-site organisations. By enabling them to move beyond outdated, reactive ways of working to automated data collection, digitised workflows, and AI-driven intelligence, we empower organisations to increase compliance, safety, and bottom-line revenue.

Our services are delivered to hundreds of customers across the globe, including Global Fortune 500 companies and public health organisations. Our customers use Checkit to digitise manual processes with our highly configurable platform and top-of-the-line integrated sensors, enhanced by AI and ML. In the last year our platform handled 12 billion+ sensor readings and 10 million+ completed workflows, delivering unmatched efficiency, safety, and total operational visibility.

Predictability + Scalability + Simplicity = Predictive Operations

Checkit is transforming how forward-thinking digital-first organisations execute frontline work, blending execution, automation, and intelligence across every business function.

We connect people, assets, and workflows to generate performance data that informs operational strategy, execution, and compliance. Our single-source digital solution

is proven to unlock efficiencies at scale, driving down costs and risk while elevating service delivery at the frontline.

Predictive Operations deliver clarity to business leaders - enabling them to see, understand, and optimise enterprise-wide processes and asset utilisation with ease.

Our customers include:

Financial statements

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Predictability. Scalability.

Simplicity.

Platform

An end-to-end digital solution.

Predictive Operations

Operations provided by digitally enabled frontline workers and integrated sensors

- drives value and impact from the outset. Checkit enhances the activities performed by frontline workforces and increases asset utilisation efficiency through its end-to-end platform, built to help organisations become digital and data-first.

Sensors Mobile

Sensors

• Top-of-the-line integrated sensors

• Effective, reliable and compliant technology

• Fully-installed and maintained by Checkit's team of experts

  Platform

• Automated workflows and task management

• Monitors and analyses all mission-critical sensor data

• Real time, pre-emptive digital alerts

• Advanced analytics and dashboards

  Mobile

• Enable an organisation to move from manual labour dependency to a digitally-optimised automated workplace

• Responsive, experienced staff who know sensors and platform capabilities in multiple environments empowering reliable and stable operations

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Investment case

Reasons to invest in Checkit

• Recurring revenue model with profitability within reach

• Differentiated technology using AI and ML

• Established presence in the United States

• Focused on large vertical markets with reference customers

Guided workflow management, integrated sensor automation

Organisations are prioritising operational efficiency as rising costs, economic uncertainty, and competition drive investment in the digital transformation of frontline operations. This has intensified the demand for data-driven insights, driving adoption of automated and integrated solutions. Checkit sits at the heart of this, empowering organisations to optimise their two most valuable resources - people and assets - for greater productivity and efficiency.

Integrated sensors Mobile workflows

Platform Intelligence

Financial statements

Corporate Governance

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Recurring revenue model with profitability within reach

That we serve fast-growing markets is illustrated by the 27% CAGR (Compound Annual Growth Rate) in recurring revenues over the last five years. We have great customer retention, with some 94% of revenues classed as recurring, underpinning the

outlook for future financial years. With further growth in revenues and with careful control of costs, this provides us with a pathway to positive cash flow.

Differentiated technology using AI and ML

Our platform and integrated sensors provide realtime intelligence, supported by AI and ML capabilities that add value to staff workflows and asset health management. This enables managers to optimise working practices, unlocking productivity gains, enhancing customer service, and efficiently managing assets such as freezers. As a result, costs are reduced, and wastage and emissions are minimised.

Established presence in the United States

Our focus is on scaling our business in the US while continuing to drive growth in the UK. Our 'land and expand' strategy is delivering on this, with the US now contributing over a quarter of the Group's annual recurring revenue.

Serving large vertical markets

We focus on two principal markets, the UK and the US, targeting sectors such as hospitality, leisure, healthcare and retail. Our customers in leisure

and retail include John Lewis & Partners, BP, and Tenpin. In the healthcare sector, customers include Octapharma (the largest privately owned and independent plasma fractionator in the world), Grifols (a leading global healthcare company that develops plasma-derived medicines and other biopharmaceutical solutions) and the UK's NHS.

Recurring revenue

£14m

CAGR 27%

£13m

£12m

£13.1m

£11m

£10m

£11.2m

£9m

£9.6m

£8m

£7m

£6m

£6.8m

£5m

£4m

£5.2m

£3m

£2m

£1m

£0m

FY21

FY22

FY23

FY24

FY25

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Non-Executive Chairman's statement

Consistent growth and positioned for profitability

Following another year of progress, we are closer to our goal of achieving profitability.

Keith Daley Non-Executive Chairman

"Checkit continues to innovate in order to meet

the sustainability challenges faced by our customers."

Dear Shareholders

On behalf of the Board, I should like to thank Chief Executive Officer Kit Kyte, Chief Financial Officer Kris Shaw, the rest of the senior management team and indeed all staff in the UK and US who have contributed to the performance of Checkit.

FY25 was a challenging year for our customers. The containment of costs, in the context of dramatic increases in pay-related overheads in our UK

target markets, has become paramount for all businesses and Checkit is well placed to help achieve the productivity improvements our customers seek.

Against the backdrop of macroeconomic constraints, Checkit's operating performance was in line with Board and market expectations. Our goal is to achieve profitability and cash generation through revenue growth and cost control. Growth will be achieved organically and through acquisitions if suitable targets present themselves.

Finally, I should like to take the opportunity to state that the Board is fully aware of the disparity between our improving performance and the share price on AIM. Over the next 12 months the Board will be focused on addressing this problem.

Keith Daley

Non-Executive Chairman 23 April 2025

Financial statements

Corporate Governance

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Chief Executive Officer's review

Executing on strategy:

growth and profitability in focus

Reflecting on fiscal year 2025, Checkit has achieved significant milestones, including robust financial growth, and advancements in harnessing data and AI to strengthen our competitive advantage.

Kit Kyte

Chief Executive Officer

Annual recurring revenue grew

by 8% to

£14.4m

(FY24: £13.3m)

17% growth in reported recurring revenue of

£13.1m

(FY24: £11.2m)

Expediting profitability has become the main effort for the Company in the near term. To that end, we recently announced a strategic plan to deliver

accelerated profitability and sustainable growth. This plan reflects the evolving economic landscape in our key markets, with the UK National Insurance increase and the introduction of US trade

tariffs contributing to uncertainty and caution among customers. In light of these challenges, the Company has taken proactive steps to strengthen its financial position.

A review of Checkit's operations and cost base, has resulted in the identification and implementation of measures expected to deliver annualised cash savings of approximately £3 million from quarter two of the current financial

year, with the full benefit to be realised in the subsequent financial year. The implementation of these measures is expected to bring forward the point at which the Company starts to generate net cash inflows.

Strategy and ambitions

We fulfill market needs with a comprehensive solution that excels in the gathering of data for analytics, offering insights that empower our customers to make informed decisions, implement cost efficiencies, and secure compliance with their policies. Our goal is to be a leader in augmented workflow management for the frontline workforce.

We secure initial wins in discrete customer locations or functions, and then build deeper customer relationships that drive long-term growth. Our ability to drive growth this way is demonstrated

in our strong net revenue retention rate of 107%, providing visibility of future ARR expansion. We have made significant strides in transforming Checkit into a predominantly subscription-based model, with non-recurring revenues in FY25 constituting only 6% of total revenue. This shift enhances our revenue predictability and strengthens customer engagement, paving the way for additional business.

As part of the recently announced strategic plan the Checkit management team has undertaken a comprehensive evaluation of the entire business. This in-depth review generated valuable insights that have now been embedded into our FY26 strategy and longer-term planning:

• Our Go-to-Market (GTM) approach is designed to drive strong commercial performance while maintaining a disciplined investment profile. We aim to deliver healthy revenue retention, in line with top-quartile industry benchmarks as demonstrated by our 3-year average NRR of 111% and gross revenue retention ("GRR") of 97%.

• The US remains the priority region responsible for driving new customer acquisition, supported by its broad range of target enterprises. In FY25 23% of US bookings came from new customers. While recent US trade tariffs

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  contribute to economic uncertainty, based on our current understanding, they are not expected to have a material impact on Checkit's revenue or cost base.

  • The successful launch of Asset Intelligence, a new machine learning ("ML") / AI data module, that optimizes asset availability, reduces operating costs and delivers ROI, differentiates Checkit as a data orchestration platform for operational leaders.

Future product innovation will focus on further monetization of data "at ground level" as a source of high margin growth.

The Group's focus is on building a sustainable and higher conversion rate pipeline across the retail, healthcare, facilities management, franchise, and biopharma verticals. We are increasing customer loyalty by continuously investing in our platform, including

its capacity to incorporate external technologies, positioning us at the forefront of the market.

Our sales and marketing efforts are geared towards generating high-quality leads with improved conversion rates, especially in our key sectors and expanding further into the US market. Checkit's new customer pipeline in the US includes several multi-site organizations across the healthcare, food retail, hospitality, and biopharma sectors. The US remains on course to be the largest contributor to Group revenues and remains a key growth driver. US revenue increased by 20% year-on-year to £3.7m, highlighting continued demand for our solutions in a high-potential market.

In addition to driving organic growth, we continue to see acquisitions as a route to scale and an enhanced market position. While the proposed merger with Crimson Tide plc did not proceed, we remain committed to exploring other opportunities that strengthen our capabilities, expand our customer offering, and create value for shareholders. We will maintain a disciplined approach to acquisitions, ensuring they align with our strategic plan and

long-term vision. At the same time, we remain focused on balancing organic growth initiatives with operational efficiency to sustain a high-performance culture within Checkit.

Innovation and competitive advantage

Innovation remains the cornerstone of Checkit's strategy, driving us to continually enhance our offerings and deliver exceptional value to our clients. In FY25, we made significant strides in integrating advanced technologies, particularly AI and data analytics, into our platform.

Our approach centres on the intelligent orchestration of integrated sensors, digital workflows, and AI. This integration enables us to transform traditional data collection methods into continuous, automated

processes that provide real-time, actionable insights. By leveraging AI, we can analyse vast datasets to identify patterns, predict potential operational challenges, and recommend proactive solutions, thereby enhancing our clients' operational efficiency and decision-making capabilities.

During FY25, we launched our Asset Intelligence module, marking a significant advancement in our AI and ML capabilities. This module applies advanced analytics and machine learning to sensor data, enabling clients to enhance sustainability, reduce costs, and improve revenue streams. The successful deployment of this module with our first five clients during H2 underscores its potential to revolutionise asset management across various industries.

We are dedicated to exploring emerging technological opportunities that align with our mission to reshape business performance. Our focus will remain on integrating cutting-edge technologies into our

unified platform, ensuring that we continue to meet the dynamic needs of our clients and maintain our competitive edge in the market.

Positive outlook

As we look ahead, Checkit is well-positioned to capitalise on emerging opportunities in the workflow management sector. The successful execution of our profitability and growth strategies, combined with strategic M&A and our commitment to innovation, provides a strong foundation for continued success. We remain dedicated to delivering exceptional value to our customers and shareholders, driving sustainable growth in the years to come.

Kit Kyte

Chief Executive Officer 23 April 2025

Financial statements

Corporate Governance

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Capture

Connect

Our platform

Comprehend

Collaborate

Capture

Our digital assistants replace paper checklists, spreadsheets and makeshift legacy technology with digital workflows, and integrated sensors capture environmental and telemetry data about assets and buildings.

Connect

Data captured from people, assets and buildings across different teams, workplaces and locations are connected and mined for insight about productivity.

Collaborate

Teams collaborate, evidence and annotate their tasks, alerts, and interactions with assets to help eliminate duplicated effort and human error.

Comprehend

Business intelligence and dashboard analytics stream actionable insights to leaders and managers, driving behaviour change and highlighting performance improvements.

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Market overview

The market opportunity for augmented workflow technology

Our platform empowers a large, underserved and available market in an unpredictable world to become digitally enabled, connecting and revealing its people and assets, and preparing them to meet future demands.

A large addressable market

The global frontline workforce comprises approximately 2.7 billion workers - or 80% of workers worldwide. Yet despite this, just fewer than six in ten

frontline workers use mobile devices as part of their jobs and 73% are still using paper forms1.

Continuing shortages of frontline workers, high employee turnover, increasing payroll and supply chain costs combined with external pressures to demonstrate adherence to ever increasing compliance and sustainability requirements mean there is a compelling need for organisations to digitalise their

frontline workforce practices.

Continuing advances in technology and particularly in the areas of AI and ML enable organisation leaders to: (i) track and optimise employee productivity; (ii) identify underperforming assets, (iii) reduce costs and wastage; (iv) increase efficiency; and (v) attract and retain talent.

Checkit operates in several large and rapidly growing markets, collectively valued at an estimated $110 billion, with double-digit CAGRs. Our ability to serve these markets concurrently adds significant value by offering integrated, scalable solutions that reduce complexity. As a result, we estimate that the potential technology spend within the frontline workforce for Checkit solutions could represent approximately 5% of this total market value, giving us a target addressable market of around £5 billion.

Financial statements

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£110bn

Our total addressable market

£5bn

Our target addressable market

Our target addressable market

Our target addressable market applies to both our sensor and software solutions - the augmented workflow offering - aimed at incorporating physical assets into a digital ecosystem and applying digital tools and monitoring to transform working practices.

Currently serving three out of seven potential sectors

We are currently serving customers within three out of a potential seven markets - the healthcare, retail and hospitality sectors, catering to almost 800 million frontline workers.

We believe that by evolving both the product and the Go-To-Market functions, we can address significant expansion opportunities in adjacent markets including manufacturing, biotechnology, higher education, transport and logistics.

Targeting the US market

The US remains the largest and most appealing market for the digitalisation of frontline workforce practices, accounting for over five times more technology spend than the European market. The US market currently accounts for 26% of ARR and we continue to believe it presents significant opportunity for further expansion and growth. We anticipate the US contributing more than 50% of Group revenues in the medium term.

1. https://www.precedenceresearch.com/workforce-management-market

2. https://www.researchandmarkets.com/reports/5303179/microlearning-global-strategic-business-report

3. https://www.marketsandmarkets.com/Market-Reports/internet-of-things-market-573.html

4. https://www.grandviewresearch.com/horizon/outlook/employee-engagement-software-market-size/global.

5. https://www.precedenceresearch.com/food-safety-monitoring-system-market

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Platform overview

Connecting people, places and things

Our product vision is to transform front line operations - boosting the performance of people and assets.

In a world of rising costs and competitiveness, where staff turnover is high and skills are in scarce supply, it's vital that front line staff can concentrate on delivering value and quality. Automation of routine tasks and defined predictable processes are essential. But increasingly operations teams want to be able to look ahead, to predict and act on problems using insights from their data. Our vision is to deliver on this need.

Our products put three of today's biggest technology trends to work for our customers: integrated sensors replace manual, occasional data gathering with continuous sensing; mobile work digitisation replaces manuals and paper forms with smart

apps; and Asset Intelligence creates insights and suggestions that would have been previously missed. Each is powerful, but it is when they work together that far more value can be unlocked.

• Integrated sensors alone capture data and detect when readings go out of a defined range. But with AI, they can uncover opportunities to improve performance and predict problems. Combine this with workflow and things aren't just detected, they are acted on promptly by busy workers.

• Digital workflows replace paper and spreadsheets with guided processes. But, that is far more powerful if some of the work can be replaced by automation using sensors. Asset Intelligence offers the potential to identify how to improve processes and where training is needed.

• Asset Intelligence is able to process and interpret vast amounts of data, but, it is only as good as the data it has to work on. Integration with workflow and automation means intelligence can be put to work quickly without hassle and its conclusions can be turned back into actions.

Exploiting this combination of capabilities in a single platform is at the heart of Checkit's vision and differentiation. It means we are uniquely able to address a wide set of business problems. To date, we have focused on food safety and food service operations as well as monitoring medical and life sciences environments. Both require continuous monitoring and for busy front-line workers to perform and record workflows. Both also require

the visibility and efficiency at scale that is far better provided by modern analytics and AI than by human oversight and analysis. However, these are only examples. Any process that requires a combination of continuous monitoring that then requires users

to take actions is susceptible. Examples include a wide range of maintenance problems, production processes and logistics management.

We are continuing to evolve our products to deliver the benefits of this vision. Our guiding principles are: a single platform that deeply integrates sensor data, workflow and Asset Intelligence and is to enable multiple industry solutions; massive scalability; simplicity for users and owners; and an open, modular approach that fits with customer processes and IT architectures.

Our product development is shaped by our vision and feedback from our customers. As a result we are currently exploring

• making our products more open, paving the way to integrations with customer HR and quality systems as well as AI tools. This will reduce

  cost of ownership and allow Checkit solution to participate in wider business processes.

• tailoring the user experience of our products to be even more matched to the daily work of users in our target markets - reducing time to value and minimising adoption hurdles for busy end users.

• driving down the cost base of our sensor and cloud platforms, strengthening our unit economics and enhancing profitability as we scale.

These developments are exciting steps towards our vision, bringing the latest innovations in technology such as AI to the practical problems our customers wrestle with daily. As these opportunities continue to emerge, we will exploit them, expanding our scope and value. We are taking the critical next steps on an exciting journey.

Strategic report

Corporate Governance

Financial statements

Designed for the speed and scale of Predictive Operations

Rapid time-to-value, with unique features that help teams as they grow.

No code workflow builder

Workflows can be built and deployed rapidly using a simple drag and drop interface.

Integrated sensor automation

A variety of in-house and third-party sensors that can monitor and alert on critical assets.

Deliver automated alerts and scheduled work to frontline workers

Prompt frontline workers from their mobile device to carry out actions triggered by sensor alerts from equipment or buildings ensuring remediation and risk prevention.

Real-time collaboration

Allow multiple staff to collaborate on a single set of actions, and understand standard operating procedure, reducing duplicated effort.

Reporting dashboards and Asset Intelligence

Out-of-the-box dashboards provide seamless digital reporting, and Asset Intelligence provides predictability around asset performance, health, and more.

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Business model

Our business model

Our Assets Value creation

People

A workforce with deep domain knowledge of the industries we serve.

Enterprise-grade platform

Integration of workflow automation with data from integrated sensors, enhanced by AI to drive digitalisation and efficiency.

Seed

Demonstrate value

We partner with our customers to uncover and digitalise single use cases to demonstrate impact and ROI.

Land

Design and onboard

Working with the customer we identify and deploy additional use cases to increase impact and value.

Operational ecosystem

A growing ecosystem of integrated sensors and mobile capabilities to gather datapoints and inform decisions.

Strong financials

Our business model is based on high quality recurring revenue growth from landing new customers and expanding existing relationships.

Initial relationship

Customers will often start building their sensor network and workflows using individual use cases.

Initial implementations are typically focused on proof-of-concept workflows or existing processes that

are challenging to the business.

Support

Our support team operate 24/7/365 days a year to answer customer calls.

Strategic report Corporate Governance Financial statements

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Corporate Governance

Financial statements 15

Revenue generation

Expand

Growth

Customer Success work alongside the customer to identify and champion additional digitalisation

opportunities and improve efficiencies by driving product usage and aligning the platform to the customer's strategic goals.

Insight

Predictive Operations

Customers unlock Predictive Operations by connecting their frontline workforce, assets, and buildings, unlocking business insight.

Subscription revenue

We sell platform, sensor, and mobile application subscription bundles which

include updates, maintenance, calibration and support.

Professional services

We provide professional services on how to move to a digital workplace.

Stakeholders

Customer Success

Our customer success team partner with the customer to understand their strategic objectives associated with process automation and work alongside them to deliver ongoing product education and deliver value.

Employees

161

We have 160+ employees globally.

Platform enhancements

Our platform continuously delivers features and enhancements designed to improve usability, insights and unlock new use cases.

Investors

CKT.LN

Our investors can invest in the creation of a new

industry category with a large underserved market.

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Business strategy

Putting Checkit on the path to profitability

We're systematically evolving every aspect of Checkit to capture our target market including turning our attention to operating as sustainably as possible with a view to breaking even by FY27.

Converting Checkit into a pure subscription business and pursuing optimum sustainable growth rates

• We aim to create a fully integrated data platform with the ability to accommodate third party sensor use cases within its ecosystem.

• The improved Checkit platform will also be the core of our end-to-end insights, analytics and dashboarding functionality that separates us from competition.

  Progress in FY25:

  94%

  recurring revenue of total FY25 revenues (FY24: 93%)

  Accelerating scale and sustainable growth

• The Company will invest, in a targeted ROI led basis, into sales and marketing efforts to help drive top line growth coupled with further development of the Checkit platform to create a market leading product.

• The Company will also consider compelling acquisition opportunities to supplement organic growth and achieve additional scale

  Progress in FY25:

  17%

  recurring revenue growth vs. FY24 (FY24: 17% vs. FY23)

  Ensure Checkit operates efficiently, through streamlined procedures, to generate optimum sustainable growth

• In order to achieve profitability, we seek to optimise the Company's processes and seize cost efficiency opportunities with the aim of improving margins.

• Of utmost importance is our ability to balance cost and growth initiatives in order to cultivate and maintain a high-achieving mentality across the Checkit workforce.

Progress in FY25:

3%

expansion in gross margin to 70% (FY24: 4% expansion

to 67% from FY23: 63%)

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Financial review

Continued drive to profitability

Kris Shaw

Chief Financial Officer

The financial year in review

Financial results in FY25 demonstrate Checkit's continued trajectory of growth, operational improvement and drive towards profitability, building upon the momentum established in previous years.

Total Group revenue for FY25 reached £14.1 million, representing a 17% increase from £12.0 million in FY24. This growth was driven by both new customer acquisition and the successful expansion within existing accounts, underscoring the effectiveness of Checkit's 'land and expand' strategy.

Adjusted LBITDA of £2.3m (FY24: £3.4m), continues the Group's strategic priority to balance growth with improved operational efficiencies resulting in reduced losses year-on-year.

ARR grew by 8% to £14.4 million (FY24: £13.3 million), reflecting continued progress in driving subscription-based revenue. During the year, we secured £2.1 million in new bookings and achieved a NRR of 107%, demonstrating strong customer engagement and upsell momentum. While total contraction and churn in the period amounted to £1.0m, approximately

£0.3m related to low-value, low-margin customers, where the associated delivery costs were also removed-limiting the impact on contribution.

A further £0.4m resulted from a tidy-up of prior period accounts, often where closed bookings did not ultimately convert to revenue and are therefore classified as churn. The remaining £0.4m came from our core customers.

Our business model remains firmly subscription based, with recurring revenues representing 94% of total revenue. 'Land and expand' wins through the introduction of Checkit products into an

integrated energy company's dealer sites to provide real time operations management capabilities to 200 franchisees in the UK and the agreement with Octapharma in the US integrating TTMUs (Tactical Temperature Monitoring Units) into their existing monitoring system, supported the growth of recurring revenue by 17% and NRR of 107%.

Twelve months to

We continue to see growth opportunities in the US, with ARR increasing +12% year-on-year. New customer signings have strengthened our growing care home use-case, while additional wins in the

blood plasma vertical offers further 'land and expand' opportunities. Overall North America revenues increased by 20% during FY25, highlighting our continued penetration into the US market and growing international presence.

Financial statements

Corporate Governance

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LBITDA

Checkit continues its progress towards profitability with adjusted LBITDA for the year of £2.3m (FY24:

£3.4m), an improvement of 33%. Gross margin to 70% (FY24: 67%).

Operating expenses increased by 5%, as the benefits of cost efficiency programs were offset by inflationary pressures and targeted Sales &

Marketing investments to support revenue growth and pipeline development.

Overall product spend has been maintained at

£4.4m (FY24: £4.3m) to support the development of AI and ML product offerings. These products include the recently launched Asset Intelligence module which applies advanced analytics and machine learning to sensor data to enhance customer sustainability. Revenue generation from these products commenced quickly after launch. Capitalised development was £2.4m (FY24: £2.0m), which includes the spend to bring these improved product offerings to the market.

LBITDA improvement progression

£7m

£6.4m

£3.4m

£2.3m

£6m

£5m

£4m

£3m

£2m

FY23

FY24

FY25

£1m 0

LBITDA

Non-recurring or special items

Non-recurring or special items in the year of £0.5m related to restructuring costs, specialist tax advice for the resolution of the HMRC disagreement relating

to input tax, and the initial costs associated with the merger with Crimson Tide PLC which did not proceed.

Taxation

The Group is currently loss making and therefore no corporate tax charge is reported for the year. There remains approximately £29m in Group carried forward taxable losses and therefore there is no expectation of tax payments in the short to medium term. With the support of a new R&D tax advisor the FY24 and FY23 claims were submitted, resulting in a combined claim of

£0.7m, which is expected to be received in FY26.

Contingent liability

Checkit and HMRC had been in correspondence since early 2022 regarding matters of input tax recoverability. The review of the case has now been completed and HMRC has recognised that Checkit was entitled to input VAT recovery throughout the period under review. Therefore, the contingent liability has been removed from the financial statements and withheld cash received, albeit partially offset by specialist tax advice fees.

EPS - continuing operations

The weighted average number of shares in issue in FY25 was 108.0m. Loss per share (basic and diluted) was

3.3 pence (FY24: 4.2 pence).

Cash

As of 31 January 2025, the Group's cash position was £5.1m (FY24: £9.0m), reflecting a 40% reduction in overall cash consumption, driven by revenue growth and improved LBITDA. The reduced cash consumption highlights the business's continued progress in executing its strategic objectives.

Kris Shaw

Chief Financial Officer 23 April 2025

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Chief People Officer's review

Empowering people

Julie Webbe

Chief People Officer

Chief People Officer's Annual Report

As we continue to build from our strong foundations, we strive to deliver a working environment that embraces equity and inclusivity and that provides a stimulating and rewarding working experience.

Our aim is for everyone to have gained personally by working at Checkit, whether it's through helping our customers solve complex problems, developing new ways of using technology or forming long lasting

relationships. We continue to have our team's wellbeing and their best interests at heart in all that we do to ensure they are supported and feel valued.

Our People

Voluntary attrition has continued to decline to 6% and we are now reaping the rewards of continuity of our teams. This has allowed us to build institutional knowledge, whilst reinforcing our culture. We have added further automations to our HR portal this year, building on the progress made last year, to improve efficiencies with automatic onboarding of new hires and digitising a number of approval processes.

We have also taken the opportunity to enhance our induction processes that provide new hires with an immersive and detailed introduction session to every

function and activity across the business. This has allowed new hires to understand our business at pace and has reduced the time taken to reach optimum performance. We also took the opportunity to offer these sessions to existing team members.

We continue to use OKRs ("Objectives and Key Results") to define and execute on our most important outcomes. Alongside our OKR programme we hold strategic initiatives events, which are run as "open" meetings for all staff to attend, to listen and learn about work being delivered across the business. With regular attendance of more than 50% of our teams, this shows a real desire from our team members to learn and

work collaboratively. The principle of open meetings will continue into FY26 with new strategic initiatives to be launched, and the addition of a Customer Review Board; a monthly review of key customers and how we can improve the support we provide.

Talent acquisition

This year, recruitment spend has been exceptionally low with only two placements made using agencies for temp-to-perm arrangements. This is in part

the result of low attrition but also our now well established in-house talent acquisition capability in sourcing high calibre talent. From a position where 90% of our vacancies were filled by agencies in 2022, we now see agencies representing just 7% of our recruitment activity.

Financial statements

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Learning and development

With our talent acquisition offering in a strong place and recognising the importance of ongoing

professional development, we expanded the remit of the Head of Talent Acquisition to include Learning and Development. The initial focus has been on enhancing induction and onboarding processes for new hires, ensuring a smooth transition into Checkit, and this has already been successfully delivered in FY25.

Looking ahead to FY26, our focus will shift to mapping skills and behaviour requirements across all roles.

We will then map out career paths for each role to allow all teams to have a clear understanding of how they can progress and build their career at Checkit. Discussion and career plans will form part of the Quarterly Conversations initiative launched in FY24. This is a major project that we anticipate will take most of the second half of FY26 to design, deliver and embed into the business. The rewards of this will be realised the following year as we grow and they will support succession planning as well as staff retention.

Employee engagement and internal communications

We have placed significant emphasis on improving internal communications and employee engagement this year. A structured approach, underpinned by a clear strategy, was rolled out this year. We have introduced a number of initiatives including "GLC Talk", a channel for our senior

leaders to provide thought leadership pieces for the business. We have also introduced "two minutes with…" which shines the spotlight on individuals

from all areas of the business to provide better insight into the work that is delivered every day and the individuals who deliver it.

Compliance and Training initiatives

Compliance with new legislative changes was a major priority in FY25. As part of this, we delivered mandatory "Respect at Work" training to all team members. This initiative ensures that we remain aligned with legal requirements while fostering a culture of inclusivity and respect throughout Checkit. These sessions will continue to be delivered as new hires arrive to ensure the messaging is not diluted or lost over time.

Diversity, inclusion and belonging

As part of our ESG commitments, this year has seen a number of new initiatives introduced to support our objectives. Our charitable activity and our aim to "give back" has strengthened this year with the introduction of our Payroll Giving facility. We held a number of

fund raising events during the year including a food bank collection at Christmas and the launch of a volunteering programme. This allows every employee to take a day's paid leave to volunteer as a group or individually to a good cause of their choice.

We conducted a follow up culture survey towards the end of the year to allow us to compare results against our baseline from 12 months ago.

In summary

FY25 has been a year of consolidation and progress, with a strong focus on retention, engagement, and compliance. The initiatives delivered this year have strengthened our resilience and prepared us for future challenges. As we move into FY26, we will continue to prioritise career development, succession planning, and employee engagement. Together, these efforts will ensure that we remain an employer of choice, driving both business success and a positive employee experience.

Julie Webbe

Chief People Officer 23 April 2025

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Case Study

Strategy in action

Enhancing compliance and efficiency through digital innovation

The Royal Devon University Healthcare NHS Foundation Trust (the "Trust") was established in April 2022, bringing together

the expertise of the Royal Devon and Exeter NHS Foundation Trust and Northern Devon Healthcare NHS Trust. Serving a population of more than 615,000 people across Northern,

Eastern, and Mid Devon, the Trust operates across an expansive 2,000-square-mile region, extending specialist services into Cornwall and the Isles of Scilly.

The Trust's two acute hospitals - North Devon District Hospital and Royal Devon and Exeter Hospital

- are renowned for their research, innovation, and strong academic partnerships. In addition to

emergency, specialist, and general medical services, the Trust provides integrated health and social care through community inpatient hospitals, outpatient clinics, and home-based care.

A cutting-edge approach to Pathology

A key pillar of the Trust's service offering is its Pathology Service, supported by two UKAS-accredited, custom-designed laboratories. These facilities deliver

a full spectrum of Clinical Biochemistry, Haematology, Immunology, and Blood Transfusion services, processing over 25,000 test results daily for both NHS and research patients.

Strengthening compliance and efficiency with Checkit

To ensure the safe storage and regulatory compliance of critical medical assets, the Trust first partnered with Checkit in 2020. This collaboration enabled the Trust to effectively monitor and manage the storage of medicines, blood samples, and

other regulated products, meeting the stringent requirements set by regulatory bodies such as the MHRA, HTA, UKAS, and CQC.

Building on this successful partnership, the Trust expanded its collaboration with Checkit in 2024. Today, Checkit monitors over 500 assets and areas across Pharmacy, Pathology, and Research & Development. This advanced monitoring system plays a vital role in:

• Ensuring compliance with strict healthcare regulations

• Preventing stock loss of essential medical supplies

• Optimising staff efficiency by reducing manual monitoring tasks

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Case Study

Strategy in action

Supporting growth, efficiency and excellence

Company profile

Founded in 2010, Dishoom has seven restaurants in London, located in Canary Wharf, King's Cross, Battersea, Covent Garden, Shoreditch, Carnaby and Kensington, with additional locations in Edinburgh,

Birmingham, and Manchester. From breakfast to lunch, dinner, and cocktails, each unique location pays homage to the food, history and culture of Bombay.

In fact, every Dishoom location has a distinct personality with a story deeply rooted in a specific time of Bombay history or culture.

Long-standing partnership

Checkit has been a trusted partner of Dishoom since 2017, growing alongside them from five locations

to thirteen locations today. The Checkit solution is integral to Dishoom's operations and is utilised in their renowned Dishoom cafés, the production bakery that creates Dishoom Meal Kits, and their new all-day bar-café concept, 'Permit Room'.

Dishoom leverages a comprehensive set of Checkit tools including Connected Workflow Management software for checklists, dedicated hardware to ensure seamless, digitised temperature monitoring, and scheduled task management. These capabilities are combined with Checkit's automated temperature sensors to remove the need for kitchen staff to manually record fridge & freezer temperatures freeing them up to focus on higher value activity.

The Checkit solution significantly enhances the operational efficiency of both kitchen teams and front-of-house staff by digitising formerly manual, paper-based processes while ensuring compliance with Dishoom's stringent food safety standards.

The Dishoom food safety team can leverage the collected data for key reporting and insights across all locations, supporting the company's expansion by ensuring a consistent customer experience and high quality standards.

The benefits of digitisation also extend to employee satisfaction. By removing mundane paper-based tasks the solution supports Dishoom's commitment to excellence as an employer, reflected in their recognition as one of the top 10 companies in the Sunday Times Best Places to Work 2024, its MCA

Award for the Best Restaurant Company, and its B-Corp certification.

Dishoom has exciting expansion plans, and Checkit is delighted to support the launch of their fourth Permit Room, and notably their first in London, set to open in spring 2025.

"Checkit ensures accuracy and is necessary for our operation. It provides Chefs comfort and focus on what they are doing."

- Dishoom Head Chef, Battersea

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Photo: dishoom.com

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Environment, social, and governance (ESG)

Driving sustainable growth

Since launching our ESG programme in FY24, Checkit has instilled ESG values and initiatives across the organisation. Amid a global shift in ESG priorities, we remain steadfast in our belief that a thoughtful ESG programme enhances value for all our stakeholders.

In FY24, we launched our ESG programme with the goal of integrating ESG metrics and initiatives into the foundations of Checkit. ESG is now embedded within the business. From new joiners to new suppliers, we consider business decision with ESG in mind.

Environment

Our pledge to sustainability

At Checkit, we take pride in equipping our customers with tools to promote sustainability, aligning our ESG programme with our own commitment to minimising environmental impact.

Flexible working survey

In FY25, we surveyed the business to better understand employee commuting practices and how often our offices are used.

This survey reaffirmed our commitment to the 'remote-first' approach to flexible working.

Auditing suppliers

We are placing increased emphasis on assessing our key suppliers to ensure their ESG aspirations align with ours.

Low emissions fleet

We have continued to invest in hybrid vehicles to reduce emissions associated with engineer travel. Our fleet is now >80% hybrid.

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Our emissions reduction journey

We have partnered with Carbon Neutral Britain to calculate our emissions in accordance with ISO 14064 and GHG Emissions Protocol standards. Our FY25 emissions again reveal that vehicle emissions are our major contributor (42%), followed by business travel (9%) and organisation site energy usage (9%). While our priority is to reduce our emissions, as we continue to work on this, Checkit offsets its emissions through the Verified Carbon Standard and United Nations Certified Emissions Reduction programmes. Checkit Europe Limited is a carbon neural certified organisation.

Set out below are CO2emissions associated with Checkit Europe Limited:

In the future, we aim to expand our offsetting and carbon reduction calculations to include our US operations.

Carbon reduction plan

Our commitment extends beyond offsetting emissions to ambitions to achieve Net Zero for scope 1, 2, and 3 emissions by 2050. Our targeted Carbon Reduction Plan, with strategic initiatives already in motion, focuses on our key emissions areas:

• vehicle emissions;

• business travel; and

• site energy consumption.

  We are already implementing ways to reduce the key emissions listed above and we hope to make impactful changes over the next twelve months. In FY25, for the first time, our offices in Fleet and Cambridge were supplied by 'green' energy providers. Our provider in Cambridge uses AI to help bring about behavioural changes thereby reducing emissions.

  
  
  

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  Social

  An inclusive environment where our people can bring their whole selves to work

  In the year under review, we delivered 'Respect at Work' training to over 90% of employees which was designed to raise awareness about sexual harassment. We also launched Payroll Giving, which allows employees to donate to their chosen charity directly from their gross salary. In addition, we organised events through our charity committee and launched a volunteering programme, which allows employees to take paid time away from the business to volunteer for a cause they care about.

  We ran our annual company culture survey which sought to engage with employees in order to determine where the business should focus to promote an inclusive and empowering culture. The results of this survey

  Gender diversity statistics

  provide Checkit with tangible insight and shines a light on where increased focus can benefit our employees and enhance our culture.

  Male

  Female

  Prefer not to say

  74% (FY24:71%)

  of respondents agree or strongly agree that Checkit's culture supports work-life balance and employee wellbeing.

  Demographic statistics

  77% (FY24:78%)

  of respondents agree that Checkit is an inclusive and diverse workplace.

  Employee age distribution

  White

  Black

  Mixed

  Asian

  60 to 69 7%

  Religious diversity at Checkit

  50 to 59 17%

  40 to 49 27%

  30 to 39 28%

  18 to 29 14%

  0% 10% 20% 30%

  We prioritise the well-being and mental health of our people and support them through the following:

  Christian

  Hindu

  Muslim

  Sikh

  • mental health first aiders;

  • two well-being days per employee per year;

  • volunteering days; and

  • a 'remote-first' flexible working policy - for work-life balance.

Other

No religion

Prefer not to say