Checkit raising £21m to accelerate strategy, strengthen offering

Software company Checkit announced on Friday that it was raising £21m through a placing, to accelerate its strategy and strengthen its product offering.

The AIM-traded firm said it was conditionally placing shares at a price of 46p each to raise the funds.

Its board said it would use the net proceeds to take advantage of the “significant” opportunities presented by a growing “deskless worker” industry, by accelerating its go-to-market strategy and strengthening its product offering.

Specifically, it said it would use the proceeds to expand its sales reach to address the global market opportunity, as well as to target the expansion opportunity within its existing customer base, and develop strategic partnerships and alliances to further accelerate customer acquisition and drive annual recurring revenue growth.

It said it would also invest in marketing initiatives to communicate its brand and value proposition “clearly and effectively”, and increase its market share in North America with a long-term plan for the region to become the leading contributor of annual recurring revenue.

Checkit said it would also invest further in its product to support an expanded set of use cases, improve platform compatibility to integrate with a greater number of ‘internet-of-things’ sensors, enhance its analytics and insights dashboard, and transition its Building Energy Management Systems (BEMS) business unit to a software-as-a-service model.

“The directors expect to begin investing these funds immediately and intend to allocate approximately 50% of the net proceeds to the expansion of the group's sales reach and marketing initiatives, and approximately 50% to product development including the transition of BEMS to a software-as-a-service model,” the Checkit board said in its statement.

At 0952 GMT, shares in Checkit were down 1.71% at 47.18p.