Checkit update doesn’t reassure investors

AIM-listed Checkit (LON:CKT) saw its share price drop by 3.47% to 34.75p (as of 15:30 BST) after  providing a COVID-19 update. Management said that there were early signs of recovering demand for building management systems, with healthcare opportunities particularly strong, but the timing and level of purchases remain difficult to estimate. The board are using the company’s recurring revenues as a base case for planning and several employees are furloughed as the firm tightly manages its cash position.

Due to auditing delays, the final results for the year ended 31st January have been delayed, but the valuation of intangible assets on the balance sheet at the time of the results will be robustly tested.