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AIM WINNERS & LOSERS: Checkit earnings reach surprise break-even

ALN

The following stocks are the leading risers and fallers on AIM on Thursday.

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AIM - WINNERS

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Checkit PLC, up 10% at 19 pence, 12-month range 11.25p-21p. The Cambridge, England-based workflow management software provider says full-year adjusted earnings before interest, tax, depreciation and amortisation are at break-even for the year ended January 31, ahead of market expectations and against the prior year’s £2.3 million loss. Notes the delivery of £4.0 million in annualised cost savings. Net cash also surpasses market expectations to reach £3.0 million as of January 31, up from £2.7 million on July 31, after ‘a cash-generative’ second half. Group revenue decreases 2% to £13.7 million from £14.1 million the year before, while annual recurring revenue decreases 1% to £14.3 million but rises 2% at constant currency. Recurring revenue increases to 96% from 94% of total revenue. Checkit ‘enters FY27 with a materially lower cost base, improved operational discipline and a high quality pipeline compared with the prior year,’ the firm says. ‘In the year ahead, the group will continue to refine its resource allocation, with increased emphasis on its core platform...Investment focus is now shifting towards growth initiatives, including the rollout of a new user interface and continued development of the platform’s operational intelligence capabilities, while maintaining tight financial discipline.’

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boohoo Group PLC, up 8.3% at 19.5 pence, 12-month range 10.4p-28.75p. The online fast fashion retailer has completed its equity fundraise, which was ‘significantly oversubscribed’, issuing 222.2 million shares at 18p per share. Raises gross proceeds of approximately £40 million, due to ‘investor demand significantly in excess’ of the planned £35 million. Expects gross proceeds to be £38.7 million. Fundraise comprises a placing of 200.0 million shares and a subscription for 22.2 million. ‘We are pleased with the strong level of support from new and existing shareholders,’ CEO Dan Finley. ‘The success of the fundraise demonstrates the strength of support for our multi-year turnaround strategy.’ Non-Executive Director Iain McDonald, who participated in the fundraise, steps down effective immediately after nine years on the board, to facilitate participation by ‘certain funds’ which he manages.

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AIM - LOSERS

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Kitwave Group PLC, down 1.2% at 292.5p, 12-month range 200p-334p. Says group revenue during the three months ended January 31 was in line with the previous year, but that lower-than-expected demand in the hospitality sector resulted in an unfavourable revenue mix that has negatively impacted its gross profit margin. Says continued investment in its South West depot, and overhead inflationary pressures like increases in the national minimum wage, have also negatively affected profitability. Adds that its adjusted operating profit was materially behind the board’s expectations. Expects margin pressure to continue throughout its current financial year, which ends on December 31.

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