Services firm Checkit Plc (LON:CKT) flagged an 18.2% drop in revenues during the second quarter as the coronavirus (COVID-19) pandemic delayed the sales process.
The company noted that recurring revenue held up, rising 6.2%, but was offset by a 29.7% reduction in non-recurring revenue.
Over the first half, recurring revenue increased by 23% boosted by conversions of existing calibration and maintenance contracts whilst non-recurring revenue was down 6.8%, and total revenue was up 2.3%.
“The board is continuing to rely on its recurring revenue as its base case for internal planning purposes,” Checkit said.
“Recurring revenues have been resilient through the first half of the current financial year, whilst the non-recurring installation and project based revenues have seen a significant fall of approximately 30% in the second quarter compared to the first quarter of the current year.”
Interim results are expected to be released on September 16.
Published at Wed, 12 Aug 2020 08:32:00 +0000-Checkit revenue drops 18% in Q2 as COVID-19 delays sales