Checkit plc (LSE:CKT) has chosen independence. On 28 September 2026 the workflow and monitoring software company terminated the formal sale process it began on 26 March 2026, ended talks with the remaining parties and said it is no longer in an Offer Period under the Takeover Code. The same morning it published interim results showing a return to positive adjusted EBITDA.

What Checkit does

Checkit provides software and sensor-based monitoring that helps organisations in areas such as healthcare, food service and hospitality run operational checks and record compliance. The Business is built on subscriptions, so most of its income is recurring. LSE:CKT is listed on AIM and is part of the FTSE AIM All Share Index.

The end of the sale process

The board said three credible potential acquirers made non-binding offers after initial due diligence, at 22p, 25p and between 31p and 33p per share. It could not agree a valuation with the first two, while the third decided not to proceed because the Acquisition did not fit closely enough with its own business. Other parties gave verbal indications of 20p to 25p, which were not pursued, and of 40p, which was not progressed. On 8 September the board had said it would not consider proposals below 30p per share. LSE:CKT says it has no outstanding approaches and believes it can create value as an independent business with high recurring revenues, improving margins and cash generation.

Interim results

For the six months ended 31 July 2026, adjusted EBITDA was a profit of £0.3 million, against a loss of £0.9 million in the same period a year earlier. Management credited cost reductions and operating leverage. Recurring Revenue grew 4% to £6.1 million, representing 97% of revenue, and annual recurring revenue increased 5% to £12.8 million.

The retirement of a legacy product removed £1.6 million of annual recurring revenue but is expected to cut costs by about £0.7 million a year. Cash generated from continuing operations was £0.3 million and cash reserves stood at £2.9 million. Strategy centres on completing a unified platform and sharpening go-to-market execution.

Board changes

On 22 October 2026 Checkit (LSE:CKT) announced that non-executive director Alex Curran was stepping down, effective immediately, and that John Wilson was joining as a non-executive director. Mr Wilson previously led Elektron Technology, which sold its Bulgin Subsidiary for £105 million, with about £81 million returned to shareholders. He holds 8,851,289 Checkit ordinary shares and will sit on the audit and remuneration committees.

Sector and index context

Small software companies on AIM face a market in which recurring revenue is prized but growth is hard at modest scale. The attempted sale shows the interest that businesses of this kind can attract from trade and financial buyers, yet it also illustrates the gap that can open between a board's valuation expectations and bidders' offers.

Key risks

Cash of £2.9 million is a modest cushion for a company that has only just reached positive adjusted EBITDA. The retirement of the legacy product reduces revenue in the near term, and growth in recurring revenue was only 4%. Having rejected offers, the board now has to deliver the improvement it has promised as an independent business, and the shares may react to any perceived gap between expectations and progress.

What to watch next

Investors will follow how quickly the unified platform is completed, whether annual recurring revenue growth accelerates, and whether cash generation continues. The full-year results and any trading update will test the improvement in margins. Any renewed approach would be announced under Takeover Code rules, and the new non-executive director's views on Capital allocation may also attract attention.