Results for the six months to July saw CKT take another step towards EBITDA breakeven as LBITDA decreased to £0.5m (1H25 £1.4m) through +3% y/y revenue growth and some benefit from the rationalisation of £3m of annualised costs, which completed in June. H2 should benefit from a full period of these savings, and focus can now return to growth. The pent-up demand for CKT’s solutions is demonstrated by CKT’s well progressed pipeline and backlog of orders, suggesting our (unchanged) forecasts may be conservative. Additionally, the renewal of two large US customers despite the ongoing US uncertainty and FX headwinds is encouraging. We believe this vote of confidence demonstrates customer’s belief that CKT’s products can improve their operations and margins. We maintain our 22p TP (1.3x FY26 sales).
