Checkit has released an upbeat H1 trading update that shows ARR continues to build rapidly – up 48% y/y to £10.2m, and so represents another strong period, after +43% ARR growth in FY22. The successful rollout of prior year wins - most notably: Grifols - a multinational pharmaceutical (worth £2.7m/3yrs) has been a key contributor. Meanwhile, further benefitting, CKT has also continued to ink new deals, for instance – expanding its role with Center Parcs (announced in May) and as well, Octapharma. This strong ARR progression has followed though into recurring revenue growth: +44% to £4.4m. Non-recurring revenue has reduced to £1.0m (PY: £4.8m) – reflecting an acceleration of CKT’s SaaS transition (already incorporated into existing forecasts). Combined, Checkit generated £5.4m of Group revenue and so leaves £5.7m in H2 to meet unchanged FY22 expectations. Cash meanwhile remains exceptionally strong at £19.5m, such that Checkit remains strategically well placed to execute on its growth strategy. From a valuation standpoint, Checkit now trades on <2x FY24E ARR, even when attributing zero value to the company’s cash resources. As such, we continue to see how Checkit offers significant upside at current levels.