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Leading online integrated screening and verification company, CV Check Ltd’s (ASX: CV1) on 27 February 2020, declared its first half results FY20 results. The Company reported a 9% increase in revenue to $ 6.6 million for the half year ended 31 December 2019 (1H FY20) on the back of continued growth recorded across the business.
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1H FY20 - Marking Exceptional Growth
Financial Highlights
The Company continues to focus on building a sustainable business through growing recurring B2B revenues. Consequently, CV Check’s all key business metrics and channels exhibited growth while B2B revenues from New Zealand operations and HR Information System Integrations performed exceptionally well, underpinned by continued growth in the Australian operations.
There was a 5% increase in total Australia revenues to $ 5.5 million as compared to the prior corresponding period (pcp) and 30% increase in revenue from New Zealand operations to $ 1.1 million on pcp. Overall, the revenue from the B2B operations expanded 11% to $ 3.9 million while the revenues from integrations in H1 FY20 skyrocketed 229% on pcp.
Furthermore, the Company’s booked annual recurring revenue touched $ 9.8 million for the 12 months ended 31 December 2019. The Gross margin also expanded to 56% from 54% on pcp while marketing expenditure experienced a dip of 9% to $ 535k on pcp.
Capability Expansion
The highly impressive results for 1H FY20 demonstrate that CVCheck has positioned itself for further organic growth by increasing the size of its business development, marketing and customer service teams in Australia.
Additionally, the Company has also implemented a restructure of the C-Suite Executive Leadership group with the objective of further accelerating its strategic and revenue growth agendas through the appointments of Mark Thompson as Chief Revenue Officer and Jenny Cutri, Company Secretary, as Chief Compliance Officer announced in November 2019.
CVCheck had finalised the C-Suite Executive Leadership group in February 2020 with the appointment of Jason Margach as Chief Operating Officer and internal appointment of Colin Boyan as Chief Strategy Officer. Meanwhile, James Sutherland remains as the Managing Director for the Company’s New Zealand operations.
New Collaborations
During the half year, CVCheck announced to have completed an integration with SmartRecruiters and also executed a strategic alliance with Xref Limited (ASX:XF1). Very recently, the Company reported that Phase 1 development has gone live inside the Xref platform and a customer launch event was also organised in February 2020 to a very positive reception.
Presently, CVCheck has 8 HR information system integrations and connectors enabled with several more builds currently in progress. These integrations, as indicated above delivered very strong growth of 229% on pcp and now make up 7% of the total B2B revenues of CVCheck.
The Company also saw first orders received from a broad range of industries and tier-one companies including Volkswagen and Panasonic during the half year, and 18 large enterprises now use CVCheck’s cobranded white label platform.
“We are continuing to work towards our growth objectives as we further concentrate on adding high-quality revenue through generating recurring revenue from an increasingly diversified customers base.
Our focus on building and executing on strategic integrations gained significant momentum in the first half with revenues increasing 229% on the previous period which we expect to continue to grow from a low base. This is demonstrated with the alliance we have with Xref, which has already been successfully launched during February 2020, and CV1 expects that this solution will begin attracting significant interest from enterprise customers.” - Mr Rod Sherwood, CEO, CVCheck Limited
CVCheck closed the year on a strong note with $ 5.8 million cash as at 31 December 2019.
Stock Information: CVCheck has a market capitalisation of around $ 21.33 million and ~ 292.2 million shares outstanding. On 19 March 2020, the CV1 stock settled the day’s trade at $ 0.070.
