CV Check (ASX:CV1) riding high on 'transformative' FY21; reveals 2022 strategy

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CV Check (ASX:CV1) riding high on 'transformative' FY21; reveals 2022 strategy

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CV1, High revenue growth in FY21
Image source: © Hello6373 | Megapixl.com

Highlights 

  • CV Check Limited is a leading Regulatory Technology (RegTech) company, growing on the back of digital transformation and increasingly complex compliance requirements.
  • CV Check registered a revenue of AU$17.5 million in FY21, 41% up on the previous year.
  • The group aims to consolidate the foundation of its pre-employment screening service, boost B2B progress and carry forward clear segment growth.

A leading global player in the Regulatory Technology (Reg Tech) space, CV Check Limited (ASX:CV1) is growing by leaps and bounds on the back of digital transformation and increasingly complex compliance requirements. The demand for digital workforce compliance monitoring and management has soared across industries on a global front. This has acted as a tailwind for CV Check, which has reported a ”transformative” FY21.

YOU MAY READ: What makes CV Check (ASX:CV1) stand apart in the RegTech sector

CV Check boasts strong capital position

CV Check registered a revenue of AU$17.5 million in FY21, an increase of 41% on the previous year. It secured Annual Recurring Revenue (ARR) of AU$13.3 million in 12 months to 30 June 2021. The gross margin for the firm was recorded at 59%.

The net cash inflow from operating activities was AU$1 million in FY21, while it had AU$12.9 million in cash as of 30 June 2021.

ALSO READ:  CV Check’s (ASX:CV1) robust FY21 paves way for a brilliant year ahead

 Merger of CV Check and BPT

Image source: © nespix | Megapixl.com

CV Check and Bright People Technologies: A synergistic merger

CV Check completed the acquisition of Bright People Technologies (BPT) in the fourth quarter of the fiscal year 2021 (Q4 FY2021). BPT is a software-as-a-service (SaaS) cloud-based provider of workforce credentials and compliance software.

Following the completion of the acquisition, the product offering has been widened from hiring departments to full workforce relevance. Now the company offers an advanced solution for higher-level problems.

The acquisition is a strategic move for CV1, given there is scope for an impressive rise in the demand for digital workforce credentials on a global level. The merger provides CV Check with a SaaS based platform, widening its prospects for great success in a complementary segment.

Road Ahead

The company is on track to execute its twofold strategic plan to fuel business growth in FY2022. Phase 1 of the strategic plan includes CVCheck/BPT Integration that has been already completed. Phase 2 of the plan involves consolidating the foundation of its pre-employment screening service, boosting B2B progress and carrying forward clear segment growth. The company will target bundling and long-term contracts for profitable growth.

The group will ensure its clients make progress in the market with compliance monitoring and management. Last but not the least, it aims to drive innovations that would help CVCheck stand out on a global front.

CV Check and BPT strategic plan execution

Source: ASX update, 29 November 2021

Stock information: CV1 stock closed at AU$0.150 on the Australian Securities Exchange (ASX) on 30 November 2021, with a market capital of AU$62.78 million.

RELATED ARTICLE: CV Check ticking all right boxes to excel in the booming RegTech space

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