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- CV Check Ltd has reported robust performance including maiden profit during the half year ended December 2020.
- CVCheck posted record revenue, which was driven by strong order growth from September 2020 onwards.
- The Company noted strong momentum in its integrations sales channel completing integrations with Livehire, TechnologyOne and RealMe.
- CV Check is on track to conclude the acquisition of Bright People Technologies, subject to shareholder approval.
ASX-listed software and services company CV Check Ltd (ASX:CV1) has been in the industry for around a decade and offers a broad array of checks across the world through its globally recognised online platform. The Company principally engages in offering online screening and verification products and services on a global scale.
The Company continues to perform strongly and has registered record revenue in the most recent quarter and half year ended 31 December 2020.
DECEMBER QUARTER UPDATE: CV Check (ASX:CV1) in sweet spot post record-setting December quarter
CV1 Registers Maiden Profit
CVCheck registered its first-ever profit during the half year aided by the receipts from the Federal and State governments, in the form of COVID-19-related support packages amounting to $0.75 million.
CVCheck’s constant focus on delivering sustainable growth helped the Company register ~$7 million in revenue versus the $6.6 million recorded during the pcp. The economic recovery gaining pace during the September quarter led CV1 to reach an all-time company record for a quarter, escalating the growth in revenues.
Source: Company Announcement 25 February 2021
Further, the surge in revenue came on the back of new sales wins along with a revival in orders among the pre-existing business customers of CVCheck, who were busy hiring fresh candidates and resuming the process of rescreening their workforces.
Financial highlights from the Company’s performance during the half-year include:
- Revenue from ordinary activities up 5% to 6,956,295 from 6,615,802 in 1H 2019.
- Total B2B revenue for the half-year grew by 6% and stood at $5.3 million versus $5.0 million in pcp.
- Total B2C revenue for the half-year stood at $1.7 million, an increase of 2%.
- Total Integrations revenue registered a growth of 115% for the half-year and stood at $0.7 million.
- Profit / (loss) after tax from ordinary activities attributable to owners was up 101% to 6,022 from the prior year loss of (874,017).
- Cash generated during H1FY21 amounted to $0.5 million.
Fresh Deals Fuelling Company’s Momentum
CVCheck inked a deal with Netforce Global LLC (US) and Vero Screening Ltd (UK), which helped the Company’s newly introduced Wholesale channel gain traction during the December quarter. Moreover, Netforce Global LLC was amongst the Company’s leading 30 clients by sales during the December quarter.
CVCheck registered direct organic B2B revenue of $4.6 million, in line with the pcp, while the Company witnessed some Direct sales B2B clients shifting to the Integrations sales channel during the half year.
The integrations sales channel of CVCheck is witnessing a strong momentum as the Company focuses on expanding the addressable market by increasing the number of available platforms where orders can be placed by customers. CVCheck’s present list of integrations includes various globally renowned brands like JobAdder, LinkedIn, Realme, SmartRecruiters, SuccessFactors, Xref, SpringBoard, Workday etc.
Also, during the half year period, CVCheck completed integrations with Livehire (ASX: LVH), TechnologyOne (ASX: TNE) and RealMe®’s verified service offering Digital ID verification.
In tandem, the Company’s direct sales to individuals remains a significant source of revenue and B2B leads.
IMPORTANT UPDATE: CV Check (ASX:CV1) clocks record revenue in Q2F21
Cash Position And Cash Flow Analysis
Notably, the Company has remained cash positive during the half year and holds no debt. The cash balance stood at $5.2 million as on 31 December 20, thanks to the strong underlying sales throughout the period.
Receipts under government assistance programs included $0.5 million under the R&D Tax Incentive program of the Australian Government and $0.7 million secured from several Federal and State government COVID-19 support packages.
Presently, the Company is in the process of acquiring Bright People Technologies, subject to shareholder approval.
Overall, CVCheck witnessed a robust demand for its check and verification services during the half year. The Company seems optimistic about further growth with potential integrations and acquisitions in the future.
DETAILED DISCUSSION AT: Why are CV Check’s (ASX:CV1) shares riding high today?
On 26 February 2021, CV1 share price quoted at $0.155 with $56.83 million market capitalisation (as at 12:40 PM AEDT).