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CV Check books record $4.2 million in revenue during “transformational” quarter

Published: 10:00 03 May 2021 AEST

CV Check Ltd - CV Check books record $4.2 million in revenue during “transformational” quarter
The company is encouraged by revenue growth in the past 12 months.

CV Check Ltd (ASX:CV1) booked a record $4.3 million in revenue during the third quarter of the financial year 2021, up 26% on the prior corresponding period (PCP).

The company recorded revenue of $3.2 million from the B2B segment, up from 32% on PCP, and $1 million from the B2C segment, 13% higher.

There was $11.1 million in ARR booked for the 12-month period ended on March 31, 2021, along with a record $1.65 million monthly revenue for March 2021.

Record revenue in March followed record sales in February thereby ensuring that CV1 achieved positive operating cash flow in the quarter, continuing from the first two quarters of FY21.

“Marked significant transformation”

CV1 executive chairman Ivan Gustavino said: “The quarter under review marked a significant transformation for CV1 following completion of a $10.5 million placement to new institutional investors, the acquisition of Bright People Technologies (BPT) coupled with record revenues for a month, a quarter and for the booked 12-month ARR.

“All channels performed strongly: direct sales revenue, revenues booked through integration partners and revenue from the international wholesale sales channel.

“On March 31, 2021, shareholders overwhelming approved the acquisition of BPT at a general meeting. 

“The board welcomed this vote as a resounding endorsement of the company’s chosen growth strategy.”

“The transaction was completed in early April, and integration of CV1 and BPT teams is underway.”

Record revenue

The group’s revenue for the quarter was 26% higher than the PCP with growing sales momentum as the quarter progressed.

CV1 set a new revenue record of $1.65 million for the month of March and a 12-month booked ARR of $11.1 million.

This followed record monthly sales for the month of February with sales of $1.46 million.

Customer additions

First orders were booked during the quarter from new customers including Rabobank ANZ, carsales.com (ASX:CAR), Dye and Durham Australia, Direct Control Ltd, Australian Financial Complaints Authority, Eagers Automotive (ASX:APE), Vision Australia and other well-known brands.

These client wins were aided by the CV1 platform offering a comprehensive range of screening and verification products, the broad number of integrations now in place with other key HR technology platforms, and the strong performance of our customer engagement teams.

Integrations with HR information systems and applicant tracking systems continue to underpin CV1’s growth strategy, with revenue from these channels continuing to rise strongly - Q3FY21 revenue of $500,000 exceeding PCP by 231%.

CV1 has ramped-up worldwide distribution despite the COVID-19 pandemic and international screening company Vero Screening Ltd features amongst its top 40 clients for the quarter.

Acquisition of BPT

During the quarter, CV1, through wholly-owned subsidiary Credentials Management Information Systems Pty Ltd, entered into a binding share purchase agreement (SPA) with the shareholders of CI6 Pty Ltd to acquire 100% of the issued capital of CI6 Pty Ltd, an entity that owns 100% of Bright People Technologies Pty Ltd (BPT) and associated group entities.

BPT is a SaaS cloud-based provider of workforce credentials and compliance software through the Enable and Cited brands.

The combination of CV1 and BPT will create a credentials-based workforce management capability built on Bright’s workforce compliance strength and CV1 platform’s highly automated verification workflows and HRIS integrations.

Part of the transaction will see BPT chairman and largest shareholder Jon Birman appointed to CV1’s board as a non-executive director and this will take effect from May 2021.

Bright executives Petra Nelson and Declan Hoare will join the CV1 executive management team.

The placement

During the quarter the company completed a $10.5 million placement of new shares at 16.5 cents per new share.

This was supported by new and existing institutional investors, including the company’s largest institutional investor, Australian Ethical Investment Limited.

The placement results in the issuance of around 63.6 million new shares which will rank equally with existing CV1 shares.

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