CV Check Ltd (ASX:CV1) has emerged from a challenging year, delivering solid achievements and positioning well to build on its successes.
The company’s business has remained resilient with a booked revenue for the year of $17.47 million, an improvement of 41% year-on-year.
Notably, the acquisition of Bright People Technologies Pty Ltd (BPT) represents a key inflection point in the strategic direction of the company.
Financial performance
CV Check ended FY21 with a strong cash balance of $12.9 million, supported by a capital raise in February 2021 of $9.9 million net of costs.
In addition, the company had a positive net cash inflow from operating activities of $1.04 million compared to the prior year negative net cash used in operating activities of $483,876.
The company realised a net comprehensive loss for the year of $926,616, which included non-recurring expenditure relating to the acquisition of BPT.
CV1’s share price is reflecting the improved outlook. From June 11, shares have risen from 12 cents to 19 cents earlier this month, a six-month high.
Acquisition of BPT
On acquiring BPT, a cloud-based provider of workforce credentials and compliance software, CV Check embarked on an integration of the two businesses, merging its management structures, beginning a process of consolidating its technology platforms, and setting itself to become an international regulatory technology company.
The combination of CV Check and BPT creates a credentials-based workforce management capability built on Bright’s workforce compliance strength and the CV Check platform’s highly automated verification workflows and human resource information system integrations.
The acquisition of BPT was completed in the fourth quarter of FY2021 with the consideration shares issued in early April and subject to voluntary escrow until December 31, 2022.
Executive changes
CV Check has appointed internationally experienced executive Micheal Ivanchenko in the role of chief executive officer.
Ivanchenko brings deep experience in rapidly developing business-to-business (B2B) and business-to-consumer (B2C) technology sectors.
In addition, the board has appointed Oliver Stewart as a non-executive director.
Furthermore, following the BPT acquisition, Jon Birman, formerly the chairman of BPT, joined the board of CV Check as a non-executive director.
Outlook for FY2022
The key macro drivers that have underpinned the CV Check’s success to date continue to play out through the world economy:
The shift to a digitally delivered service-based economy continues apace, both here in the Australasian region and around the globe. Additionally, the global pandemic has shown a need for companies to demonstrate agility and to provide their services remotely;
As much as ever, companies need to know with accuracy, the capability sets of their people and those seeking to join them;
The push for confidence in compliance frameworks, increasingly coming as much from boards and other leaders concerned with risk management as it does from governments and regulators.
- Ephrems Joseph