CV Check Ltd (ASX:CV1) ended 2021 strongly being cash flow positive from operations during the first half of FY2022 and notching up record quarterly and half-year revenue, setting itself up for further growth in the second half of the financial year, which is traditionally the company’s stronger period.
This provides a very strong footing as CV1 moves further into the execution phase of growing the SaaS business already established and towards further international expansion.
Record revenue
The company recorded revenue of $6.5 million in the December quarter, which is an 83% rise on the prior corresponding quarter, and total revenue of $12.8 million for the first half of the year, an 84% rise on the previous corresponding period.
This includes SaaS revenue of $1.2 million from CV1's real-time monitored compliance product, Cited.
The revenue drove cash receipts of $8.3 million for the quarter, which is up 35% on the previous corresponding period.
CGI strategy showing results
CV1’s CEO Michael Ivanchenko said, “The completion of the integration of Bright People Technologies and the commencement of execution of the company CGI (Consolidate the base, Grow new markets and Innovate) strategy is showing results.
"We continue to see strong growth in the pre-employment screening market through our returning business customers utilising more of our screening services including our COVID Vaccination checks.
"We are experiencing unprecedented interest in our SaaS real-time compliance monitoring product, Cited, and progress continues on key innovations which we look forward to announcing soon.”
Strong cash position
The group’s strong performance during the half came despite the effects of the repeated lockdowns and uncertainty related to the pandemic and whilst completing the integration of Bright People Technology.
CV1 generated $1.2 million in cash from its operating activities across H1FY22, with a closing cash balance of $12.2 million at the end of calendar year 2021.
The cash position includes one-off payments made during the first half of the year including the finalisation of the BPT acquisition which reduced the cash balance by $1 million.
"The operating activities of the business continue to generate cash,” Ivanchenko said.
"The business is exceptionally well placed as we move into Q3 and Q4, which have historically been CV1’s strongest quarters for revenue.”
About CV Check
CV1 is a leader in the provision of real-time workforce compliance management and reporting technology.
Its cloud-based product suite is used internationally for dedicated pre-employment screening and daily workforce compliance management.