CV Check Ltd (ASX:CV1) has delivered a record half-year ended December 31, 2021, generating $12.8 million in revenue, up 84% from the previous corresponding period.
Notably, a full period contribution from its new acquisition Bright People Technologies bolstered the company’s revenue over the half-year.
The principal activities during the reporting period were the provision of screening and verification services and the provision of Software-as-a-Service (SaaS) based real-time workforce compliance management reporting technology systems.
Looking ahead, the company is well placed to deliver positive revenue growth over its fiscal third and fourth quarters in 2022.
Operational updates
The completion of the integration of Bright People Technologies and the commencement of the execution of the company’s CGI (Consolidate the base, Grow new markets, and Innovate) strategy has shown tangible progress in the company’s evolution from provider of screening and verification services to leading provider of international Regulatory Technology (Reg-Tech) solutions encompassing screening, verification and workplace compliance management.
Following completion of the integration with Bright People Technologies, CV Check has moved on to the market reach and messaging of its SaaS real-time compliance monitoring product, Cited.
Cited enables clients to ensure that legal, statutory, and ethical obligations are satisfied at all times in all locations and in all jurisdictions.
In doing so, it makes workplaces safer in a smarter way, and ensure compliance is met for every role, in every workplace, every day.
CV Check is confident it will be increasing client uptake of Cited in the second half of FY2022.
Furthermore, the company also continues to build on its CVCheck brand, the leading provider of background screening services across Australia and New Zealand.
Revenue highlights
CV Check recorded a revenue of $12.8 million in its first half FY2022 from the previous corresponding period’s $7.0 million
This strong first half FY2022 performance reflected robust revenue growth over both CV Check’s first-quarter FY2022 and second-quarter FY2022.
A full period contribution from the Bright People Technologies business, which was acquired by CV Check in April 2021, aided the revenue uplift achieved over the half-year
In addition, first-half FY2022 revenues included SaaS revenue of $1.2 million from the company’s real-time monitored compliance product, Cited.
The Australian business increased its revenues by 91% on a PCP basis to $11.1 million, while CV Check’s NZ arm reported first-half FY2022 revenues of $1.7 million, up 51% on PCP.
Furthermore, net cash flow from operating activities remained a positive $1.2 million in the first half of FY2022 (PCP: $0.9 million), boosted by the growth in sales across the half-year.
Forward plan
FY2022 outlook and growth strategy
CV Check has recorded a strong start in its second half of FY2022 reporting period with revenue 75.2% up for January 2022 compared to the previous corresponding period
The company is well placed to deliver excellent revenue growth over its fiscal third and fourth quarters.
Moving forward, the balance of FY2022 will see CV Check management continue to implement its CGI strategy.
As such, CV Check expects the second half to earn continued revenue from traditional screening products and is confident of seeing accelerated take-up of the company’s compliance monitoring product, Cited, and anticipates announcing innovations to supplement these revenue opportunities.