The CV Check Ltd (ASX: CV1) share price has rocketed 30% on a positive first quarter FY21 update to the market.
The post Here’s why the CV Check (ASX:CV1) share price has soared 30% today appeared first on Motley Fool Australia. –
The CV Check Ltd (ASX: CV1) share price has surged today after the company updated the market with its first quarter FY21 performance. The news sent the CV Check share price surging to 15 cents, up 30%, before dropping back to 14 cents at the time of writing.
In comparison, the All Ordinaries Index (ASX: XAO) is up 0.4% at 6,191 points.
First quarter results
CV Check recorded a strong sales recovery, achieving a revenue of $3.4 million for the first quarter of the financial year. The 40% increase in revenue over the prior corresponding period (pcp) was a result of new client wins and recovering order flow from existing customers. CV Check’s B2B segment came in at $2.6 million in earnings followed by $0.8 million in its B2C division.
The company also set a new sales record for the month of September, driven by record demand for total website users and new account sign ups over the 12 months.
Furthermore, the integration of CV Check with RealMe, a digital identity verification system, jumped 156% in sales on the pcp. The platform which is operated by the New Zealand government, continues to rise on the average number of checks per order.
CV Check reported it has no debt and a cash balance of $5.2 million as of September 30.
Notable new customers
CV Check welcomed new business customers to its growing list. The new additions include Amaysim Australia Ltd (ASX: AYS), the Australian Digital Health Agency, Sigma Healthcare Ltd (ASX: SIG), Village Roadshow Ltd (ASX: VRL) and others.
The company saw these new clients place their first orders, highlighting the strength of CV Check’s range of screening and verification products.
What did management say
CV Check chief executive officer Rod Sherwood noted the company’s resilience in the face of COVID-19. He said:
A resurgence of CV1 revenues was experienced during the past quarter with record sales being achieved for the month of September despite renewed shutdowns across New Zealand and Victoria.
Our team’s agility was demonstrated in their effective, measured response to pandemic related developments in those geographies. New client wins were strong throughout the period before accelerating during September while sales to established customers recovered strongly.
CV Check share price summary
The CV Check share price has risen 326% since falling to its 52-week low of 4.6 cents in March. Although materially higher of late, the CV Check share price has barely moved since the start of the calendar year, up 3% after today’s meteoric rise.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.