Here’s why the CV Check (ASX:CV1) share price has soared 30% today

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. –

Chalk-drawn rocket shown blasting off into space

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.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

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.

The post Here’s why the CV Check (ASX:CV1) share price has soared 30% today appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!