CV Check continues to post record figures as it makes strong progress on integration of BPT business

CV Check Ltd (ASX:CV1) continued to post record figures in the June quarter as it made strong progress on the integration of newly acquired Bright People Technologies business.  In the fourth quarter, it had record revenue of $6.4 million, up 262% from the previous corresponding period, while group operating cash flow was $600,000 for the quarter and $1.5 million for FY21. It ended the year with a strong balance sheet, with cash of $12.9 million and no external financing.  Continue to deliver growth CV1 executive chair Ivan Gustavino said: “As expected, the quarter under review was a significant period of consolidation for CV1 after the acquisition of BPT. “That the business was still able to deliver record revenues for a quarter and for booked 12-month ARR speaks volumes of the calibre of the team. “Across both sides of the business, all channels performed strongly: direct sales revenue, revenues booked through integration partners and revenue from the international wholesale sales channel. “On completion of phases 1 and 2 of the integration of the CVCheck business with that of BPT, it is gratifying to see the combined management team continue to deliver growth from both businesses. “The recruitment of the right CEO, which is close, will ensure CV1 is well-positioned to be a leading participant in the fast-growing global Reg Tech sector.” Record revenue & ARR Driven by the continued growth in the Australian and New Zealand economies, and the acquisition of the BPT business, group revenues surged to $6.4 million for the quarter, up 262% on the COVID-19-afflicted previous corresponding quarter. Annual recurring revenue (ARR) was a record $13.3 million to June 30, 2021, compared to $11.1 million to March 31, 2021, up 19.8%. CVCheck & BPT platforms Revenue from the CVCheck platform in the fourth quarter was up 104%, setting new records for revenue at $5.0 million compared to $2.4 million in the fourth quarter of FY20. In the June quarter, B2B revenue generated on the CVCheck platform reached a record $4.0 million. B2B integrations with HR information systems and applicant tracking systems continue to underpin growth through the CVCheck platform, with revenue from these channels continuing to rise strongly. In the fourth quarter, revenue through this channel was around $700,000, up 420% from the previous corresponding quarter. The BPT platforms, which were acquired at the start of the fourth quarter recorded revenue of $1.4 million, including $600,000 (43%) in SaaS-based revenue. The combination of CV1 and BPT creates a credentials-based workforce management capability built on the BPT workforce compliance strength and CV1 platform’s highly automated verification workflows and HRIS integrations. B2B sales CV1’s strategy to white label its screening and verification services, particularly to recognised international wholesalers within the industry continues to deliver despite worldwide disruption from the COVID-19 pandemic. Sales through this channel generated $300,000 in the quarter, and international screening companies Netforce Global and Vero Screening both feature amongst the top 20 clients (by revenue) using the CVCheck platform during the quarter. BPT integration Significant progress was made during the quarter on the integration of the CVCheck and BPT businesses, with both businesses now co-located in one premise and under the leadership of a dedicated new executive team. The first two of the three-phase integration process is now complete. The budget setting process for the 2022 financial year has focussed on integration optimisation with a strong emphasis on growth opportunities through leveraging the expanding platform capabilities. In addition to revenue and product diversification, strategies to enhance SaaS-based revenues is a core focus CEO recruitment The recruitment of a new CEO for the business has been and is a priority, with the board engaging a specialist search firm to assist with sourcing the best available candidate.