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CVCheck Chief Executive Officer Rod Sherwood

CVCheck revenues hit new record after corporate focus

ASX-listed resume verification company CVCheck has posted record revenues for the fourth fiscal quarter due largely to strong results from the corporate and SME segments.

In a market update this week, the Perth-based company said it recorded revenues of $3.4m in the fourth quarter of the 2018 financial year, up 25% from $2.7m in the same quarter the previous year. Full year revenues were up 20% to $12.5m.

Cash receipts for the quarter were also up 20% from the previous corresponding quarter to $3.3m.

CVCheck said the improved result was due principally to a 36% growth in the corporate and SME segments in the fourth quarter as a result of a focus on dedicated corporate marketing, relationship building and third-party HR platform partnerships.

The New Zealand arm also benefited from a surge in NZ Children’s Worker Safety Checks due to legislation requiring all core workers to be checked by July 2018.

Demand for these checks are expected to continue in the current financial year as the statutory requirements for non-core child workers commence. They will also form at least part of the company’s revenues going forward due to the requirement that workers be re-checked every three years.

The individual segment also recorded 9% growth in the fourth quarter over the previous corresponding quarter.

CVCheck Chief Executive Officer Rod Sherwood, said: “The final quarter for FY18 reflects the continuing success of the strategic shift we implemented for the business, to increasingly build our corporate and SME customer revenues.”

“The acceleration of corporate and SME customer acquisition in recent months is very encouraging; evidence our strategies in these segments are working. Over time we believe this will deliver more sustainable, long-term order growth of a higher quality.”

Cash burn for the quarter was $700,000, bringing total cash burn for the second half of 2018 financial year to $1.1m, which is down from the cash $1.4mburn in the previous corresponding period.

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