CVCheck has reported solid growth for the December half, with revenues up 16 per cent to $5.8 million due to surging corporate demand and its strongly performing New Zealand operations. Impressive cost control at the ASX junior has also resulted in a 27% drop in general expenses and a 12% drop in employment expenses as the company races towards the magical breakeven point.
ASX-listed resume verification company, CVCheck, has revealed its half-yearly revenues jumped 16 per cent to $5.8 million as the company’s determined lunge towards the magical breakeven point continues.
In a market update this week, management said the lift in December half revenues was primarily driven by growth in its corporate business assisted by several key partnerships secured with major HR platforms.
The three partnerships, including one with leading HR software provider PageUp, enable top-tier corporate clients to easily access CVCheck’s suite of online resume verification products and services and have already created additional revenue streams for the Perth-based company so far this year.
CVCheck said corporate customers now account for 57 per cent of total revenue,, reflecting the company’s stated aim to reposition itself as a preferred B2B provider for resume checks and online verification services.
In the most recent update, the company said its top-line was also bolstered by its strongly performing New Zealand business where revenues jumped 26 per cent in the six months to December. The Australian operation also performed strongly, growing 15 per cent in the half year.
CVCheck CEO Rod Sherwood, said: “We are pleased that CVCheck continued on a positive growth trajectory for the half year as we continue on our path to become a sustainable preferred background check provider.”
“The New Zealand business was profitable for the half, whilst the Australian business continued its improvement trajectory dating from H2 FY16.”
“During the half year we secured three significant HR platform partnerships, two of which have already generated revenue in the current Q3 FY18.”
Expenses also appear to be under control at the rapidly growing ASX junior.
The December half saw employment expenses down 12 per cent to $2.3 million while other expenses dropped a significant 27 per cent to $800,000.
Meanwhile gross margins improved three percentage points to 50 per cent, with a net loss after tax decreasing 34 per cent to $1.5 million.
The upbeat announcement from CVCheck represents more positive news for the company whose services include university degree verifications, job reference checks, police record checks and bankruptcy checks.
CVCheck also weeds out dodgy job seekers by providing intel on whether a candidate has failed credit checks or been involved in shady dealings such as money laundering.
The company says it now have the capacity to conduct checks across a staggering 190 countries.