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.

| More on:
Chalk-drawn rocket shown blasting off into space

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Share Market News

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured a rough day of trading this Tuesday.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Market News

ASX 200 takes the latest RBA interest rate verdict in stride

The ASX 200 looks to have shaken off today’s RBA interest rate call.

Read more »

A mature-aged couple high-five each other as they celebrate a financial win and early retirement
Share Gainers

Why this ASX 300 stock is soaring 12% after a disastrous year

This company has had a dramatic reversal of fortunes this Tuesday...

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Core Lithium, Imugene, Lifestyle Communities, and Mineral Resources shares are charging higher

These shares are having a good session. What's going on?

Read more »

A miner stands in front oh an excavator at a mine site
Broker Notes

Broker says buy the dip on ASX 200 uranium share with 69% upside

Shaw and Partners says this ASX uranium stock is trading at an attractive price point right now.

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Domino's, Lynas, Paladin Energy, and St Barbara shares are sinking today

These shares are having a tough session. What's going on?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

4 ASX All Ords shares up 315% to 682% in a year!

Investors have sent these ASX All Ords shares flying higher. But why?

Read more »

Woman on a swing at a beach, symbolising passive income.
Dividend Investing

Overinvested in Fortescue shares? Here are two alternative ASX dividend stocks

Let’s unearth some other passive income opportunities.

Read more »