Why the CV Check (ASX:CV1) share price is charging 8% higher

The CV Check Ltd (ASX:CV1) share price is charging higher this morning after the release of its second quarter update…

| More on:

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 started the week strongly.

In morning trade the online integrated screening and verification company's shares are up 8.5% to 19 cents.

This latest gain means the CV Check share price is now up 72% over the last six months from 11 cents.

Why is the CV Check share price charging higher?

Investors have been buying the company's shares this morning following the release of its second quarter update.

According to the release, CV Check booked a record $3.5 million of revenue in the second quarter, which was up 12% on the prior corresponding period. The majority of this was from its B2B business, which generated revenue of $2.7 million.

This led to the company delivering record half year revenue of $7 million and over $10.2 million in annualised recurring revenue (ARR). Management advised that this was driven by new client wins coupled with recovering order flow from established customers.

Pleasingly, the company was modestly cash flow positive in the second quarter, leading to it ending the period with a cash balance of $5.2 million and no debt. Some of this was attributable to $0.1 million in COVID-19 assistance early in the second quarter. However, the company does not anticipate further such receipts given the improved trading conditions.

The company's Chief Executive Officer, Rod Sherwood, was very pleased with the second quarter and first half performance.

He commented: "CV1 revenues surged during the second quarter to set all-time company records for a quarter, for a half year and for a booked 12-month ARR figure. We will provide a more comprehensive update on the quarter in coming weeks."

No comments were made on the company's expectations for the second half. This is likely to be provided to investors with the release of its audited first half results in February.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why Boss Energy, Emeco, Mineral Resources, and Plenti shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Three small children reach up to hold a toy rocket high above their heads in a green field with a blue sky above them.
Share Gainers

3 ASX 300 shares going gangbusters on Wednesday

Investors are bidding up these three ASX 300 shares today. But why?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a huge Tuesday for ASX shares, with the index resetting its record high.

Read more »

Woman holding gold bar and cheering.
Gold

Why are ASX gold shares rebounding today?

ASX investors are going for gold today.

Read more »