The CV Check Ltd (ASX: CV1) share price stormed more than 35% higher in early trade today after the company released an operational update.
Details on CV Check’s update
In the operational update, CV Check reported the company had been able to maintain solid order flow in July and August. CV Check said new customer wins, especially in the buy now, pay later (BNPL) sector, had allowed the company to offset impacts of the COVID-19 pandemic.
The company’s management said new client wins in the BNPL sector had helped CV Check regain momentum. In addition, CV Check also noted a strong rise in revenue for July and August from integrations with other HR platforms.
The company said its notable clients from the BNPL sector included Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P) and Openpay Group Ltd (ASX: OPY).
What does CV Check do?
CV Check offers online background screening and verification services. The company’s multi-check technology platform provides check products to employers, industry associations and individuals.
Late last month, CV Check released its annual report for FY20. The company reported a revenue of $12.4 million for the year, with a record $6.6 million generated in the first half of FY20. CV Check assured investors that new client wins through the final quarter of FY20 had led to a recovery in the company’s revenue.
For FY21, CV Check said the company was focused on driving organic growth from higher repeat business customers. Key macro drivers in the world economy had also been identified that could drive business. These factors include the shift to a digitally delivered service-based economy. CV Check said its $3.1 million capital raise in August 2019 would help the company accelerate business growth.
The CV Check share price is currently trading more than 20% higher at the time of writing. Shares in CV Check were up more than 35% earlier today after hitting an intra-day high of 13 cents.
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Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.
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