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.
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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.
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