ASX-listed Online screening and verification company CVCheck has reported an 11 per cent surge in cash receipts to $2.8 million for the December quarter assisted by robust demand from corporate clients.
In an update to the market this week, CVCheck said the strong uptick in cash receipts, compared to the $2.5 million reported the corresponding period one year earlier, was helped by a 20 per cent lift in revenue from its corporate business.
According to CVCheck management, the company’s corporate accounts now make up about 59 per cent of the total revenue base, with the ASX junior confident of further top-line growth on the corporate side in 2018.
Another positive development for CVCheck in the three months to December was the sharp reduction in operating cash burn to just $200,000, 82 per cent less than the previous quarter, largely due to the receipt of a $687,000 R&D grant. .
The Perth-based company said overheads dropped 56 per cent and staff costs were down 19 per cent over the quarter as the result of ongoing cost-cutting initiatives.
The bullish operating update comes after CVCheck recently struck up a partnership that will see its unique resume screening technology integrated into the HR platform of leading Australian Human Resources software player PageUp.
The company is confident the deal will provide a lucrative additional revenue stream, which is incentivised via a revenue sharing model as part of the agreement.
CVCheck Chief Executive Officer Rod Sherwood, said: “I’m very pleased with our progress throughout calendar year 2017. The Company now enjoys high level servicing ability across corporate, SME and individual customers.”
“During the past quarter, CVCheck commercially partnered with three HR platform providers each servicing top-tier corporate clients. We have already won business as a result and are deepening these relationships.”
Mr Sherwood said the CVCheck was well positioned for growth in the Australian and New Zealand markets through 2018 as the company marches headlong towards the magical breakeven mark.
“We are excited by the addressable market opportunity given the more developed US background checking market now represents an estimated US$1.8bn per annum,” he added.
By Matt Birney
