Xref’s fast start in 2021 shows the company is perfectly positioned for the global economic recovery
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Sales through the first two months of this year were up 56 per cent to $2.5m.
2021 is shaping up as a big year for recruitment tech platform Xref (ASX:XF1), and a trading update this week confirmed the company is off to a good start.
Through the first two months of this year, Xref booked sales across its multi-channel recruitment service of $2.5m – a gain of 56 per cent from the prior year period.
That flowed through to cash receipts of $2.1m, up 36 per cent. And just as importantly, cash expenses were reduced by 28 per cent to $2.3m.
The results are reflective of Xref’s commitment to improve operational efficiencies while leveraging tailwinds from the post-COVID economic recovery as global hiring picks up.
And the company achieved those early gains during what’s typically a quieter period in the Australian market, as people return from summer holidays.
“However, by week five of 2021, credit usage had already achieved 96% recovery, representing a very promising start to the year in Australia,” Xref said.
Speaking with Stockhead, Xref CEO Lee-Martin Seymour said one of the exciting things about the company’s early sales momentum is the amount of pent-up growth still in the pipeline.
“We are doing record results despite UK and US and Canada still being in the clutches (of COVID-19),” Seymour said.
“We expect an exciting step-change once those regions come out of lockdown while continuing to implement the vaccine rollout.”
The data also shows that Xref is building off a solid base from the six months ended December 31, when the company booked record H1 revenues of $4.7m.
Along with its market-leading digital reference-check platform, Xref is also well-placed to meet the pick-up in demand through additional services including its RapidID verification solution and the Xref Lite for simple customer onboarding.
And as the company executes on key operational improvements while top line revenues continue to grow, Seymour said the business is on track to hit cash-flow breakeven by the September quarter.
With a business model ideally positioned to the ‘reopening trade’ as the world’s major economies emerge from the pandemic, Xref has given itself a “strong platform for further growth”, the company said.
This article was developed in collaboration with Xref, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.