Cannacord Update

Valuation raised to 80 cents. Brief summary below.

Resume Check is a leading provider of pre-employment screening in New Zealand. It offers approximately 18 checking services, including resume database checking, employment history, drivers license, qualifications checking, credit checks, criminal & driving convictions, accident compensation history and immigration status.  The potential growth profile of this business, with the addition of CV Check’s technology platform and the potential growth in customers (both enterprise and consumer) in the NZ market over the next few years, justifies the investment in our view. From a strategic point of view, they have secured the services of an experienced Executive in the NZ market, who will act as a key man on the ground of this new region.  Our blended valuation (DCF and EV/EBITDA) has increased as a result of the higher future revenue and earnings forecasts, to A$0.80/share (from A$0.75/share). We maintain our Speculative BUY rating