Xref leverages human resources technology to post record-breaking start to new financial year

Xref ASX XF1 human resources technology company financial year
Xref has achieved 150% sales growth in July and August, up 150% year-on-year to $1.3 million.

Human resources technology company Xref (ASX: XF1) has achieved a record-breaking start to the new financial year by posting sales figures of $1.3 million for the months of July and August.

This represents more than a 150% improvement over the previous year’s figure of $500,000.

Xref’s recognised revenue for July and August 2018 was $1.06 million, up 89% over the previous year’s numbers and setting an “exciting run rate” for the current financial year.

Xref states that its strong sales in the last quarter of FY18 meant the company raked in $2.6 million – a quarterly record for the group.

Cash receipts from the first two months of the new financial year totalled $1.95 million, up 64% compared to $1.19 million last year.

According to Xref, its figures are even more impressive if considering that its strong sales momentum is emerging at a time of elevated “seasonal fluctuations” in the Australian recruitment industry and the parallel commencement of the summer holiday period in the Northern Hemisphere – typically a time with very few hires and generally low employee turnover.

New client acquisition

To exemplify its strong sales performance in recent months, Xref says that in July and August of this year, it welcomed 73 new direct clients on to its books.

New Australian clients included the Essendon Football Club, Medibank, Sydney Airport and Regis Aged Care.

In Canada, Shopify and Oppenheimer Funds began using Xref’s platform which supports the notion that its technology is entirely sector-agnostic and capable of streamlining the HR function in businesses of all size and varieties.

Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario that operates an e-commerce platform for online stores and retail point-of-sale systems while Oppenheimer Funds is one of the world’s more reputable investment firms, offering services in investment banking, financial advisory, capital markets, asset management and wealth management.

In Europe, Xref has added Focus Group in the UK and AquacultureTalent in Norway.

“Following a record fourth quarter in FY18 we have maintained momentum in July and August, and sales were more than 150% higher than the same months last year. Our clients now include 42% of the ASX Top 50 companies and we have a strong pipeline of opportunities in all of our global markets,” said Lee-Martin Seymour, CEO of Xref.

“The first few months of the financial year are traditionally difficult with lower recruitment activity. This has been a tremendous start for Xref in FY19 which sets us up for strong growth throughout the year,” said Tim Griffiths, CTO of Xref.

Technology driver

The company’s objective is to provide reliable reference checking software that can be trusted by Australian businesses to enable fast, data-driven hiring decisions.

With Xref, candidates are able to manage and monitor the progress of their references, and referees are given the freedom to complete their feedback as and when it suits them.

According to Xref, “the fully automated solution turns a slow and inconsistent task into an efficient yet valuable stage of the recruitment journey.”

Today’s news had an immediate impact on the company’s share price, sending the stock up 13% to $0.555 per share by the day’s close.

George is an award-winning market analyst who has authored articles and editorial opinion pieces for multiple publications around the world. He has written about a wide variety of topics including financial markets, stocks, trading, politics and economics.