ClearStar,Inc. Business and Trading Update (8893B)
October 12 2015 - 1:00AM
UK Regulatory
TIDMCLST TIDMCLSU
RNS Number : 8893B
ClearStar,Inc.
12 October 2015
12 October 2015
ClearStar, Inc.
("ClearStar" or the "Company")
Business and Trading Update
ClearStar, Inc. (AIM: CLST), the technology and service provider
to the background check industry, provides the following update on
trading and outlook for the current and 2016 financial years.
As stated in the H1 2015 results announcement on 22 September
2015, ClearStar entered the second half of 2015 with a greater
sales pipeline than at the same point in the prior year and
progress was maintained in all of its divisions.
In particular, the Direct Services division continued to expand
its customer base, including winning a contract, as previously
announced, with one of the world's largest cash handling services
companies. The contract is already at a revenue run rate of
approximately $250,000 on an annualised basis. As previously
stated, in the third quarter the Company's Global Division was
awarded its first multilingual order, in France, for employment and
residential screening. Significantly, ClearStar continued to
progress the implementation of a customised, white-labelled
solution for a world-renowned, leading global risk management
consultancy headquartered in the UK, and the contract is due to
commence generating revenue in Q4 2015. As a result, the Company is
on track to report significant growth in revenues for the year,
broadly in line with market expectations, and achieve EBITDA around
breakeven for H2 2015, as stated previously.
In conjunction with ClearStar's strategy of focusing its efforts
to invest in growth opportunities, capitalised software investment
was accelerated, leading to higher non-cash amortisation charges.
As a result of this increase, combined with a decrease in estimated
income tax liabilities due to the previously-stated delay in
profitability, the Company expects to report a loss after taxation
of approximately $2.3 million for the current financial year.
However, the Company expects to report profit-after-tax above
market expectations for the 12 months ending 31 December 2016 as it
anticipates preserving a full allowance on net deferred income tax
assets.
The Board believes that the underlying fundamentals of the
business remain strong and demand for its services across its
divisions continues to increase. Furthermore, as a result of the
restructuring announced earlier, it has the right people focused on
the right markets at a greatly reduced cost base. Consequently, the
Board remains confident of achieving sustained growth and of
delivering value to shareholders.
Enquiries
ClearStar, Inc.
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Robert J. Vale, Chief Executive
Officer
David Pattillo, Chief Financial
Officer +1 770 416 1900
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Cenkos Securities plc
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Max Hartley, Mark Connelly
- Corporate Finance
Julian Morse - Sales +44 20 7397 8900
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Luther Pendragon Ltd
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Harry Chathli, Claire Norbury,
Oli Hibberd +44 20 7618 9100
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About ClearStar
ClearStar, Inc. is a leading and trusted background check
technology, strategic services, and decision-making information
provider to employers and background screening companies.
A seven-time Inc. 5000 honouree and founding member of the
National Association of Professional Background Screeners,
ClearStar has provided innovative technology solutions to
businesses in the human capital management industry from its
corporate offices in Alpharetta, Georgia since 1995. For more
information about ClearStar, please visit: www.clearstar.net.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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