ClearStar,Inc. Trading Update (1501V)
January 26 2017 - 1:01AM
UK Regulatory
TIDMCLST TIDMCLSU
RNS Number : 1501V
ClearStar,Inc.
26 January 2017
26 January 2017
ClearStar, Inc.
("ClearStar" or the "Company")
Trading Update
ClearStar (AIM: CLSU and CLST), the technology and service
provider to the background check industry, is pleased to provide a
trading update for the twelve months ended 31 December 2016.
Full year 2016 was characterised by the Company achieving solid
results as it maintained its traditional client base and
successfully responded to the changing demands from the
ever-increasing 'gig economy', enabling it to gain market share
from its competitors. As a result, the Company expects to report
revenues of not less than $16 million for full year 2016, in line
with market expectations. Highlights of the year include:
-- Significant progress in direct services resulting in expected
year-on-year direct revenue growth, excluding clients from the
SingleSource acquisition, of approximately 77%.
-- Successful in targeting larger, higher-volume direct clients,
with particular demand in the transportation industry due to the
increasingly casual and transitory nature of the market.
-- Strengthened direct services sales team, along with the
introduction of the new ClearID and ClearContact solutions,
resulting in growth in organic direct services revenues mitigating
the drop in revenues due to attrition of smaller clients gained
through the SingleSource acquisition (as stated in the interim
results announcement of 27 September 2016).
-- Benefitted from the development of its global platform to
satisfy interface, compliance and architectural demands outside the
US, and the Company expects meaningful revenue contribution from
its global customers in 2017.
-- Increased demand for ClearStar's
technologically-differentiated suite of products and solutions from
its indirect client base, where the Company provides its services
on a white label basis via a Channel Partner or Consumer Reporting
Agency.
Outlook
The Company entered 2017 with a stronger client base and more
comprehensive service offering compared with last year. ClearStar
now provides a suite of advanced services, directly and indirectly,
on a global basis. With increasing demand for its direct services,
the Company expects direct sales to drive overall growth, as the
fluidity of the labour market continues to expand thereby providing
new opportunities for revenue generation.
Further details will be provided in the full year results
announcement, expected in late March 2017.
Enquiries
ClearStar, Inc.
Robert J. Vale, Chief Executive
Officer
David Pattillo, Chief Financial
Officer +1 770 416 1900
finnCap Ltd.
Jonny Franklin-Adams, Simon
Hicks - Corporate Finance
Christian Hobart - Sales +44 20 7220 0500
Luther Pendragon Ltd.
Harry Chathli, Claire Norbury +44 20 7618 9100
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.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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