ClearStar,Inc. Trading Update (4236B)
January 10 2018 - 1:00AM
UK Regulatory
TIDMCLSU TIDMTTM
RNS Number : 4236B
ClearStar,Inc.
10 January 2018
10 January 2018
ClearStar, Inc.
("ClearStar" or the "Company")
Trading Update
ClearStar (AIM: CLSU), the technology and service provider to
the background check industry, provides the following update on
trading for the twelve months ended 31 December 2017.
During the second half of the year, the Company maintained the
momentum from the first half of 2017, driven primarily by
increasing direct sales and demand for its medical information
services. ClearStar also continued to upscale its direct client
base, winning contracts with large, well-established businesses,
and made substantial progress with the on-boarding of those
customers. As a result, the Company expects to report revenue
growth and reduced loss before tax for full year 2017 in line with
market expectations. Highlights of the year include:
-- ClearStar expects to report full year 2017 revenue growth of
approximately 11% year-on-year to $17.8 million (FY 2016: $16
million), in line with market expectations.
-- Growth was driven by the Company's direct services, which
increased in revenue by 21% year-on-year, with sustained upscaling
in the direct client base and particular demand from the
transportation, on-demand labour and education sectors for
background screening services:
o Direct sales growth was primarily due to the number of active
direct client accounts increasing 18% year-on-year.
o The number of people screened by ClearStar for direct clients
increased 26% year-on-year.
-- Medical information services (which are delivered directly
and through channel partners) continued to serve as a key growth
driver for the Company, with sales increasing 20% year-on-year, and
remained a large contributor to overall revenues accounting for
38%:
o The Company continued to leverage its
technologically-differentiated solutions to attract and service
larger, higher volume clients. Notable contract wins include
IntelliCentrics, a leading provider of healthcare vendor
credentialing that has over 10,000 distinct installations across
the US, Canada and the UK, with significant progress being achieved
in the on-boarding of this customer during the year.
-- Global services achieved strong growth, with revenue
increasing 90% year-on-year to now make a meaningful contribution
to total sales, primarily due to the supply of international
records for channel partner clients.
-- Sales to channel partners - indirect services - grew by 8%
year-on-year, which was driven by increased demand for medical
information services and also supported by the growth in global
services.
-- As announced on 25 October 2017, the Company secured a
competitively-priced recurring revenue credit facility with Silicon
Valley Bank for up to $5 million for working capital purposes to
support the growth of the business. The Company ended the year with
approximately $1 million of net cash, in line with market
expectations, and still has the full facility available.
Further details will be provided in the Company's full year
results announcement, which is expected to be released in late
March 2018.
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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finnCap Ltd.
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Jonny Franklin-Adams, Simon
Hicks - Corporate Finance
Andrew Burdis, Abigail Wayne
- Corporate Broking +44 20 7220 0500
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Luther Pendragon Ltd.
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Harry Chathli, Claire Norbury +44 20 7618 9100
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This Announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 ("MAR").
About ClearStar
ClearStar, Inc. is a leading and trusted background check
technology, medical screening, 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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