ClearStar,Inc. Trading Update and Notice of Results (9524U)
July 18 2018 - 1:00AM
UK Regulatory
TIDMCLSU TIDMTTM
RNS Number : 9524U
ClearStar,Inc.
18 July 2018
18 July 2018
ClearStar, Inc.
("ClearStar" or the "Company")
Trading Update and Notice of Results
ClearStar expects to report achievement of EBITDA positive for
H1 2018
ClearStar (AIM: CLSU), the technology and service provider to
the background check industry, provides the following update on
trading for the six months ended 30 June 2018 ahead of announcing
its interim results on 17 September 2018.
The Company expects to report its highest ever revenue for a
six-month period and achievement of positive EBITDA for the first
half of 2018 in line with market expectations. Highlights of the
period include:
-- Revenue growth of approximately 11% to $9.9 million (H1 2017: $8.9 million)
-- Adjusted EBITDA positive for the first half of 2018 compared
with a loss for the same period of 2017
-- As at 30 June 2018, the Company had net cash of $1.2 million
(31 December 2017: $1.3 million) and still has the full revolving
credit facility with Silicon Valley Bank of up to $5 million
available
-- Medical information services ("MIS") - which are delivered
directly and through channel partners - continued to be the primary
growth driver by service offering:
o Revenue increased by 27% over H1 2017
o MIS accounted for 40% of total revenues (H1 2017: 35%)
-- Sustained strong growth in the direct services business channel:
o Revenue increased by 22% over H1 2017 and accounted for 28% of
total revenue (H1 2017: 25%)
o Transportation and logistics and elderly home healthcare
industries continue to drive growth
-- Achieved key integrations to strengthen ClearStar's offer and
enhance its routes-to-market, in particular:
o ClearMD, the Company's mobile drug testing solution, is now
integrated with the three largest drug testing labs in the US and
now has mobile and drug testing services available in over 9,500
locations
o ClearStar products have "touchless" automated integration with
the SAP SucessFactors(R) Recruiting solution to streamline the
background check process
Robert Vale, CEO of ClearStar, commented: "Our stated aim for
this year was that our revenue growth would translate into
ClearStar becoming EBITDA positive and I'm pleased that we have
delivered this for the half year. The growth in revenue was driven
by the onboarding of new direct customers that were won in 2017,
primarily for background screening, and the increased adoption by
our channel partner customers of our industry-leading medical
screening services. We have also continued to strengthen our client
base through winning contracts from large, well-established
businesses and to achieve key integrations that significantly
enhance our offer as well as demonstrate how ClearStar is at the
forefront in developing and introducing market-leading innovations.
As a result, and with the sustained revenue momentum since period
end, we are confident of delivering growth in line with market
expectations for the year ending 31 December 2018."
Further details will be provided in the Company's interim
results announcement, which will be released on 17 September 2018.
Robert Vale, Chief Executive Officer, and David Pattillo, Chief
Financial Officer, will be hosting a presentation to analysts at
9.30am BST, on the day, at the offices of Luther Pendragon, 48
Gracechurch Street, London, EC3V 0EJ.
Enquiries
ClearStar, Inc.
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.
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END
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