ClearStar,Inc. Trading Update and Directorate Change (8194N)
January 23 2019 - 1:00AM
UK Regulatory
TIDMCLSU TIDMTTM
RNS Number : 8194N
ClearStar,Inc.
23 January 2019
23 January 2019
ClearStar, Inc.
("ClearStar" or the "Company")
Trading Update and Directorate Change
ClearStar, Inc. (AIM: CLSU), the technology and service provider
to the background check industry, provides the following update on
trading for the year ended 31 December 2018.
The Company expects to report its highest ever annual revenue
and achievement of positive EBITDA, both in line with market
expectations. Highlights of the period include:
-- Annual revenue growth of approximately 13% to $20.1m (2017:
$17.8m) with acceleration throughout the year - H2 2018 revenue was
15% higher than H2 2017
-- Adjusted EBITDA positive for full year 2018 compared with a loss for 2017
-- Strong revenue growth in direct services business channel of
28% year-on-year - accounting for approximately 30% of total
revenue (2017: 26%) - with H2 2018 direct services revenue being
34% higher than H2 2017
-- Expanded tier 1 direct client base - winning new customers
such as Parsons Corporation and Stevens Worldwide Van Lines
-- Medical information services ("MIS") continued to be the
primary growth driver by service offering, with revenue increasing
25% year-on-year and accounting for 41% of total revenue (2017:
37%)
-- Strengthened the Company's foundations for accelerated future
growth through product development, integrations and enhanced sales
team:
o Significantly expanded the direct sales team in the second
half of the year, resulting in increased pipeline
o Now the only provider offering paperless medical screening
with a fully-customisable user platform across all three major
laboratories in the US following integration with Alere, Inc.
o Achieved "touchless" automated integration with SAP(R)
SuccessFactors(R) Recruiting
o Gained further routes-to-market through partnerships with
Veritas Prime and iCIMS Inc.
o Enhanced MIS product offering with launch of self-service
portal for ordering drug and clinical tests that enables
customisation and management by channel partners
Directorate Change
The Company also announces that Mr David Pattillo has decided to
step down from his position as the Company's Chief Financial
Officer and as a Director to pursue his other interests. Mr
Pattillo will continue to work with the Company on certain special
projects and initiatives on an ad hoc basis. Ms Jennifer Balleza,
who has been the Company's Financial Controller since June 2014
prior to the IPO, has been appointed Interim CFO.
Robert Vale, CEO of ClearStar, said: "This was a great period
for ClearStar as we achieved our highest ever annual revenue and
positive EBITDA with growth accelerating throughout the year. This
momentum has been sustained into the current year and, as a result,
we now expect to achieve full year 2019 revenue growth of
approximately 15%, which is comfortably in line with market
expectations. We are at a true inflexion point as the increase in
our brand awareness and value, combined with a strengthened sales
function, are enabling us to successfully target larger,
higher-volume customers.
"On behalf of the Board, I would like to thank David for his
invaluable contribution to ClearStar. During his time as CFO, we
have transitioned to becoming a public company, solidifying our
strategy and are now in a stronger position than ever before. We
wish him all the best for his future endeavours."
Enquiries:
ClearStar, Inc.
Robert Vale, Chief Executive Officer +1 770 416 1900
Barney Quinn, Chairman +44 7860 883 847
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finnCap Ltd. +44 20 7220 0500
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Jonny Franklin-Adams, Simon Hicks
- Corporate Finance
Andrew Burdis - ECM
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Luther Pendragon Ltd. +44 20 7618 9100
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Harry Chathli, Claire Norbury
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The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
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.
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END
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