ClearStar,Inc. Trading Update (0682X)
December 17 2019 - 1:00AM
UK Regulatory
TIDMCLSU TIDMTTM
RNS Number : 0682X
ClearStar,Inc.
17 December 2019
17 December 2019
ClearStar, Inc.
("ClearStar" or the "Company")
Trading Update
ClearStar (AIM: CLSU), a provider of Human Capital IntegritySM
technology-based services specialising in background and medical
screening, provides the following update on trading.
The Company has continued to experience excellent sales momentum
and, as a result, expects to report revenue for full year 2019 in
line with market expectations at approximately $23m, representing
year-on-year growth of 14%.
This reflects stronger than expected growth in the fourth
quarter in its medical information services ("MIS") revenue.
However, revenue generated by financial institutional screening has
been lower in the fourth quarter than previously anticipated due to
the impact on the financial services industry of political
uncertainty in the US and abroad and market realignments. The
customer has notified ClearStar that it expects these projects,
which had been scheduled for 2019, to occur in 2020.
The alteration in product mix, with a higher-than-anticipated
contribution from MIS, which is a lower margin business, is
expected to have a negative impact on adjusted EBITDA. In addition,
the Company has made certain investments in cloud data management,
security compliance and sales team infrastructure to support the
Company's growth in 2020 and beyond. Consequently, the Company
expects to report adjusted EBITDA for full year 2019 of
approximately $0.3m.
However, the Board remains encouraged by the Company's progress
during the year to date, with key highlights including:
-- Revenue growth of approximately 15% to $21.5m for the 11
months to 30 November 2019 (same period 2018: $18.7m):
o Sustained revenue growth in direct services business channel
of 36% over the same period in 2018 - with direct services
accounting for approximately 35% of total revenue (same period
2018: 30%)
o Medical information services (MIS) continued to be the primary
growth driver by service offering, with revenue increasing 23% over
the same period in 2018
-- Growth supported by strong recurring revenue and upselling of
further services with some of the Company's largest existing
channel partners customers, primarily for MIS
-- Following the expansion of the direct sales team at the
beginning of the year, ClearStar has continued to increase its
pipeline with sustained transitioning up-channel to higher value
prospects
Looking further ahead, the Company's order book is at its
highest ever and ClearStar has a healthy pipeline that it expects
to convert to further orders in 2020 as it continues to receive
increasing demand for its technologically differentiated solutions.
The Company's management is also focused on taking steps to reduce
operating expenses and cost of revenue. Consequently, while
remaining cautious over the potential impact of global political
economic uncertainty, the Board remains confident in ClearStar's
future prospects.
Enquiries:
ClearStar, Inc. +1 877 796 2559
Robert Vale, Chief Executive Officer
Jennifer Balleza, Chief Financial Officer
-----------------
finnCap Ltd. +44 20 7220 0500
-----------------
Jonny Franklin-Adams, Marc Milmo, Simon Hicks
- Corporate Finance
Andrew Burdis, Tim Harper - ECM
-----------------
Luther Pendragon Ltd. +44 20 7618 9100
-----------------
Harry Chathli, Claire Norbury, Joe Quinlan
-----------------
About ClearStar
ClearStar, Inc. is a leading provider of Human Capital
IntegritySM technology-based services specialising in background
and medical screening. It provides employment intelligence direct
to employers and via channel partners/consumer reporting agencies
("CRAs") to support better recruitment and other decisions
affecting employees by increasing the quality, reliability and
visibility of information.
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTGGGPAPUPBPPQ
(END) Dow Jones Newswires
December 17, 2019 02:00 ET (07:00 GMT)
Clearstar (LSE:CLSU)
Historical Stock Chart
From Apr 2024 to May 2024
Clearstar (LSE:CLSU)
Historical Stock Chart
From May 2023 to May 2024