• Provider of candidate background and medical screening services
• Products include range of mobile applications
• Highest ever first quarter revenues delivered in Q1 2019
What ClearStar does
ClearStar Inc (LON:CLSU) provides background check and medical screening solutions for employers to give them reliable information when hiring new staff.
The group’s products include;
• ScreenMeNow – a mobile application that allows candidates to conduct their background check using their phone with an e-signature
• ClearID – app designed to validate IDs and provide face-match technology for contract labour
• ClearContact – collates and organises contract worker contact details into a single directory
• ClearMD – drug screening and clinical testing solution that allows candidates to perform their own tests and book their own appointments
• In a trading update in April, ClearStar reported its highest ever first-quarter revenue of US$5.1mln, up 11% year-on-year
• In an update for its year ended 31 December in January, the company forecast its “highest ever” full year revenues and positive underlying earnings (EBITDA)
• In November, the company inked two new contracts for its services with an expected annual combined value of over US$1mln
In its first quarter update in April, ClearStar said it had seen a “significant increase in interest” for its solutions, with requests for proposals (requests for its services) in the quarter double that of the entirety of 2018.
As a result, the company said it continued to expect strong revenue growth in the full year, in line with market expectations.
Robert Vale, chief executive of ClearStar, said the group was seeing “very good traction” and that its increased marketing efforts, including a new sales team, were yielding “better-than-expected results”.
"We are very happy with a strong first quarter for 2019. The investments that we have made in 2018 in technology improvements and integrations have paved the path to an upmarket sales funnel with some notable wins during the period.”
In a note in April, analysts at the company’s house broker finnCap reiterated their target price for the company, saying it was “a high-growth business which should deliver solid EBITDA this year”.
finnCap currently has a 90p target price for ClearStar, a 49% premium on the share price as of close on 11 April 2019.
With the shares trading at around 60.5p, ClearStar has a market cap of £21.96mln.