We invested in our growth to enable us to capitalise on the ever-growing demand that we are receiving as customers increasingly recognise the value that our solutions can add to their screening programmes - to benefit both the employer and the employee
CEO Robert Vale
What ClearStar does
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 its half-year results, ClearStar reported that sales in its medical information services (MIS) business had increased by 25%, mainly due to its channel partners buying additional services, while an expansion of its higher-volume, tier 1 client base had lifted direct sales by 49%
- In early September, the firm achieved security accreditation ISO/IEC 27001:2013 for its information security, cybersecurity and privacy protection systems
- In August, the company’s MIS business posted monthly sales in excess of US$1mln for the first time
Interview- chief executive Robert Vale
How it’s doing
In the six months ended 30 June, the company’s revenues rose 17% to US$11.6mln, while adjusted earnings (EBITDA) excluding certain non-recurring expenses, rose to US$191,000 from US$65,000.
Losses before tax increased to US$914,000 from US$645,000.
ClearStar also said the revenue momentum from its first half had continued into the second as previously won contracts ramped up, with revenues for the year to the end of August up 18% on the same period a year ago.
As a result, the company expects “strong revenue growth” for the full year, adding that trading was in line with its expectations.
What the broker says
In a note on the company’s first half results in September, analysts at ClearStar’s house broker finnCap reiterated their 90p target price on the stock and lifted their sales forecasts for the year, citing a “very healthy US labour market” and the wider range of services offered by the company’s medical screening arm as “key drivers” for growth.
As of 27 September, ClearStar’s shares are trading at 63.5p, a 42% discount to finnCap’s target price, with a market cap of £23.1mln.