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ClearStar shines as it achieves highest ever monthly revenues in May 2019, reiterates full year guidance

In an update to be delivered at its AGM on Tuesday, the background screening software firm said revenues in the first five months of 2019 were 14% higher than the prior year
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The company said it was receiving more interest in its services "than ever before"

ClearStar Inc (LON:CLSU) shares surged on Tuesday after the firm saw its highest ever monthly revenues in May of this year and reiterated its full-year outlook following a strong start to 2019.

In an update to be delivered at its AGM on Tuesday, the background screening software firm said the momentum from its 2018 financial year, when it reported its highest-ever annual revenues, had continued into 2019 with revenues in the first five months 14% higher than the prior year.

READ: ClearStar makes interim CFO permanent

For the rest of the year, ClearStar’s chairman Barney Quinn said the company was receiving greater interest in its services “than ever before” as a result of its sales & marketing efforts, which in turn were increasingly being converted to sales.

Meanwhile, Quinn said upselling to existing customers was strengthening its pipeline, particularly in its direct channel and Medical Information Services arms, and as a result, the firm expected “strong growth” in the full year which would be in line with market expectations.

In a note, ClearStar’s ‘house’ broker finnCap said the update showed the company was “on track” to achieve its growth forecasts despite a slight softening in the US labour market, while management was “sensibly” focusing on growing the use of its services in sectors that often rely of workers in the high turnover ‘gig economy’.

finnCap has ClearStar pegged with a target price of 90p.

In late-morning, the shares were 8.2% higher at 64.9p.

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