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ClearStar leverages technology for competitive edge in candidate screening sector

Snapshot

  • Provider of candidate background and medical screening services
  • Products include range of mobile applications
  • Medical business surpassed US$1mln monthly revenues in August
Background check

Quick facts: ClearStar Inc

Price: 54 GBX

AIM:CLSU
Market: AIM
Market Cap: £19.64 m
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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

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

Inflexion Points

  • In February, the company won its first contract in the facilities management field worth at least US$400,000 a year
  • 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 in February commenting on the facilities management contract, analysts at ClearStar's house broker finnCap, which pegs the group with a 90p target price, said the deal reflected "the upscaling of the client base with the increasing recognition of ClearStar in the market".

"Facilities management is an industry with great growth potential and the screening will help ensure the safety and security of the workplace by verifying the individuals who are entering; particularly relevant when it involves a large number of external service providers."

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Watch

Full interview: ClearStar lands first contract in facilities management sector

ClearStar (LON:CLSU) CEO Bob Vale describes as “another fantastic customer win” a screening services contract with a leading facilities management company. Worth at least US$400,000 a year, it is the firm’s first in the facilities management field and Vale tells Proactive London why the deal...

2 weeks, 5 days ago

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