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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
  • Accepted buyout offer by Hanover Bidco
Background check

Quick facts: ClearStar Inc

Price: 39.5 GBX

AIM:CLSU
Market: AIM
Market Cap: £14.36 m
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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

 

How it is doing

In September, ClearStar agreed to a buyout offer from private equity group Hanover Bidco worth 40p a share in cash.

The offer values the issued share capital of staff vetting specialist at approximately £14.7mln and represents a 23% premium to the last practicable share price.

Revenue in the six months ended June 30 was US$8.9mln compared to US$11.6mln in the prior year, while revenues in June were 74% higher than April and returned to the same levels seen in February.

The run rate experienced a significant uptick from the end of May which continued throughout June and into July.

 

What the boss says: Barney Quinn, chairman

"Having served as chairman of ClearStar since the IPO six years ago, I have been delighted to see the growth of our business, with the company now recognised as having market-leading employment and medical background screening technologies."

“However, we have not yet seen a return in much of our traditional business and the ongoing challenges created by the pandemic means that there remains significant near-term uncertainty. The Hanover offer provides us with financial certainty to continue building our business."

 

 

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Watch

ClearStar boss says business is recovering ground lost through COVID-19...

Bob Vale, chief executive of staff vetting specialist ClearStar Inc (LON:CLSU), says the company has gained back some ground in recent months due to COVID-19 and trading has picked up. Financial staffing, home healthcare and outsourcing are doing well, but Vale is more cautious over hospitality...

on 17/7/20

2 min read