ClearStar Expects Record Revenue In 2018 As Finance Chief Steps Down

LONDON (Alliance News) - ClearStar Inc said Wednesday it expects to report its highest ever ...

Alliance News 23 January, 2019 | 9:56AM
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LONDON (Alliance News) - ClearStar Inc said Wednesday it expects to report its highest ever annual revenue in 2018, while its chief financial officer has decided to step down.

Shares in Clearstar were up 10% Wednesday morning at 66.60 pence each.

The background screening software company said it expects revenue of USD20.1 million for 2018, a 13% increase on the USD17.8 million recorded the year before.

ClearStar said its revenue in the second half was 15% higher than the USD9.9 million revenue reported in the first half.

The rise in revenue, ClearStar said, was driven by its Medical Information services, where it increased 25% year-on-year. The unit accounts for 41% of the company's total revenue.

The direct services unit - which accounts for about 30% of total revenue - increased 28% year-on-year.

"This was a great period for ClearStar as we achieved our highest-ever annual revenue and positive earnings before interest, tax, depreciation and amortisation with growth accelerating throughout the year. This momentum has been sustained into the current year and, as a result, we now expect to achieve full year 2019 revenue growth of approximately 15%, which is comfortably in line with market expectations," said Chief Executive Officer Robert Vale.

ClearStar recorded an adjusted Ebitda loss in 2017, which it now expects to swing to a profit.

The company believes it is well placed to continue its accelerated growth after strengthening its product development and increased its sales team.

ClearStar also announced that Chief Financial Officer David Pattillo will step down from his role to pursue other interests. Pattillo will continue to work with ClearStar on "certain special projects" on an ad hoc basis.

The company's financial controller, Jennifer Balleza, has been appointed interim CFO.

By Paul McGowan;

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
ClearStar Inc 39.00 GBX 0.00 -

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