ClearStar 2018 Loss Narrows As Revenue Grows On Stronger Sales

LONDON (Alliance News) - Background check software firm ClearStar Inc said Monday its annual ...

Alliance News 13 May, 2019 | 9:56AM
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LONDON (Alliance News) - Background check software firm ClearStar Inc said Monday its annual pretax loss narrowed as revenue increased on organic growth and strong demand for Medical Information Services.

For 2018, ClearStar reported a pretax loss of USD1.4 million, narrowed from USD1.9 million the year before, on revenue that increased by 13% to USD20.1 million from USD17.8 million.

Adjusted earnings before interest, taxes, depreciation and amortisation for the year was USD154,000, swinging from a loss of USD391,000 the prior year.

Operationally, direct sales increased by 28% to USD6.0 million, due to the expansion of a higher volume, tier-one client base, while indirect sales - which are sales via channel partners - increased by 8% to USD14.1 million, due to strong growth in Medical Information Services and increased business from larger clients.

Looking ahead, ClearStar said that the revenue momentum of 2018 had been sustained in the first quarter of 2019, with revenue for the three months to the end of March at USD5.1 million, up 11% from USD4.6 million he year before.

For 2019, the group expects to achieve strong growth in line with market expectations.

"This was a great year for ClearStar as we generated our highest ever annual revenue and positive Ebitda while continuing to strengthen our business. In particular, we achieved excellent traction in our key growth markets of Medical Information Services and direct sales, where we continued to move up-channel as well as enter new segments," said Chief Executive Officer Robert Vale.

Shares in ClearStar were up 3.5% at 60.00 pence on Monday.

By Dayo Laniyan;

Copyright 2019 Alliance News Limited. All Rights Reserved.

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

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