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ClearStar gross profit up nearly 50%

Financial Highlights  

• Revenues increased by 43% to $7.5 million (H1 2014: $5.2 million)

• Gross profit increased by 49% to $4.5 million (H1 2014: $3.0 million)

• Gross margin increased by 240 basis points to 60.5% (H1 2014: 58.1%)

• EBITDA was negative $1.3 million (H1 2014: negative $184,000)

• As of 30 June 2015, the Company had net cash of $4.2 million (31 December 2014: $6.5 million 30 June 2014: $350,000)

Operational Highlights 

• Increased sales across all divisions, with growth in business from existing customers and the addition of new clients and markets

• Integration of SingleSource Services Corporation (“SingleSource”) acquisition resulted in significant growth in direct sales customers with Direct Services revenues increasing to $1.8 million (H1 2014: $0.1 million)

• Medical Information Services (“MIS”) division was awarded its largest single contract to date, which is expected to be worth $1.3 - $1.5 million annually with revenue realisation anticipated to begin Q4 2015

• Processed approximately 3.6 million screening services (H1 2014: 3.2 million) on over 1.1 million people (H1 2014: 1.0 million) that were provided to over 23,000 (H1 2014: 21,000) end-users

Post Period-End Highlights 

• Significant milestone reached with the commencing of implementation of a customised solution for a leading global risk management consultancy headquartered in the UK, with revenue realisation expected to begin Q4 2015

• First multilingual order, in France, for new global platform – for employment and residential screening 

• Direct sales contract, worth c. $250,000 p.a., awarded by one of the world’s largest cash handling services companies and has been implemented 

• Headcount reduction and realignment of sales team, which is on track to reduce operating expenses by approximately $1.2 million on an annualised basis

Robert Vale, CEO of ClearStar, commented, “We are pleased to have executed on all fronts of new technology development, diversification of product offerings and expansion into international markets. This is reflected in our substantial increase in revenue, that our brand is emerging as a market leader in risk mitigation and that we have attracted some of the most accomplished sales professionals in our sector. 

“We entered the second half of 2015 with a larger sales pipeline than at the same point in the prior year, and have continued to make progress across all of our divisions. Consequently, we expect to report significant growth in revenues for the full year, broadly in line with market expectations. Looking further ahead, our strategy positions the Company to deliver strong, higher margin, growth for years to come.”  

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