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ClearStar revenues up

By BFN News | 07:42 AM | Tuesday 27 September, 2016

ClearStar's revenues increased by 6% to $8.0 million in the six months to the end of June. Gross profit increased by 10% to $5.0 million (H1 2015: $4.5 million) and ross margin increased by 190 basis points to 62.4% (H1 2015: 60.5%). Operating expenses reduced by $400,000 to $6.0 million (H1 2015: $6.4 million) and EBITDA improved by $1.0 million to a $300,000 loss (H1 2015: $1.3 million loss) Chief executive Robert Vale said: "We achieved another period of growth as we added new clients and cross-sold services to existing clients. Our Channel Partner and Consumer Reporting Agency clients continue to account for the majority of sales - whether this is for a background check or a drug screen delivered in the US or abroad. "However, we are greatly encouraged by the increasing revenues generated by Direct Services clients, which is our key growth engine. This is a reflection of our enhanced brand recognition as we rapidly transition from a purely indirect service offering to direct; the investment in strengthening our direct sales team; and our technological innovation to develop market-leading solutions. "Looking ahead, the momentum achieved in the first half of the year has been sustained into the second half of 2016. We are receiving significant interest in our recently-launched ClearID and ClearContact solutions, which are designed to cater for the increasingly casual and transitory nature of the labour market, and we expect Direct Services Division revenues to grow in the second half over the first half. "The addition of clinical testing to our WebCCF technology is expected to drive sales in this area and is further testament to our ability to innovate and introduce market-leading solutions. As a result, we continue to believe that the fundamentals of the business are sound and the strength of our offer is increasing. With the growing demand for our services across all of our divisions, the Board remains confident of achieving sustained growth and of delivering value to shareholders." Story provided by

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