22nd Mar 2016 12:33
LONDON (Alliance News) - ClearStar Inc on Tuesday said its pretax loss widened in 2015 due to higher costs, though revenue increased.
ClearStar, which provides technology to the background check industry, said its pretax loss for the year to the end of December widened to USD2.3 million from USD1.7 million a year earlier. Selling and marketing, research and development, depreciation and amortisation and administrative costs all increased for the company.
The extra costs were driven by the integration of Florida-based background screening company SingleSource Services Corp, which ClearStar bought for USD4.0 million in late 2014.
Sales rose across all divisions for ClearStar, with 7.2 million screening services processed in the year, compared to 6.5 million a year earlier. ClearStar also saw sales from existing clients rise through cross-selling and the introduction of new software.
"The company entered 2016 with strong revenue momentum. The company is receiving increasing demand for its services across its divisions, which it expects to continue," said Robert Vale, ClearStar's chief executive.
Shares in ClearStar were down 4.5% to 32.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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