17th Jul 2020 10:43
(Alliance News) - Shares in ClearStar Inc rose on Friday as it noted an improvement in revenue over the first half of 2020, even as the total figure is set to be lower year-on-year.
Shares in the US-based background and medical screening provider were 17% higher at 37.45 pence each on Friday in London.
ClearStar said that although the Covid-19 outbreak hurt business due to job losses and a freeze on recruitment, the company reported a significant uptick in revenue run rate from the end of May, which has continued into June and July.
Revenue for the six months to the end of June is set to be USD8.9 million, down 23% from USD11.6 million, however, revenue for the month of June was 74% higher than for April, as financial institutions prepare to return to normal employment levels, and demand for medical information services rises.
In addition, for the months of May and June, ClearStar was able to return to generating earnings before interest, tax, depreciation and amortisation.
As at the end of June, the group has net debt of USD1.4 million and available funds of USD2.2 million, and believes that it has enough funds to remain viable for the future.
"We are greatly encouraged by the strong recovery in revenue since the peak of the crisis. The areas that are driving this growth - business outsourcing, financial institutions, home healthcare - are well-positioned for the current environment and the changing needs of workplaces and individuals," said Chief Executive Officer Robert Vale.
"We have continued to win and onboard customers, and secured an important new integration that will expand our presence in home healthcare. Thanks to the decisive action we took in response to the outbreak, we have been able to generate cash to increase our available funds and sustain our business," Vale added.
ClearStar expects to publish its interim results in September.
By Dayo Laniyan; [email protected]
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