22nd Sep 2015 11:06
LONDON (Alliance News) - ClearStar Inc Tuesday said it expects to report "significant" growth in revenue for 2015, broadly in line with market expectations, as it posted a widened pretax loss for its first half.
ClearStar provides technology and services for the background check industry.
For the half year to end-June the company posted a pretax loss of USD1.8 million, widened from a pretax loss of USD32,000 a year before, as a rise in revenue to USD7.5 million from USD5.2 million was offset by higher operating expenses, which it attributed to a rise in staff costs, and costs associated with its acquisition SingleSource.
Additionally, research and development costs was due to higher staff costs in its software development and Global division.
Revenue growth was led by a strong performance from its Direct Services segment, and bolstered by SingleSource.
"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," said Chief Executive Officer Robert Vale in a statement.
Shares in ClearStar were down 4.6% at 42.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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