Clrstar (DI/S) Share Discussion Threads

[p1nkfish] 05/9/2017 08:08

If I'm not mistaken CLST holders could see a decent tick-up once only one class of share is made available. I did buy CLST, not CLSU, but more out of ignorance than anything else. A while back.

See what happens.

[brummy_git] 04/6/2017 07:44

P1nkfish

The CREST traded ticker for Clearstar is CLSU, not CLST which is for restricted stock only in certificate form. The management team have been buying quite consistently for a while, which I suspect has now removed the Ennismore overhang.

[p1nkfish] 03/6/2017 17:45

Could be about to turn a corner. Doing some digging.

Can't say I'm keen on the idea of commoditising people and screening for the Gig type economy, especially in poorer countries (LatAm), but perhaps better than no job prospects at all.

Pulls together job trends, cloud, security, big data, cross border, mobile etc.

Has some very interesting capabilities that could applied elsewhere including migration and security. Facial recognition etc.

Still digging.

[p1nkfish] 03/6/2017 15:03

Nothing since 2016?
Unloved.

[proactivest] 22/3/2016 15:14

Video interview with Bob Vale



Bob Vale, chief executive officer at background checking company ClearStar (LON:CLST), tells Proactive Investors growth in 2015 came from the direct sales division as it unveils preliminary results for 2015.

Vale says the company is witnessing a decentralisation of the job market in the US, which it is becoming more aligned with the "shared economy".

This should lead to further growth opportunities for the company, he says.

[noli] 16/10/2015 06:49

What does seem likely to happen is that they have invested heavily since listing and are now seeing the benefits after the purchase and expansion.

These guys have never raised any cash prior to listing and they could have continued to grow without listing. What seems to have happened is that they needed a listing for more visibility in the industry and could grow much faster with cash.

Now the growth numbers speak for themselves so it really should be a matter after expansion of picking up more customers/contracts in different markets like the French and British.

This says it all really:

The Board believes that the underlying fundamentals of the business remain strong and demand for its services across its divisions continues to increase.

Furthermore, as a result of the restructuring announced earlier, it has the right people focused on the right markets at a greatly reduced cost base. Consequently, the Board remains confident of achieving sustained growth and of delivering value to shareholders.

[noli] 16/10/2015 06:30

No idea oilbuy, but this does look a very interesting sleeper stock where very few have any idea it exists.

Once investors learn of this stock and take an interest then it will fly with only 36 million shares in circulation and 84% held by the bod and funds.

The early birds will catch the worm, especially when so few shares are around. It all looks good on paper and record growth looks set to continue, they have just expanded into other markets and have won a French contract.

[noli] 16/10/2015 06:20

As previously stated, in the third quarter the Company's Global Division was awarded its first multilingual order, in France, for employment and residential screening.

[oilbuy] 16/10/2015 06:19

No volume noli !Is it about to arrive ?

[noli] 16/10/2015 06:17

End of year for these guys is 31 December, so the Q4 payments for the large contract will have started generating cash. The do state they intend targeting larger companies, it does look like its just a matter of time before they get another award of a large contract.

[noli] 16/10/2015 05:56

Someone has been buying CLST in small amounts for a few weeks now.

[noli] 14/10/2015 06:49

The Company’s MIS division provides an automated web-based drug and alcohol testing and results review service primarily for employers but also direct to employees. ClearStar has now integrated its online drug and alcohol testing laboratory registration and electronic custody and control form (WebCCF) technology with mobile wallets to enable a completely paperless drug screening process. The benefits for the applicant include the drug test form being deposited in the virtual wallet on the applicant’s phone – in the same way as a boarding pass, event ticket or coupon – and displays the address, phone number and hours of operation of the collection site (where the sample will be taken to be tested). In addition, it automatically integrates with the phone’s features, such as calendar and location services for map or route planner to generate automatic reminders and the auto-loading of the test form on the lock screen as the applicant nears the collection site.

[noli] 14/10/2015 06:13

This I find very interesting: something very new that no-one else offers.

in July 2015, ClearStar signed a contract with an EU-based screening company, located outside the UK, to license ClearStar's new global platform for both background screening and tenant screening. This will be the first multi-lingual implementation of the system. The deal is further evidence of the value of a single multilingual global platform with the ability to provide in-country data residency - something that no other vendor offers.

[noli] 14/10/2015 06:05

The two main opportunities that the Company invested in earlier than anticipated are:

(a) Entry into the UK screening market with the signing of the Company's first agreement with a world-renowned, leading global risk management consultancy for the development and hosting of a white-labelled, customised solution. The estimated investment for 2015 associated with this initiative is $1.8m. This investment is primarily attributable to cost associated with capitalised software, human resources, and the UK datacentre lease. This has resulted in the creation of a new platform that supports international data elements and user interface globalisation, along with establishing a datacentre presence to meet UK and EU security and privacy requirements.

Additionally, in July 2015, ClearStar signed a contract with an EU-based screening company, located outside the UK, to license ClearStar's new global platform for both background screening and tenant screening. This will be the first multi-lingual implementation of the system. The deal is further evidence of the value of a single multilingual global platform with the ability to provide in-country data residency - something that no other vendor offers.

(b) Strengthening and expanding the Company's direct sales and service team to capitalise on attractive market opportunities within the growing US screening market. The estimated investment for 2015 associated with this initiative is $1.6m. The addition of several experienced sales people and operational support personnel has enabled us to go upmarket and resulted in the increase in the direct sales pipeline to over $10m in annualised revenues.

[noli] 14/10/2015 05:43

The above comment was in July 2015: Additionally, in July 2015, the Company won a direct sales contract with a division of one of the world's largest security companies, with anticipated initial revenues of approximately $250,000 annually.

In the 12 October 2015 update, they were clearly on track for the 250k per annum in just 3 months. That deal alone looks like it will clearly exceed the annual 250k revenue expected.

12 October 2015
In particular, the Direct Services division continued to expand its customer base, including winning a contract, as previously announced, with one of the world's largest cash handling services companies. The contract is already at a revenue run rate of approximately $250,000 on an annualised basis.

That is in just 3 months.

[noli] 14/10/2015 05:36

The MIS division was awarded its largest single contract to date in February, which is expected to be worth $1.3m-$1.5m annually, which is due to start generating revenue in Q3 2015, which is a slight delay from that originally anticipated. This service will be delivered via the Company's paperless chain of custody software (WebCCF). In the newly-formed Direct Services division, the integration of SingleSource expanded ClearStar's number of direct sales customers to over 2,000. Excluding the contribution from SingleSource, direct sales revenue grew from approximately $150,000 in H1 2014 to $440,000 in H1 2015, an increase of approximately 190% year-on-year. Additionally, in July 2015, the Company won a direct sales contract with a division of one of the world's largest security companies, with anticipated initial revenues of approximately $250,000 annually. This contract is expected to start contributing revenue in Q3. The Company's direct sales pipeline is currently over $10 million in annualised revenue, representing a significant expansion.

[noli] 14/10/2015 05:21

What I find interesting is that the UK, tend to follow the US. if employees are suing companies in the US. for taking on employees who are not fit and proper for the job then that could easily cross the pond which would push the Clearstar brand or just maybe UK. companies screen employees. To a degree they already do in the UK via employment agencies but Clearstar are taking this to another level that helps the company and employee.

[noli] 13/10/2015 06:22

Major Shareholders - 84% held in total as of 16 - 7 - 2015

The total issued and outstanding number of shares is 36,302,900. The following hold 3% or more of the ordinary share capital of ClearStar:


Shareholder Number of Ordinary Shares Percentage of Issued Ordinary Share Capital
Robert Vale* 11,306,000 31.14%
Ken Dawson 5,006,000 13.79%
River & Mercantile Group 3,600,000 9.92%
Standard Life Investments Limited 2,529,500 6.97%
William White 2,368,000 6.52%
Hargreave Hale Limited 2,334,900 6.43%
Ennismore Fund Management 1,775,000 4.89%
Artemis Investment Management LLP 1,754,000 4.83%

*The interests of Robert Vale include 1,696,000 Ordinary Shares held by The Vale Family Trust

Last update: 16/07/15

[noli] 13/10/2015 06:21

Global

■ ClearStar will provide screening services to partners
and direct to employers outside the US
■ Global headquarters established in London, UK
– Data centres provided by Sungard: meets data
resi dency requirements for expanding beyond
US – competitive advantage with cross-border
data centres
■ Creating a new platform to satisfy interface and
architecture demands outside of US
■ Established relationships with data providers
■ International checks carry a higher revenue per
check compared with the US (due to immaturity of
the market)

[noli] 13/10/2015 06:20

ClearStar provides services to enable employers to
conduct medical screening, primarily drug and alcohol
tests, with an automatic paperless chain of custody
that increases the effi ciency and ease of the process
for both the employer and applicant/employee
– Drug testing: testing urine for drugs and/or
alcohol; accounted for c. 85% of MIS revenue
in 2014, particularly due to increase in demand
for steroid testing; in 2014, conducted a total of
250,000 drug tests in 12 countries
– Clinical testing: testing blood for disease and
blood type; emerging activity for ClearStar
– Occupational testing: applicant/employee visits
a physician for x-ray, psychological tests and
pulmonary function; emerging activity for ClearStar

ClearStar provides background check services
directly to employers and others such as landlords
and non-profi t and faith-based organisations
■ Client base: over 2,000 direct clients, primarily in
healthcare and homecare industries as well as
restaurant chains and faith-based organisations
– prior to SingleSource acquisition in December
2014, ClearStar’s direct client base comprised
approximately 400 SMEs

[noli] 12/10/2015 18:04

Since the IPO, we have invested in all areas of our business – in
particular, increasing the number of sales people from two to 10.

They have changed their stance on sales and have hired quality sales staff.

This was a truly transformational year for ClearStar. On 11 July
2014, we became a public company on the AIM – having raised $15
million in gross proceeds. As a result of the IPO, we were able to
accelerate and deliver on our growth strategy, resulting in topline
growth ahead of market expectations at $10.92 million. This
growth was through increased business from some of our largest
clients, new client wins and new product offerings.

[noli] 12/10/2015 16:54

ClearStar operates in an expansive and growing market driven by
the ever-increasing demands on employers for ensuring security
and regulatory compliance. The rise in the screening industry is
largely due to the growth, particularly in the US, of claims alleging
that an employer, organisation or association can be negligent for
hiring or retaining an individual who subsequently causes harm to
others – with a corresponding exposure to brand damage and large
liability awards. Equally, with an increasingly global and migratory
workforce, employers require a trusted third party to be able to
acquire the relevant data from the appropriate source to verify the
information submitted by the applicant and to facilitate in hiring the
most qualified candidate.

Background screening goes beyond verifying the information contained within
a CV and conducting a criminal background check, but may also
include drug testing, a physical and even psychological evaluations
or assessments.

As has been evidenced in 2014, our strategy has enabled us to
cater for an increasing proportion of this growing market, and,
as we continue to execute on our plans in 2015, we expect to gain
greater market share. Through sustained product development
to stay ahead of our competition as well as investment in sales &
marketing, we intend to drive our Channel Partners and Consumer
Reporting Agencies (“CRAs”), Medical Information Services (“MIS”)
and Direct Services divisions. At the same time, we plan to build
our Global division from our recently-established UK base – in
particular, by leveraging our new platform that conforms to non-US interface demands, as well as being the only company with cross border
data centres to satisfy data residency requirements.

[noli] 12/10/2015 12:32

This is one of those companies that has been forgotten about that only listed last year.

A very interesting company that looks well positioned for future growth, 84% of all shares are held and the only time this company has raised cash is to list on AIM. They purchased Single Service, a company they are now integrating. They are now after larger contracts and have already nailed one which starts giving revenue Q4, that was for 1.5 million. Growth is 40/50% per year and any decent contract win will transform the company.

From todays release:
In particular, the Direct Services division continued to expand its customer base, including winning a contract, as previously announced, with one of the world's largest cash handling services companies. The contract is already at a revenue run rate of approximately $250,000 on an annualised basis.

[proactivest] 22/9/2015 14:03

Video interview with CEO Vale



Robert Vale, chief executive of employee intelligence specialist ClearStar (LON:CLST), says the company is beginning to focus on larger companies and contracts after recent growth.
The AIM-listed firm operates in the background check industry, screening personnel, providing medical information services and technologies that fit into the human resources systems of its customers.
Today it said turnover rose by 43% to $7.5mln (US$5.2mln) in the half year to June, as the company screened more than 1.1mln potential employees for 23,000 customers.
That led Cenkos to upgrade ClearStar to a ‘Buy’ with the broker claiming that the shares are now unvalued and should be attracting the attention of investors.