ClearStar’s successful integration of background screening peer SingleSource has helped the US background check technology and service provider deliver a 42% increase in revenues for the year to 31 December 2015.

The group’s results, published this morning, revealed revenues increased 42% to $15.5m from $10.9m in 2014.

Speaking to Recruiter this morning, group chief financial officer David Pattillo said the firm’s direct service division, including December 2014 acquisition SingleSource, had contributed $3.8m in 2015, up from $500k in 2014.

The firm has also managed to cut operating expenses by $1.8m following SingleSource’s acquisition brought about by achieving efficiencies through synergies. Pattillo explained this involved a 10% reduction of headcount across the business with the firm now employing 80 people. 

The efficiencies combined with increased revenue from this part of the business also helped the group return to the black in terms of earnings before interest, taxes, depreciation and amortisation (EBITDA) in the second half of the year, he added.

In the first half of the year, the company signed a major contract with a UK customer, a global risk management consultancy and signed its first multi-lingual client, a French company. Pattillo declined to name any of the clients. /news/2015/09/financials-clearstars-profit-increase-due-in-part-to-adapted-sales-force-strategy/

The results also revealed:

• Gross profit increased by 50% to $9.5m (FY 2014: $6.3m)
• Gross margin increased to 61.2% (FY 2014: 58.0%)
• EBITDA improved to $956k loss (FY 2014: $1.3m loss), due to positive EBITDA in H2 2015 of $334k (H2 2014: $1.4m loss)
• As of 31 December 2015, the company had net cash of $3.9m (30 June 2015: $4.2m)