ClearStar (AIM:CLSU) said it is “greatly encouraged” by strong revenue recovery since the peak of the coronavirus pandemic as the technology firm said it continues to generate new business.
In a trading update for the six months ended 30 June 2020, the AIM-listed group said it had experienced a ‘significant uptick’ from the end of May which continued throughout June and into July despite the pandemic impacting the business in the initial breakout period.
As a result, revenue for the first half was $8.9m (H1 2019: $11.6m) while revenues in June were 74% higher than in April and have since returned to the same levels seen in February.
The company said growth in revenue from May was primarily down to financial institutions preparing for a return to normal employment levels, business staffing companies as well as an increase in demand for Medical Information Services.
ClearStar’s increased revenue alongside mitigation measures implemented at the start of the outbreak and ongoing cost control saw the group return to positive EBITDA for May and June.
Shares in ClearStar were trading 15.63% higher at 37p on Friday morning.
Consequently, the company has continued to reduce its net debt position to $1.4m as at 30 June 2020 and has sufficient funds of $2.2m ‘to remain viable for the foreseeable future.’
The group said it had made ‘significant progress’ with onboarding previously-won customers and continues to generate new business without having lost any customers over the period.
The group noted its win of a NASDAQ-listed company that provides technology testing and industrial automation in the first half of 2020. The onboarding of this customer is nearing completion and the group expects to start generating revenue by the end of the month.
In addition, an agreement inked at the end of the first half of 2020 to integrate with a provider of end-to-end technology solutions for home healthcare agencies and community organisations represents another ‘route-to-market in a key industry for ClearStar.’
"We are greatly encouraged by the strong recovery in revenue since the peak of the crisis,” said Robert Vale, CEO of ClearStar.
He added, “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.”
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