CLST.L Share News (CLST)

(Sharecast News) - Technology-based services provider ClearStar cautioned that an alteration to its product mix had negatively impacted underlying earnings in the current trading year.
ClearStar said the alteration in product mix was a result of a higher-than-anticipated contribution from its medical information services unit, a lower margin business, and was expected to have a negative impact on adjusted EBITDA.

In addition, the AIM-listed company said certain investments in cloud data management, security compliance and sales team infrastructure had also weighed on profits and it now expected to report an adjusted EBITDA for 2019 of approximately $300,000.

Revenues generated by financial institutional screening was also lower than previously anticipated in the fourth quarter due to the impact on the financial services industry of political uncertainty in both the US and abroad.

Despite the warning, ClearStar highlighted that revenues had grown by roughly 15.0% year-to-date to reach $21.5m.

Looking ahead, ClearStar said its order book was at its highest ever and noted it had "a healthy pipeline" that it expects to convert to further orders in 2020

"While remaining cautious over the potential impact of global political-economic uncertainty, the board remains confident in ClearStar's future prospects," said the firm.

As of 0945 GMT, ClearStar shares had tumbled 13.82% to 53p.