US background check technology and service provider ClearStar has seen year-on-year profit climb 10%, according to unaudited results for the six months ended 30 June 2016.

The results, published this morning, reveal gross profit (GP) increased by 10% to $5m (£3.85m) from $4.5m in H1 2015, while revenues increased by 6% to $8m from $7.5m in H1 2015.

Commenting on the results, chief executive Robert Vale said: “Our channel partner and consumer reporting agency clients continue to account for the majority of sales – whether this is for a background check or a drug screen delivered in the US or abroad. However, we are greatly encouraged by the increasing revenues generated by direct services clients, which is our key growth engine.

“We are receiving significant interest in our recently-launched ClearID and ClearContact solutions, which are designed to cater for the increasingly casual and transitory nature of the labour market, and we expect Direct Services Division revenues to grow in the second half over the first half. 

“With the growing demand for our services across all of our divisions, the board remains confident of achieving sustained growth and of delivering value to shareholders.”

ClearStar H1 2016 results at a glance:

• GP increased by 10% to $5m (H1 2015: $4.5m)
• Revenues increased by 6% to $8m (H1 2015: $7.5m)
• Gross margin increased by 190 basis points to 62.4% (H1 2015: 60.5%)
• Operating expenses reduced by $400k to $6m (H1 2015: $6.4m)
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) improved by $1m to a $300k loss (H1 2015: $1.3m)
• As of 30 June 2016, the company had net cash of $3.1m (31 December 2015: $3.9m; 30 June 2015: $4.2m)