Bouncing back quicker than anticipated
Ahead of ClearStar’s AGM, Chairman Barney Quinn today reported : “While it remains too early to estimate the impact of COVID-19 on full year 2020, we are increasingly optimistic that it will not be as bad as we once feared.’’Although America lost 20.7m jobs in April, equivalent to 15.5% of the workforce, the good news is that green shoots are already starting to appear. Not least with May’s non-farm payrolls figure coming in at +2.5m gain (13.3% unemployment rate) vs a forecast decline of 8m. The Fed see a rebound in economic activity (+5.0% in 2021). Such an outcome should provide a supportive backdrop for US background screening & medical testing expert ClearStar, as a net 10m+ jobs are created over the next 2.5 years (average 330k/month).
In terms of employee CV19 testing we understand the US Government has temporarily delayed the start of all new operations of this type, in order to ensure there is consistency nationwide. When the industry gets authorisation, ClearStar has already been awarded 5 deals, which should provide a further lift to turnover.
Lastly with regards to valuation, the shares (at 38p) trade on a modest 2019 EV/revs of 0.8x vs peers (pre coronavirus) at 2.5x – 3.5x
Adecco Group provides human resource services, including temporary staffing, permanent placement, outsourcing, consulting and outplacement. Co. has more than 5,500 branches in over 60 countries and territories. Co.'s Office and Industrial businesses offer a range of general staffing services, including temporary staffing, permanent placement, assessment, training and integrated human resources applications. In addition, Co. operates professional business lines, which include Adecco Finance & Legal, Adecco Engineering & Technical, Adecco Information Technology, Adecco Medical & Science, Adecco Sales, Marketing & Events and Adecco Human Capital Solutions.
Oracle provides products and services that address enterprise information technology (IT) environments. The company's products and services include applications and infrastructure offerings. The company's cloud and license business engages in the sale, marketing and delivery of its applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings; and its cloud license and on-premise license offerings. The company's hardware business provides Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments.
Randstad is a global staffing and recruitment company, providing various solutions in the human resources (HR) services space. Co.'s services include regular temporary staffing and permanent placement of candidates. In addition, Co. provides several other HR solutions, such as Recruitment Process Outsourcing (RPO), Managed Services Programs (MSP), payroll services, and outplacement. Co. provides four distinct service concepts: Staffing, Inhouse Services, Professionals and HR Solutions.
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