Stargroup joint venture pays off
Published 02-FEB-2016 09:19 A.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Stargroup’s (ASX:STL) South Korean NeoICP investment has yielded strong results as illustrated in its half yearly reporting to December.
NeoICP has reported net assets of AU$28,579,999 and an EBITDA of $1,933,234.
The EBITDA has blitzed the full year EBITDA result from 2015 of $1,666,404.
The results have led Stargroup to re-value its 19.25% interest in the company, given book value at June 30 2015 was just $938,368.
2015 was a big year for Stargroup as it consolidated its business model and struck deals to increase its customer base.
In November last year, Stargroup had signed a technology development agreement with Anthem Software and Claim Co Group in deals designed to potentially add 50,000 customers into the book and simplify payments for a key market sector.
A month earlier the company agreed to acquire a 109 Automatic Teller Machine (ATM) network from Cash Plus Australia – a network that has been in operation for eight years.
STL is the only ASX listed company deploying ATM machines in Australia and the only listed ATM company with direct ownership in the manufacture of its ATM machines, namely NeoICP.
There is an agreed three year dividend policy in place as between NeoICP and STL whereby in each of the 2014-15, 2015-16 and 2016-17 financial years, subject to NeoICP earning an NPAT of at least $500,000, NeoICP will declare and pay a dividend of 30% of NPAT.
Stargroup CEO Todd Zani said of the results, “Stargroup is pleased with the continued improvement in then NeoICP results. The half year results have outperformed the prior full year results and clearly our investment is currently undervalued in our books and we will be making an upward revaluation statement.”
Mr Zani believes NeoICP is making significant inroads into the distribution of its products throughout the Asia Pacific region. This includes the recent distribution of its casino settlement machines, cash redemption terminals and back office technologies in Macau.
“They have also made good progress with their cash redemption terminals in China, Sri Lanka, Malaysia, Cambodia, Turkey and South Africa,” Mr Zani said.
“The reciprocal shareholdings between Stargroup and NeoICP sets us apart in the ATM marketplace. Our joint ownership of each other means that we have an edge over our competitors and we consider than an ongoing dividend stream from our investment in NeoICP is the icing on the cake.”
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
