ASX-listed financial payments company Stargroup is set to cash in on strong half-year profits announced by their part owned South Korean ATM manufacturer NeolCP.
Perth-based Stargroup, who recently reported its own solid half-year results, has an 11.28 per cent stake in the private NeoICP Korea Inc.
For the six months to December, NeoICP posted revenues of AUD$13.2 million, EBITDA of AUD$1.1 million and net profit after tax of AUD$853,705. It finished the half with net assets of AUD$16.7 million.
Dual-listed Stargroup has two key products, an extensive ATM network with more than 300 machines on the streets across Australia and a slew of EFTPOS and PayWave technologies. Through its interest in NeolCP, Stargroup is the only listed ATM company with a direct interest in the build of its ATMs.
Stargroup chief executive Todd Zani said: "We received our first dividend payment from NeoICP on the back of their outstanding 2016 full year result and we believe that it is reasonable to expect a future dividend payment from this investment based on the performance to date.
"The reciprocal shareholdings between Stargroup and NeoICP sets us apart in the ATM market place. Our joint ownership of each other means that we have an edge over our competitors and we consider that an ongoing dividend stream from our investment in NeoICP is the icing on the cake."
The positive news out of the Korean ATM manufacturer comes after Stargroup recently posted a very solid half-year result of its own, featuring best ever revenues of more than $4 million.
For the six months to December, Stargroup reported a 228 per cent lift in revenue, compared to the first half of 2016. The surge was largely built around record revenues at its ATM division the company said at the time.
Stargroup is also upbeat about the outlook for the back half of 2017, especially the completion of the Indue ATM business acquisition, which company management expects to conclude in March.
By Matt Birney
