Star Group - NeoICP Full Year Results

Star Group - NeoICP Full Year Results

Financial technology company Stargroup Limited (ASX:STL) has announced that NeoICP, a private South Korean company in which it owns an 11.28% interest, has reported its financial year 2016 results showing strong improvement. NeoICP posted a net profit after tax of A$1.6 million for FY16, a 60.95% improvement on the previous 12 months. On the basis of the strong result, NeoICP has indicated it will pay Stargroup a dividend in the vicinity of US$60,000. 


HIGHLIGHTS

  • 60.95% increase in NPAT result for NeoICP in FY16
  • 29.17% increase in EBITDA results for NeoICP in FY16
  • 18.81% increase in Revenue for NeoICP in FY16
  • 11.28% increase in Net Assets for NeoICP in FY16
  • US$60,000 dividend payment to Stargroup from NeoICP

Financial Technology and ATM machine company Stargroup Limited (ASX : STL) is pleased to announce that NeoICP Korea Inc. (NeoICP), a private South Korean Company that Stargroup owns 11.28% of the issued capital of, have released their full year results in South Korea.

The NeoICP full year revenues were up 18.81% to AUD $25,405,356 (FY15 : $21,381,436).

The NeoICP full year results show a net profit after tax result of AUD$1,605,898 (FY15 : $997,750) which is a 60.95% improvement.

NeoICP also posted an EBITDA result of AUD$2,319,015 (FY15 : $1,795,362) which was also a 29.17% improvement on the prior year result.

The book value of NeoICP’s net assets were reported at AUD$17,292,198 at 30 June 2016 which was also a further 11.28% increase on the FY15 result of $15,538,187.

As previously advised to the market on 2 February 2016, there is a dividend policy in place as between NeoICP and Stargroup and accordingly NeoICP will be declaring a dividend in relation to the year ended 30 June 2016 and have advised the Stargroup Board that this will be approximately USD$60,000.

Mr Todd Zani, Stargroup’s CEO and Executive Chairman said “The Board of NeoICP have had an excellent result for FY16. These results have significantly outperformed the FY15 results and our expectations for FY16. We continue to believe that our investment is undervalued in our own books and whilst we did make an upward revaluation in the half year result from $938,368 to $1,524,597. NeoICP recently acquired and built an impressive new headquarters and manufacturing plant in South Korea and the improved net assets of the business do not take into account the market value of these premises. Given this result and dividend payment, we will give due consideration to again revaluing this investment.

The dividend payment is larger than expected and NeoICP have had an excellent year where they have consolidated the distribution of their products throughout the Asia Pacific region and we understand that there are intentions to list NeoICP on the Korean exchange.

In particular, NeoICP have made significant progress with their cash redemption terminals in China, Sri Lanka, Malaysia, Cambodia, Turkey and also South Africa and we are working closely with credit unions and banks in Australia to roll out some of these technologies in Australia.

The reciprocal shareholdings between Stargroup and NeoICP sets us apart in the ATM market place. NeoICP recently participated in the rights issue and currently own a 5.23% interest in STL. Our joint ownership of each other means that we have an edge over our competitors and we work very closely with NeoICP to customize solutions for our clients in Australia.

The Korean Board of NeoICP will be in Western Australia next week as part of our ongoing commitment to further customize our technologies to suit our customer needs in this region. and a combined commitment to become the Number 1 ATM and financial technology company in Australia”, said Mr Zani.

To view the full announcement click here. 

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