Search

Stargroup hints at maiden dividend year

After posting a stellar 242% year on year revenue increase in FY 16, ASX listed financial payments player Stargroup, has given its strongest hint yet that FY17 might be its maiden dividend year.

In a recent statement to the ASX, Stargroup Executive Chairman and CEO Todd Zani said “….1 July has marked the first month in what we know will be our first year of underlying profitability in the 2017 financial year and one in which we have earmarked to make our maiden dividend payment.”

The company’s growth seems unstoppable after it produced yet another record revenue result during the June quarter, its 10th record quarter in a row.

Stargroup’s growth has come largely from its super aggressive merger and acquisition program which has seen them swallow up 3 other significant Automatic Teller Machine businesses in the last 12 months.

The company’s profitability and growth is now solidly underwritten by its ATM business but Zani says the real blue sky opportunity rests with its EFTPOS division which is about to see a 433% increase in terminals after the company signed up a major financial services customer last month.

Group revenue for the business touched nearly $1.2m for the June quarter having come off a low of about $100k for the March 2014 quarter.

Stargroup is predicting even greater growth next quarter with group revenues predicted to arrive at the $1.5m mark during the September quarter.

Mr Zani said “Projected revenues will significantly improve in the next quarter as our sales funnel and scheduled installation of ATMs and EFTPOS devices over the next 60 days on already contracted sales are at record levels. As a result, we are conservatively estimating that our next quarter will see at least a 30% increase in revenues…”

We are still easily paying back our capital from each ATM within 15 months from purchase and given our recent further increase in scale we are looking to review some of our key supply contracts in the business to further reduce our costs of goods sold and maximize our profits” said Mr Zani.

Zani is not afraid to put his money where his mouth is either as he has regularly produced his own cash to back the business during its remarkable growth phase over the last 12 months.

Last week he stumped up over $300k to take part in the company’s latest capital raising which brings his total personal investment in Stargroup to well over $2m.

If current predictions are accurate however he might actually start to get some of that money back with the prospect of a Stargroup maiden dividend looming large for the 2017 financial year. 

Add your comment

Stargroup (STL)

Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 29/06/18

1 year TSR5 year TSR
4thAdvance NanoTek1986%102%
302ndGoldfields Money27%5%
496thWestStar Industrial-4%-54%
505thStargroup-6%-11%
767thCarnegie Clean Energy-61%-6%
722 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

09/08/17
$12k Bought
27/06/17
$0 Other
27/06/17
$35k Bought
Total value as at the date of the transaction
Source: Morningstar

Revenue

87th↑Stargroup$563k
96th↑Carnegie Clean Energy$5.3m
97th↓Advance NanoTek$5.1m
100th↑WestStar Industrial$4.6m
101st↓Goldfields Money$4.2m
239 listed industrial companies ranked by revenue.
Source: Morningstar

Remuneration from Stargroup

1366thJay Kim$29k
Ranked by total remuneration from all listed WA companies

BNiQ Disclaimer