Stargroup further enhances Automatic Teller Machine position
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11:00 01 Jun 2017
Projected EBITA for FY18 increases to $5.7 million from $4.7 million.
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Stargroup has expanded its ATM network to 512 owned machines
Stargroup (
ASX:STL) has significantly expanded its Australian Automatic Teller Machine (ATM) network through the acquisition of Fast Cash ATMs Australia Pty Ltd.
Fast Cash owns a 134 ATM network and associated business assets.
Consideration is $4.2 million, which has already been paid as part of a $7.5 million finance facility.
Todd Zani, CEO and executive chairman for Stargroup, commented that this was an excellent acquisition of another quality ATM network that was negotiated during the course of the Indue acquisition and settlement.
"The delayed Indue settlement will result in a delay in the planned dividend payment this year but this is an excellent addition to the stable of assets owned by the Group.
"We are now focusing on organic growth and further developing the excellent foundations that we have layed in the last few years across all of our divisions.
"We have clearly outlined in our strategy that we would target smaller unlisted ATM deployers for value accretive mergers and acquisitions and this is a
high quality network which we have tucked in to our operations and it will further strengthen the free cash flows from the business in FY18."
Analysis
The acquisition brings with it a boost in Stargroup's groups financials, which are now:
- Projected annualised revenue for FY18 increases to $20.1 million from $17.9 million; and
- Projected EBITA for FY18 increases to $5.7 million from $4.7 million.
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