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News and Announcements

BPS Technology Exceeds FY15 Earnings Forecast and Presentation

  • Published September 11, 2015 2:18PM UTC
  • Publisher Wholesale Investor
  • Categories Company Updates

BPS Technology Limited (ASX: BPS) is pleased to announce its full year results for the year ended 30 June 2015 (FY15) which saw the Company deliver a Net Profit After Tax (NPAT) of $7.9m, exceeding its Prospectus forecast.

FY15 was a milestone year for BPS Technology:

  • Revenue of $48.1m
  • EBITDA of $10.1m, exceeding Prospectus forecast of $9.9m
  • NPAT of $7.9m, exceeding Prospectus forecast of $6.5m by 22%
  • EPS of 13.5 cents, exceeding Prospectus forecast of 11.11 cents by 22%
  • Strong balance sheet with net cash of $2.7m and undrawn debt facilities of $4m
  • New international licences for Bartercard in China, India and South Africa poised to provide future revenue streams and trading opportunities
  • Declared a final unfranked dividend of 3.25 cps taking the full year dividend to 5.5 cps

Commenting on the results BPS Technology’s Chief Executive Officer, Mr Trevor Dietz, said “This is a very pleasing result for BPS in its first year as a listed company. The result reflects continued growth of our Bartercard business, which now operates in eight countries. In addition, management has had a strong focus on cost control which has helped it exceed the profit forecast.”

The Directors have declared a final unfranked dividend of 3.25 cents per share, taking the full year dividend to 5.5 cents per share.

Bartercard business continues to expand
During the period Bartercard continued its geographic expansion, adding several new countries to the Bartercard network, including China, South Africa and India. International rights sales were concluded for each country, increasing Bartercard’s global reach to countries. Bartercard maintains a strong domestic presence and there are plans to expand this further.

FY15 was a year of substantial investment within the Bartercard business. The company implemented a strategy of buying back strategically significant franchise areas particularly those in large urban areas and major city centres. These businesses will be run as company owned stores and will not be made available for resale in the short term. The total value of all company owned stores amount to $7.2m. The Board sees this strategy as fundamental to achieving its growth targets within the Bartercard businesses.

The Company also expanded the Bartercard business internationally, with the sale of the international rights in some major market places where there is good potential to generate high transaction volumes. The recent agreement with One World Express (HK) Limited, the new licensee for China, is an exciting development and will facilitate the Group’s expansion into the Chinese market. The current year result has only a small contribution from China and India. The Board is confident that with the successful roll out of the Bartercard model in those markets, significant revenue contributions can be expected in future years.

“Looking ahead, our goal will remain the continued expansion of the Bartercard network. We also see opportunities for strategic acquisitions and joint ventures that could add substantially to the growth of the business model”, Mr Dietz said.

Benefitting from the existing mature cash generating markets in Australia and New Zealand and the growth potential which we expect in the United States, China and India, the three largest trading countries in the world, the Bartercard business is ideally placed for growth.

Bucqi platform launch delayed, but rollout has commenced
The Board of BPS made a strategic decision to delay the launch of BPS’ mobile loyalty rewards and payment platform, bucqi. This decision allowed for some major enhancements to be made to the platform to increase its appeal and functionality in the burgeoning B2C payments
and loyalty space. The bucqi rollout commenced in June 2015 in a selection of areas and market reaction is being monitored closely.

Mr Dietz said “We have substantially changed our strategy in respect of bucqi and we have decided to use the substantial marketing power of the Bartercard merchants to assist with the roll out of bucqi. We have started rolling out the technology amongst our Bartercard network in Australia and the response so far is encouraging. We have received expressions of interest from more than 2,500 merchants. We have also signed strategic partnership agreements with a number of leading organisations including Rewards Corp and RSPCA Queensland, who will promote the bucqi app to their large network of members/supporters.”

The New Zealand rollout is planned for the second quarter of this financial year.

The Company is confident bucqi has the capacity to become a revolutionary tool in the payment processing and loyalty management space. We remain very excited about the bucqi offering and its application in the market and expect this to become a significant revenue contributor to the Group in coming years.

To read the full document or Investor Presentation, please click on the link below to download. 

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