|BPS Technology has announced a strong after-tax profit, the first sale of its technology platform to India, and the establishment of Bartercard in Johannesburg at its first annual meeting since the company listed on the ASX in September.
Chairman Murray d’Almeida addressed shareholders with the results of the company to 30 June 2014, including the group’s profit after tax for the first 4 months to October 2014.
d’Almeida also revealed a Heads of Agreement with young rich-lister and former Gold Coast Young Entrepreneur Randall Deer to roll out its new loyalty app through his travel rewards company RewardsCorp Holdings, one of the largest travel reward companies in Australia.
The deal will see the BPS loyalty app, bucqi, taken up by the travel company which has more than 200,000 consumers linked to its platform.
BPS’ revenue for the 4 months to 30 June 2014 came in at $14m, EBITDA at $1.8m, and profit after tax at $1.3m.
“Coupled with the best forecast months of November, December and January still to come, these results give BPS confidence to reaffirm the full year guidance as per the Prospectus,” he said.
“This includes an interim dividend of 2.25 cents per share payable in April 2015, and a final dividend of a further 5 cents per share payable in October 2015, giving a total dividend of 7.25 cents per share, based on the Prospectus pay-out ratio of 65%.”
d’Almeida said BPS had noted a share price decline from the opening price of 100 cents per share to 78 cents per share at its lowest point.
“Volumes of share trades in this past month have been very low and these small trades have caused the share price to fall below issue price.
“We have no other evidence why a small number of investors or their brokers have decided to sell at less than what they paid in such a short period,” he said.
“We do not believe the current share price is reflective of their true value.”
BPS shares rallied 4 cents on the above announcement, or 5.13 per cent to close at 82 cents on the day, giving BPS a market capitalisation of $48 million.
d’Almeida said Gold Coast-based BPS, which owns the world’s largest trade exchange Bartercard, is in early discussions with several trade exchanges around the world, including North America and Europe, regarding its software platform TESS.
He said he was also pleased to announce that in the past few days a Heads of Agreement has been signed for the establishment of Bartercard in the greater Johannesburg region, the economic capital of South Africa, with further provinces expected to come on stream throughout 2015 and 2016. This will be the eighth region where Bartercard has a presence, joining Australia, the UK, USA, New Zealand, Thailand, UAE and Cyprus.
“This initial transaction alone is valued at $500,000,” d’Almeida said.
“The first sale of the TESS Technology to India remains on track as per our prospectus and we are on track to achieve 100,000 Bartercard members by the end of 2016,” he said.
BPS Chief Executive Trevor Dietz added the bucqi loyalty app was set to become a one-stop-shop for consumers to redeem dollar for dollar rewards and represents a significant step in the expansion of Bartercard’s business model into the broader consumer market place.
“BPS Technology already owns and manages one of the world’s largest and most successful alternative currency systems, Bartercard, and now combined with the bucqi technology, can unite cash payments and loyalty programs in a way not previously available.”
*Pictured: Tony Weise (left), chief financial officer, Trevor Dietz, chief executive officer, Murray d’Almeida, non-executive chairman, Tony Lally, non-executive director, Brian Hall, managing director and Andrew Pipolo, non-executive director during the BPS Technology annual meeting in Southport.