By Jenny Rogers
Saturday 29th November 2014
|Global trade exchange business BPS Technology has stitched up a deal with young rich-lister and former Gold Coast Young Entrepreneur of the Year Randall Deer to roll out its loyalty app through his travel rewards company.
Southport-based BPS revealed the deal at its first annual meeting after listing on the stock exchange in September.
Mr Deer, who debuted on the BRW Young Rich List 2014 with a wealth of $27 million, owns RewardsCorp Holdings, one of Australia’s largest reward companies, part of his Ignite Travel Group.
The deal will see the BPS loyalty app, bucqi, adopted by a company with more than 200,000 consumers linked to its platform.
BPS, which owns the world’s largest global trade exchange, Bartercard, has also struck a $500,000 deal to establish Bartercard in Johannesburg, South Africa, and expects to grow its South African business in 2015 and 2016.
BPS Chairman Murray d’Almeida said the company had achieved a lot in just 11 weeks since its September float, with earnings and revenue in line with expectations.
In the four months to October, it achieved revenue of $14 million, and a net profit of $1.3 million.
The company confirmed it will pay a dividend of 7.25 cents a share in October 2015, a yield of 9.4 per cent at the current share price.
However it was the plunging share price which saw the company cop a shareholder grilling. From $1 at issue, BPS shares dropped to a low 78 cents.
Mr d’Almeida said the company was well aware that share value was the primary concern for investors.
“The market doesn’t care less about excuses like ‘the dog ate my breakfast’ it just wants to know what’s happening to my shares,” he said.
“I can give you an undertaking from the board that this matter will be front and centre in the minds of the board.”
Mr d’Almeida said BPS was unsure why “a small number of investors or their brokers have decided to sell at less than they paid in such a short period.”
He said BPS did not believe the share price was reflective of the shares’ true value.
BPS shares yesterday rallied 4 cents, or 5.13 per cent, to close at 82 cents, giving the company a market capitalisation of $48 million.
BPS yesterday approved the issue of shares to enable it to undertake mergers and acquisitions on a share-swap basis.
Chief Executive Trevor Dietz said the bucqi loyalty app was set to become a one-stop-shop for redeeming points from other loyalty programs run by airlines and credit card providers via smartphones as opposed to loyalty cards.
The company was on track to achieve 100,000 Bartercard holders by the end of FYI6.
It has completed transactions for the purchase and integration of BPS Technology into Australia, the UK, US and New Zealand, assigned contracts and licences into Thailand, the UAE and Cyprus, and launched its bucqi loyalty app and TESS cloud-based software program to a global market.
The first sale of its TESS software, to India, was on track and the company was in discussions with a number of other countries looking to adopt the technology.
Source: Gold Coast Bulletin
*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.