|For BPS Technology, the future is “all about digital”.
BPS, which owns Bartercard, the world’s largest trade exchange, will concentrate on bedding down acquisitions after rapid growth and streamlining its digital offering, shareholders at the company’s annual meeting in Southport heard yesterday.
BPS CEO Trevor Dietz
BPS’ FY16 buy of Entertainment Publications, the “go-to” entertainment book, was a key acquisition which doubled the size of BPS, it said.
BPS raised $27.5 million in a “heavily oversubscribed” placement to fund the purchase of Entertainment Publications, a restaurant and activity guide that provides discounts from restaurants, hotels and attractions in Australia and New Zealand.
BPS plans to expand the guide’s reach and develop an app that will allow users to book and buy a restaurant meal from a mobile phone.
“In the year ahead, we plan to make the Entertainment Publications app transactional – users will be able to book restaurant tables from a mobile device,” BPS CEO Trevor Dietz said.
“(They will be able to) select a table, redeem a special offer when they get to the restaurant and then pay the bill, all from their phone.”
He said there also are plans to introduce features such as family package downloads and geographical offerings “not available in current entertainment apps.”
Mr Dietz said Entertainment Publications will become a fourth arm of the BPS business alongside Bartercard, the world’s largest trade exchange for SMEs, bucqi, its loyalty program, and TESS, its trade exchange software plaform.
BPS also plans to grow its Bartercard business by adding merchants and expanding its reach across the US.
Its foray into providing financial products also had paid off, with a deal with fintech GetCapital gaining traction.
“In just the first two weeks, we settled four applications worth over $250,000 with more than 20 applications in the pipeline,” Mr Dietz said.
He said BPS is fielding regular approaches “from local and global businesses to partner with them” and expand its businesses.
For now, the focus will be delivering on existing acquisitions and improving its digital offering.
“We have seen our investment in mobile technology and payments gaining traction. The future for BPS is in the digital, mobile online market,” he said.
BPS forecasts FY17 revenue to rise by 118 per cent to $109 million and EBTTDA to rise 49 per cent to $14.2 million. It reaffirmed first half FY17 guidance, with revenue tipped to jump to $55 million, up 120 per cent.
First-half pre-tax earnings are tipped to exceed $6.8 million, up 48 per cent.
BPS posted a net profit of $7.34 million for FY16, slightly down on the prior year due to spending on its sales force and Bartercard business.
Broker Moelis and Co has a 12-month price target of $1.35 on BPS shares. BPS shares closed steady at $1.
Source: Gold Coast Bulletin. By Jenny Rogers