20th August 2016

Gold Coast's BPS technology looks to expansion plans to fuel growth  

GOLD Coast-based global trade exchange business BPS Technology is looking to new acquisitions
to fuel growth after posting a net profit of $7.34 million.

The result was slightly down on last year’s result due to spending on its sales force and Bartercard business.

Pre-tax earnings, at $9.5 million, were also down $500,000 from the previous period.

However, revenue rose 4 per cent to record levels, breaking the $50 million mark for the first time.

BPS will pay a full-year dividend of 4¢.

The company said its purchase of Entertainment Publications, a restaurant and activity guide that provides discounts from restaurants, hotels and attractions, should have a “significant impact” on future revenue.

It has a bullish outlook for the next financial year, forecasting growth of 118 per cent to $109 million, leading to a 49 per cent increase in pre-tax earnings to $14.2 million.

Chief executive Trevor Dietz said BPS was excited about the opportunities for growth across the company’s three arms — Bartercard, loyalty and payments platform bucqi, and Entertainment Publications.

“The full-year result reflects growth in our Bartercard business along with promising development in the rollout of bucqi,” he said.

“We are excited about the new growth we can drive across our business lines as we pursue the integration of Entertainment Publications, bucqi and Bartercard.”

The company said the introduction of a new sales model for Bartercard had added 25 per cent more Australian members.

BPS in the year inked an agreement with online retail firm Alibaba partner, SmartTrans Holdings, to gain preferential entry into China for its Australian members.

It also expanded its US operations after opening three franchises in California, Tennessee and Georgia.

US sales added $1.25 million to revenue while the company expects to add new franchises this year.

Australian revenue led the way, with $35 million in sales, followed by New Zealand ($11.8 million) and the UK ($6.1 million).

Other new revenue streams included a commercial partnership with digital marketing and mobile payment specialist Gruden Group as well as opening a new business and travel insurance sales channel through Honan Insurance.

BPS said 340 merchants had installed bucqi with 3400 downloads for the bucqi app.

The company raised $27.5 million to fund the purchase of Entertainment Publications, which it said would give it access to a network of 36,000 SMEs, 18,000 not-for-profit clients, and 550,000 paying customers.

It shares closed steady at 96¢.

Source: The Gold Coast Bulletin

Author:  Alister Thomson