Trevor Dietz
Highlights:
- Robust business development drives record revenue of more than $50 million
- Investment in bolstered salesforce drives EBITDA of $9.5 million
- Transformational acquisition of Entertainment to boost FY17 revenue by 118% and drive projected EBITDA growth of 49% in current year
- Final dividend of 2.0 cents per share taking full-year dividends to 4.0 cents per share
- Leading channel enablement and payments platform provider BPS Technology Limited (“BPS”, “BPS Technology” or “the Company”) is pleased to release its full year results for the year ending 30 June 2016 (FY16).
In its second year of operation since listing on the ASX in September 2014, the Board set some ambitious goals for BPS in 2016. The Company is pleased to report:
- Revenue increased to record levels, rising 4% to $50.2 million — breaking the $50 million threshold for the first time
- Gross profit grew by 3% to $38.6 million, driven by development of new and existing Bartercard territories
The introduction of a new sales model accelerating activity across the Bartercard network, with Australian new member growth of 25% year-on-year - Earnings before interest, tax, depreciation and amortisation (EBITDA) of $9.5 million, $0.5 million lower than the previous period as a result of the Company’s investment in bolstering its salesforce and optimising the Bartercard sales model
- Net profit after tax of $7.34 million, $0.5 million lower than the 2015 result (tracking the EBITDA outcome)
Dividends paid to shareholders of 4.0 cents per share (comprising a 2.0 cent unfranked interim dividend and a 2.0 cent fully franked final dividend) - $5 million in convertible notes raised in December 2015, set to be repaid in December 2016 following the Company’s recent successful capital raising
- Investors would be aware that in August 2016, BPS successfully completed a $27.5 million capital raising to institutional investors, fully underwritten by Moelis & Company. BPS is proud to welcome 20 of Australia’s leading institutions to the register.
The success of this significantly oversubscribed institutional placement has enabled the Company to execute the acquisition of Entertainment Publications (“Entertainment”), a leading business-to-consumer (B2C) deals platform. The combination of BPS and Entertainment brings together two proven, profitable and scalable businesses with significant growth potential.
This is a transformative acquisition which should make a significant impact on BPS’ financial profile. Excluding revenue and cost synergies, the Company projects FY17 revenue growth of 118% to $109 million, driving projected EBITDA growth of 49% to $14.2 million.
Welcoming Entertainment into the BPS group extends the Company’s reach to more than
36,000 SMEs and 18,000 not-for-profits (NFPs), taking BPS into 550,000 homes across Australia and New Zealand.
The Company looks forward to the settlement of the transaction in September 2016. Investors can find more detail on the acquisition in the presentation released to the ASX.
“This is a pleasing result which represents reward for the sustained efforts of a cohesive team,” said BPS Technology Chief Executive Officer Trevor Dietz.
“The full-year result reflects continued growth in our Bartercard business along with promising development in the rollout of bucqi, our loyalty and payments platform. We are excited about the new growth we can drive across our business lines as we pursue the integration of Entertainment, bucqi and Bartercard, and look forward to continuing to deliver value to BPS shareholders.”