BPS Financial will market tailor-made finance products to its small and medium enterprise merchants via a new partnership agreement. Today it has executed an agreement with Get Capital Pty Ltd (“GetCapital”) that will make available a range of finance products to its 36,000 merchants throughout its business networks, including Bartercard Group, Entertainment Publications and Bucqi.

Initially the facilities will target growth finance opportunities as well as working capital finance requirements of members.

Tony Wiese, Chief Financial Officer of BPS said, “We are excited to add a new business stream to our existing trading arrangements with our merchants, and also our partnership with GetCapital. We are responding to feedback from our existing merchants requiring better access to working and growth capital.

“With the new addition of Entertainment Publications’ 12,000 merchants, BPS now has 36,000 businesses with a variety of financing requirements. It is our role to not only facilitate extra sales for our members, but to partner in other areas of their businesses including providing essential cash flow and financing support as we already do through our trade dollar program. Through the partnership with GetCapital, BPS will now offer real cash finance as well as trade dollars to support our merchants’ growth.”

GetCapital will make available up to $100 million over the initial year of the agreement to support the partnership. BPS Financial does not carry the loan, risk or recourse on its balance sheet, but will however invest in Financial Service Officers to understand the needs of its merchants and to ensure that BPS efficiently markets the relevant finance product to its merchants. BPS will receive an upfront and ongoing commission on all transactions, which will commence from 1 November 2016.

Jamie Osborn, the CEO of GetCapital, said the partnership offered exciting potential.

“GetCapital’s strategic priority is to support the growth of Australian SMBs by delivering best in market finance solutions, through innovative financial products and exceptional speed and service to our customers and partners. Our distribution strategy leverages strategic relationships we form with players such as Alibaba, OFX, Xero and Aquire from Qantas.

“Our partners are leaders in their respective markets and have deep relationships with a large number of Australian SMBs. BPS fits this description perfectly. They are the clear industry leader in their category and have an intimate relationship with their customers developed over 25 years of offering a range of highly valuable services to SMBs. We are very proud to be their first finance partner.”

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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.”

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  Trevor Dietz

  BPS Technology and the Gruden Group will collaborate to deliver new and exciting mobile payments and loyalty platforms for a range of Australia’s leading consumer brands.

• Consumers to earn rewards which will be redeemable with an extensive range of BPS’ 24,000 merchant clients.
• BPS and Gruden will earn fees on transactions executed via the platforms that arise from the agreement.

Leading financial technology platform provider BPS Technology Limited (the Company) is pleased to announce it has executed a Marketing Services Agreement with the Gruden Group Ltd (Gruden).

Gruden is one of Australia’s leading digital marketing and transactional payment specialist companies in the quick service restaurant (QSR), leisure, hospitality and retail sectors. Its award-winning mobileDEN platform empowers brands to seamlessly engage and interact with consumers.

The agreement will allow the potential for Gruden to incorporate BPS’ payments and rewards platform (bucqi) and small to medium business (SMB) channel enablement platforms into Gruden’s well-established digital marketing platforms. Gruden supports a strong list of high-profile customers spanning Australia’s leading QSR, leisure, hospitality, retail and entertainment companies. These include brands such as Starbucks, Red Rooster, Donut King, Jamie’s Italian, Oporto, Gelatissimo, Globus, Betta Home Living and Accor Hotels. Gruden also provides technology platforms to Federal and State (NSW) governments.
“Every business is looking for a simple, cost-effective technology solution that drives consumers to their stores, allows them to transact and provides for a transparent and portable loyalty points program,” said Trevor Dietz, CEO of BPS Technology Limited.

“BPS offers that solution through its bucqi and Bartercard platforms, and when we couple these with the advanced digital marketing and transactional capabilities that Gruden can deliver, we get an extremely powerful marketing, payments and loyalty platform solution.”

“Gruden are at the cutting edge of online transactional and digital marketing, and what we see being offered by BPS is a natural progression for businesses to adopt in the decade ahead,” said Tim Parker, CEO of Gruden.

“BPS offered a solution we did not have, and their access to consumers and SMEs is unique. We wanted to grab that before someone else did, because we can see great potential there for our clients. What is good for them will be good for us.”

The agreement provides for BPS and Gruden to earn fees on transactions between merchants and customers via the payment and rewards platforms established by the two companies. For BPS this represents a new, incremental return on its investment in the bucqi platform, and paves the way for consumers to redeem the rewards they earn through the platform with BPS’ 24,000-strong base of merchant clients.

The Company also notes that Gruden’s established presence in China offers potential for BPS to extend its reach into the Asia Pacific region. This should help to build on the promising trade link BPS recently established into China via Alibaba.com

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