BPS TECHNOLOGY TO FEED THE GORILLA

Written on the 18 November 2015

BPS TECHNOLOGY TO FEED THE GORILLA

BPS Technology (ASX:BPS), the company that owns Bartercard, sees itself as the 'gorilla in the room' in a trade exchange industry worth $20 billion globally.

And the Gold Coast-based company is planning to feed that gorilla over the next year as its takes a bigger bite of a market it says is ripe with opportunities.

CEO Trevor Dietz (pictured left) effectively told shareholders at the company's first annual general meeting as an operating company this morning to 'watch this space'. He says BPS has a number of acquisitions in train over the next year to further its reach into consumer engagement.

The strategy will run in tandem with growth of the company's Tess technology, which is now rated as the preferred platform for the world's 2500 trade exchanges by the International Reciprocal Trade Association (IRTA).

"Our goal is to become the Microsoft of the barter industry," says Dietz.

"We have an agreement with IRTA over 15 years that they will recommend our technology as the preferred technology for the industry."

Today's AGM comes on the heels of a 70 per cent surge in the BPS Technology share price since August after the company bettered most of its prospectus forecasts in FY15.

Chairman Murray d'Almeida (pictured right) says the shares had been trading well below their $1 issue price due to a US fund last year selling its entire Australian portfolio, including more than 1.5 million BPS shares, because of the lower Australian dollar.

"We were not contacted prior to this action and hence had no opportunity to place the shares with other funds," d'Almeida told shareholders.

"It is pleasing to note that BPS has retained the strong support of several well-known Institutions, some of which have increased their stake in our company and by all indications are looking at us as a medium to long-term investment."

BPS posted a net profit of $7.9 million in FY15, up from a forecast $6.5 million, although revenue of $48.1 million was slightly below prospectus forecasts due to the delay in the launch of the company's new customer rewards technology, known as Bucqi.

Dietz says while Bartercard and Tess were the foundations of the business over FY15, he sees major growth potential through Bucqi which offers merchants a unified rewards system for clients.

Bucqi also incorporates a unique smartphone payment technology that utilises rewards dollars known as 'bucqs'.

Dietz says market research shows that this new loyalty scheme provides consumers with clarity regarding the value of their rewards, with one bucq worth $1, and that this is gaining traction with consumers.

"Our technology is quite unique and strong, so our ability to be able to grow our business beyond that which we currently do is also strong," says Dietz.

Over the next 12 months, BPS Technology is targeting acquisitions and joint ventures with groups that have developed payment gateways, loyalty programs and rewards and mobile payments as it rolls out Bucqi domestically before looking at international markets.

"We continue to focus on being an international organisation," says Dietz, adding that all acquisitions will be earnings accretive.

"There are good opportunities for us to grow our relationship with SME market base. We're about bringing consumers to merchants.

"We style ourselves as a company with a disruptive payment system for merchants globally.

"The emerging business of Bucqi and Tess can lead towards greater revenue and market penetration."

The Tess technology platform was launched last month in North America, leading to 13 expressions of interest for the product. Over the past year, BPS launched in South Africa and signed agreements in India and China.

Bartercard accounts for $600 million of the $20 billion transaction pool produced from the 2500 trade exchanges across the world.

"We are the gorilla in the room with $600 million," says Dietz.

"There is none bigger out there doing what we do, but importantly from our viewpoint, if we can address part of that $19.4 billion, the opportunity for us to be able to expand our business is strong."

 


Latest News

AUSTRALIA READY TO DISRUPT GLOBAL CARBON FIBRE MANUFACTURING

AUSTRALIA for the first time has the capacity to produce carbon fibre from scratch and at scale, following the launch...

HONG KONG FUND INVESTS $212.8 MILLION IN G8 EDUCATION

G8 EDUCATION (ASX: GEM) has secured $212.8 million from Hong Kong-based CFCG Investment Partners to pay down debt and...

MERGER DELIVERS THE FINANCIAL GOODS FOR TERRY WHITE

TERRY White Group has posted a solid half-year net profit of $1.3 million amid a period of major transformation fo...

BLUE SKY APPOINTS TWO NEW INDEPENDENT DIRECTORS

BLUE Sky Alternative Investments (ASX: BLA) has appointed two new independent, non-executive directors to its board: ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter