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BARTERCARD owner BPS Technology is perplexed by a rash of selling of its shares that has depressed the company’s share price since listing in September.
Chairman Murray d’Almeida (pictured), addressing shareholders at the company’s first AGM as a listed company, also has reaffirmed profit guidance after a solid four months of trading this financial year.
BPS Technology’s share price has slumped from a $1 issue price to a low of 77c, but was today trading around 82c.
“We have no evidence why a small number of investors or their brokers have decided to sell at less than what they paid in such a short period,” d’Almeida says.
“Volumes of share trades in this past month have been very low and these small trades have caused the share price to fall below issue price.
“We do not believe the current share price is reflective of their true value.”
D’Almeida says the company’s reaffirmed dividend of 7.25 per cent represents a yield of more than 9 per cent at the current share price.
The chairman says BPS Technology’s revenue for the first four months of FY15 has reached $14 million, leading to EBITDA (earnings before interest, tax, depreciation and amortisation) of $1.8 million and profit after tax of $1.3 million.
“This, coupled with our best forecast months of November, December and June to come, gives us confidence to reaffirm the full-year guidance as per the prospectus, including an interim dividend of 2.25c per share payable on April 2015.”
BPS Technology is planning to pay a final dividend of 5c per share in October next year.
D’Almeida says the company has had discussions with a number of trade exchanges around the world, including North America and Europe.
He says if successful these will boost the geographic coverage and member base of the group’s business.
BPS technology is also making inroads with its TESS Technology, marketing of which is still to be launched.
“The first sale of the TESS Technology to India remains on track as per our prospectus,” says d’Almeida.
“I am also pleased to announce that, in just these past few days, a heads of agreement has been signed for the establishment of Bartercard in the greater Johannesburg region, the economic capital of South Africa, with further provinces expected to come on stream throughout 2015 and 2016.
“This initial transaction alone is valued at $500,000.”
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