BPS TECHNOLOGY POSTS STRONG FY17 PROFIT, SHARES SURGE

BPS TECHNOLOGY POSTS STRONG FY17 PROFIT, SHARES SURGE

BPS Technology (ASX: BPS), which operates the Bartercard payments network, has reported a FY17 net profit of $10.3 million, up from $7.4 million from the previous year as it continues with its integration of newly acquired assets.

The Gold Coast based FinTech company more than doubled its revenue to $110.5 million and the results include a full 12 months contribution from Entertainment Publications which publishes the popular restaurant guide, The Entertainment Book.

BPS bought Entertainment Publications in 2016 as it positions itself to become a leading provider of platforms that enable businesses to attract customers across multiple sales channels.

BPS CEO Trevor Dietz says the Entertainment business continues to deliver strong financial returns and was a management priority during FY17, although the company still focused on building its core business by increasing its merchant base and enhancing transactional platforms to drive more customers to more merchants.

During FY17, BPS signed an agreement with online Chinese retail behemoth Alibaba, expanded its Bartercard USA franchises from 10 to 20 and launched Bartercard France in June 2017 to become the second licensee in Europe.

"We will continue to invest in technology in a very controlled manner and we expect funds invested as a percentage of revenue over the next two years to average around three to four percent," Dietz says.

"With a total asset base of 36,000 SMEs, 20,000 NFPs, 1.5 million fee-earning householders and a reach of 3.5 million individuals, the opportunity for BPS to increase and/or drive new revenue streams from predictive buying and selling patterns is truly exciting."

The Board has declared a final fully franked dividend of 2.25 cents per share, taking total dividends declared and paid for FY17 to 4.5 cents per share, fully franked.

BPS shares were trading up almost 12 per cent to $0.80 at around 3pm (AEST) on Tuesday.

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