BPS Technology to change name and acquire new company

SOUTHPORT-based BPS Technology, the operator of the Bartercard trade exchange system, is planning to change its name, acquire a marketing company, and reposition the company for growth.

BPS Technology CEO Iain Dunstan and George Lawson from Alipay. The companies have teamed up to launch Alipay on the Gold Coast. Picture: Glenn Hampson

BARTERCARD operator BPS Technology has unveiled a major transformation — changing the name of the embattled company to IncentiaPay and acquiring digital agency Gruden Group.

The move follows the resignations of BPS Technology co-founder and CFO Tony Weise and Bartercard co-founder Brian Hall after questions were raised over irregularities in financial reporting for the past three years.

BPS has been under pressure since last year following a failed boardroom coup by a minority shareholder group.

Founding CEO Trevor Dietz resigned and was replaced by Iain Dunstan.

Mr Dunstan has moved quickly to implement changes at the company, which has seen its share price plummet from 84c in November to just 31c yesterday.

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Yesterday, BPS released a half-year loss of $33.17 million, largely due to $30 million in writedowns on the value of its assets.

It also announced a non-renounceable two-for-three entitlement offer to raise $22.1 million at an issue price of 28c.

BPS put its shares into a trading halt, pending completion of the offer, and said it expected to resume trading on Friday.

In addition, it said entities associated with Mr Dietz, Mr Hall and Mr Wiese will sell 9.3 million shares at 28c, and scheduled a meeting for April 5 to pass resolutions including one to rename the company IncentiaPay.

The company said it has entered into an agreement to acquire Sydney-based Gruden Group — a listed digital marketing and transactional payment company.

BPS said the benefits of the acquisition, if it goes ahead, would be to provide access to customers including Red Rooster and Starbucks, further penetrate the fast food and hospitality sectors, and tap into cost synergies with other parts of its business, such as the tieup with Alipay.

BPS provided full-year guidance of revenue of $110 million and underlying EBITDA — which strips out one-off items — of between $4.5 million and $6.5 million.

The meeting on April 5 is also to approve new directors, including Chris Berkefeld.