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CORPORATE INFORMATION
MANAGEMENT TEAMInvestor Relations
BARTERCARD’S NEW FUTURE
The last year was one of monumental change for the Bartercard Group, the most significant being the delisting and privatisation of Bartercard Plc.
But it is the overall financial performance that has delivered a killer blow to the doom and gloom merchants. Profit after tax was almost A$8.6 million for the period against a loss A$8.1 million for 2006. A spectacular turnaround by any standards, - driven by the actions of our Executive Directors and with commitment and support from Management.
The delisting forced substantial corporate restructuring towards privatising. This included a share consolidation of 1,000 to one, and a “partial buyback” by me of micro shareholders and fractional share portions. The process of our delisting was effectively forced upon us and litigation against our former Nominated Advisor continues, but the Board responded aggressively with across the board restructuring to ensure the future success of Bartercard. Shareholders now total approximately 700 – down from over 4,000 as a public company. More importantly there are less owners of a company that has made substantial improvements to its profitability and balance sheet.
With all these changes going on the decision was made to change the financial year end to June 30, so all companies in the group reported for 15 months for consolidation into these accounts. Of course two major events that took place were the sale of our Company owned Sunbury branch to former CEO David Wright for £360k (A$850k) and the building sale in Australia for A$13.5 million. The latter retired all the long term debt in the group and placed over A$7 million cash in the bank. It also completely squashed rumours and innuendo in relation to the Groups solvency, and reinstalled member and market confidence. Since that sale settled, trading has renewed and inquiries for both International & UK Domestic Franchise Licenses, which had disappeared entirely, have increased. Deposits have already been taken for both India and South Africa with both expected to commence operations early in 2008. Furthermore overall trading finished up by 5% despite a large drop immediately after the delisting.
Of course the event of my lifetime, and our Company’s, took place only one month after the end of financial year, so it does not appear in these accounts, - the sale of Bartercard Australia.
After 16 years, our founding operation was sold as a license in a Management Buyout to a team including BCA’s Managing Director Trevor Dietz, Plc Main Board Director Murray D’Almeida and Co-founder of Bartercard Brian Hall. The deal was for A$25.5 million, backed by National Australia Bank, of which A$19.5million in cash has been received and the balance is vendor finance by the Bartercard Group over 5 years. I am sure you all join me in wishing them incredible success and growth from what is now our largest international licensee.
Many group subsidiaries were put to the knife with all former Universal companies being wound down and the newly acquired D-isc being ‘parked’ in order to focus on our core business activities. The result has been an increase in Bartercard UK with revenues increasing by 11%, and profits increasing by 34%. Similarly in Bartercard UAE revenues were up by an incredible 374%, and whilst still loss making, is expected to be profitable by the end of this year.
So today the company has a large cash bank balance, profitable subsidiaries and license and franchises sales and enquiries have started to flow again. On completion of a significant redevelopment of the Bartercard software program, operational costs for Bartercard International are expected to reduce, but will be replaced with the establishment of a BCI headquarters in mainland Europe headed by myself.
So the next great frontier, Europe beckons and Bartercard as a company is now in better shape than it has ever been. An internal market for shares will be created in the near future, and trading of those shares is now done via traditional share transfer.
I am proud to say that we have done exactly what we said we would last year, and more.
I look forward to returning profits to you in the form of dividends this year and I hope, for many years to come.
Wayne Sharpe
Executive Chairman
Click here to download Results for the 15 months ended 30 June 2007
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For more information on how Bartercard can benefit your business, please contact Bartercard today on
+ 61 7 5561 9111 or Contact Us
The last year was one of monumental change for the Bartercard Group, the most significant being the delisting and privatisation of Bartercard Plc.
But it is the overall financial performance that has delivered a killer blow to the doom and gloom merchants. Profit after tax was almost A$8.6 million for the period against a loss A$8.1 million for 2006. A spectacular turnaround by any standards, - driven by the actions of our Executive Directors and with commitment and support from Management.
The delisting forced substantial corporate restructuring towards privatising. This included a share consolidation of 1,000 to one, and a “partial buyback” by me of micro shareholders and fractional share portions. The process of our delisting was effectively forced upon us and litigation against our former Nominated Advisor continues, but the Board responded aggressively with across the board restructuring to ensure the future success of Bartercard. Shareholders now total approximately 700 – down from over 4,000 as a public company. More importantly there are less owners of a company that has made substantial improvements to its profitability and balance sheet.
With all these changes going on the decision was made to change the financial year end to June 30, so all companies in the group reported for 15 months for consolidation into these accounts. Of course two major events that took place were the sale of our Company owned Sunbury branch to former CEO David Wright for £360k (A$850k) and the building sale in Australia for A$13.5 million. The latter retired all the long term debt in the group and placed over A$7 million cash in the bank. It also completely squashed rumours and innuendo in relation to the Groups solvency, and reinstalled member and market confidence. Since that sale settled, trading has renewed and inquiries for both International & UK Domestic Franchise Licenses, which had disappeared entirely, have increased. Deposits have already been taken for both India and South Africa with both expected to commence operations early in 2008. Furthermore overall trading finished up by 5% despite a large drop immediately after the delisting.
Of course the event of my lifetime, and our Company’s, took place only one month after the end of financial year, so it does not appear in these accounts, - the sale of Bartercard Australia.
After 16 years, our founding operation was sold as a license in a Management Buyout to a team including BCA’s Managing Director Trevor Dietz, Plc Main Board Director Murray D’Almeida and Co-founder of Bartercard Brian Hall. The deal was for A$25.5 million, backed by National Australia Bank, of which A$19.5million in cash has been received and the balance is vendor finance by the Bartercard Group over 5 years. I am sure you all join me in wishing them incredible success and growth from what is now our largest international licensee.
Many group subsidiaries were put to the knife with all former Universal companies being wound down and the newly acquired D-isc being ‘parked’ in order to focus on our core business activities. The result has been an increase in Bartercard UK with revenues increasing by 11%, and profits increasing by 34%. Similarly in Bartercard UAE revenues were up by an incredible 374%, and whilst still loss making, is expected to be profitable by the end of this year.
So today the company has a large cash bank balance, profitable subsidiaries and license and franchises sales and enquiries have started to flow again. On completion of a significant redevelopment of the Bartercard software program, operational costs for Bartercard International are expected to reduce, but will be replaced with the establishment of a BCI headquarters in mainland Europe headed by myself.
So the next great frontier, Europe beckons and Bartercard as a company is now in better shape than it has ever been. An internal market for shares will be created in the near future, and trading of those shares is now done via traditional share transfer.
I am proud to say that we have done exactly what we said we would last year, and more.
I look forward to returning profits to you in the form of dividends this year and I hope, for many years to come.
Wayne Sharpe
Executive Chairman
Click here to download Results for the 15 months ended 30 June 2007 Top For more information on how Bartercard can benefit your business, please contact Bartercard today on
+ 61 7 5561 9111 or Contact Us
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