tipline

Reader Interactions

Comments

  1. Hi Dennis

    The warning is spot on. The prospectus is misleading and deceptive. The barter industry is falling on a monthly basis. The Australian arm being its main cash flow has been going down since 2005 and has crashed since 2013 when the directors of Bartercard decided to take over by force half of the franchisees for non compliance. Bartercard has taken over about 22 franchises for non compliance in 2 years. The turn over ( trade volume) was about $50M per month about 8 years ago. Now turnover is only about $22M per month and falling. Sales of new membership was 500 per month and now only 100 per month and falling. The attrition rate is greater than the new membership.

    They have failed to disclose the losses in the Trade exchange company ( over $70M )and the Bartercard holding company Bartercard International Ltd ( formerly PLC a public listed company that never made any profit) has losses of over $20M. With the track record of the trade companies there is no chance of a dividend.

    With Bartercard PLC ( formerly UK Aim listed) and BBX ( a former ASX listed ) never making any profit at the height of the barter industry how is this ” new ” company going to make any profit with half of the turnover and quarter of cash generating return.

    Bartercard have moved staff costs to related companies to show a paper profit. The USA roll out has failed no profit. The software has no chance of any profit ( internally called “webturtle” due to its speed.). There are cheap software companies as low as $1K to set up. Why use a competitor?

    Great concern for the non disclosed associated debt and losses in Barter Futures Pty Ltd , Bartercard Trade Exchange Ltd and the fixed and floating security for the vendor loan debt held by former CEO / major shareholder Wayne Sharpe’s private company IGIA over all assets of Bartercard.

    This IPO is like a bad second hand car dealer. A quick coat of paint to conceal the truth. The company has been badly managed since the management buy out, falling greatly under a mount of debt. Now the directors want to move the debt to investors.

    regards
    Franchisee

    • Thanks Franchisee
      I concur with everything you have said and it is in line with all other feedback from the Tipline
      The only thing that you differ on from my research and understanding is the sum total of off-balance debt which you mention is $70m and $20m. Based on multiple sources of other very credible data I believe that your figures are seriously understated and that the true figure is hundreds of millions not even a hundred million.
      Their shoddy paperwork and patched together Prospectus combined with an ultra-short time to listing makes me think that a deal has already been done to list – who, when, what this deal was done beats me but in due course no doubt it will come out – it always does in the end. More fool investors if they dip out after my expose eh? I appreciate your bothering to comment. Hopefully the world is a better place as a result of your words. Thank you kindly.

Trackbacks

  1. […] PUBLIC WARNING: BARTERCARD IPO This post is a public warning to investors considering investing into BPS Technology Ltd (the Bartercard IPO) currently attempting to list on the ASX (Australian Securities Exchange). My advice: DO NOT INVEST. Having received plentiful feedback following my previous posts on the Bartercard IPO, and the recent rejection of my complaint to the ASX on a technicality, I now issue a public warning to potential investors. I believe that the Bartercard IPO is a deliberately misleading act designed to asset strip from Bartercard Members (past and present); minor shareholders and the taxman to the benefit of [primarily] three Directors. […]

Leave a Reply

Your email address will not be published. Required fields are marked *