Bailador Technology share price leaps 5% as FY22 profits soar

Bailador is a specialist investor in the information technology and media sectors.

| More on:
A businessman in a suit and holding a briefcase jumps into the sky celebrating the rising share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Bailador Technology share price is up 5%
  • Net profits were up 23% year on year
  • The specialist investment company ended the year with a strong cash balance

The Bailador Technology Investments Ltd (ASX: BTI) share price is leaping higher today.

Bailador Technology shares closed on Friday trading for $1.50 and are currently trading for $1.57, up 4.7%.

This comes after the company, a specialist investor in the information technology and media sectors, released its results for the financial year ending 30 June (FY22).

Bailador Technology share price lifts on…

  • Net profit after tax (NPAT) increased 23% from FY21 to $34.0 million
  • Pre-tax net tangible asset (NTA) of $1.86 per share, up 22% year on year
  • Declared a fully-franked dividend of 7.4 cents per share
  • $144 million cash balance as at 30 June

What else happened during the year?

The company credits its 22% boost in NTA per share during the year to a number of positive cash realisations.

These included $118 million for the full cash realisation of Instaclustr. That represented 14.2 times costs and an 80% internal rate of return (IRR). Bailador Technology also had a full cash realisation of $20 million for Standard Media Index (SMI), representing 2.7 times cost and a 15% IRR, along with a partial cash realisation of SiteMinder for $15 million, representing 24.8 times cost and a 40% IRR.

The specialist investment company's dividend reinvestment plan (DRP), established in February 2020, is active with a 2.5% discount. Investors looking to receive that dividend need to own shares before Thursday 1 September, when the stock goes ex-dividend.

What did management say?

Commenting on the financial year gone by, Bailador Technology managing partner David Kirk said:

We are delighted to present such a strong result to shareholders in a challenging year for information technology stocks. Our focus on realising investments in the buoyant market earlier in the year and waiting for more attractive valuations to make new investments has us very well positioned.

What's next?

Ending FY22 with $144 million in cash, Bailador Technology recently invested $5 million in InstantScripts, its first investment of the FY23, with additional new and follow-on investments "likely" over the course of the year.

"There remain a significant number of very high-quality expansion stage technology companies in Australia," Bailador managing partner Paul Wilson said.

"Capital market movements don't change that. The difference is that there is currently less capital chasing those companies, and valuations are more reasonable," Wilson said. "This environment gives us the opportunity to get access to those quality companies at reasonable valuations, and we are well positioned to do so."

Bailador Technology share price snapshot

Over the past 12 months the Bailador Technology share price is up 15%. That handily beats the full-year loss of 7% posted by the All Ordinaries Index (ASX: XAO).

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments Limited. The Motley Fool Australia has recommended Bailador Technology Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Web Travel share price rockets 13% on market leading full-year growth

Investors are sending Web Travel shares soaring today. Here’s why.

Read more »

Happy shopper at a clothes shop.
Earnings Results

Why did Myer shares just rocket 9%?

Investors are piling into Myer shares on Friday. But why?

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Up 78% since April, why is the Webjet share price taking off again today?

Webjet shares have soared 78% since 4 April and are lifting off again today. But why?

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Industrials Shares

Guess which ASX 200 stock is crashing 24% on results day

Investors were not impressed with this result. But why?

Read more »

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Technology Shares

ASX 300 tech stock charges 7% higher to record high on stellar results

This tech stock delivered another impressive result this morning.

Read more »

a group of people sit around a computer in an office environment.
Earnings Results

Guess which ASX 200 tech stock is rocketing 12% on record results

Another half, another record result from this high-quality company.

Read more »

A young man sitting at an outside table uses a card to pay for his online shopping.
Consumer Staples & Discretionary Shares

Why is the Kogan share price crashing 12%?

Profits are down at this ecommerce company during the second half.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »