Update on their NTA

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02752161-2A1493546

BTI Announces FY23 Results and Declares Fully-Franked Dividend.

https://bailador.com.au/assets/downloads/230816_FY23_results_media_release.pdf

https://bailador.com.au/assets/downloads/230816_BTI_Results_Presentation_FY23.pdf

Paul Wilson picking up 165,000 shares ($198,752) for himself and another 40,000 ($48,400) for his joint super fund.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02676505-2A1455054?access_token=83ff96335c2d45a094df02a206a39ff4

The investment in Siteminder is a great example of the upside that can be created as a VC. From its initial investment of 5m BTI have realised 30m in cash and have 52m in shares. At worst they would have written their 5m investment to 0 but at best well at this stage it’s realising a 16x return with all signs (Siteminder growing revenue at 30%) suggesting this investment return for BTI will continue to grow.

A cashed up BTI can afford to spend 4-5m on 20 start ups. From that they only requiring a 25% success rate at levels equal to a present Siteminder ~80m to 4-5x their investment. Even if one cuts the return to 40m across 5 out of 20 companies still would double the investment.

note: I hold

FY Announcement and Annual Report can be found in the links below.

https://newswire.iguana2.com/af5f4d73c1a54a33/announcements/bti.asx/2A1390679/BTI_Announcement_2A1390679.pdf?download=1

https://newswire.iguana2.com/af5f4d73c1a54a33/announcements/bti.asx/2A1390651/BTI_Announcement_2A1390651.pdf?download=1

key summary points:

Net Tangible Asset (“NTA”) per share (pre-tax) up 22% over prior year to $1.86

• Net profit after tax increased 23% over prior year to $34.0m

• Cash realisations of $152.9m vs cost base of $16.4m for multiple of invested cost of 9.3x and an IRR of 43.4%

• Fully-franked dividends of 7.4 cents per share declared represents a 4.9% yield on BTI shares1

• Dividend reinvestment plan (“DRP”) active with a 2.5% discount

• BTI is well positioned with a $144m cash balance to take advantage of additional investment opportunities

Disc: I hold

noteworthy: cash balance is equal to “$1 per share” and presently equal to >60% of the market cap!

BTI is in a unique position of being cashed up at a time that potential venture capital propositions are fighting for $$$. It’s an opportunity to be able to get a larger % of a start up venture than might have occurred for a similar investment just 3-6months ago. It’s these periods where big opportunities can be unearthed at great value. disc HELD

BTI reported solid first half results. Trading well below its NTA the market may be allowing for a re-pricing of its holdings but I think the discount on offer is inviting enough for an entry or top up especially considering the quality and grow potential of some of its holdings.

https://bailador.com.au/assets/downloads/2202_HY22_results_media_release.pdf

note: I hold in my personal account and in my strawman account.

Wow!!! What a first day! From an IPO price of 5.06 to close at 7.01 day 1. For BTI holders Its a nice way to cover (and some+++) that 15m BTI took out in cash. Let’s remember the 5.06 price led to a valuation of BTI holding at $99m! They told $15m in cash held onto $84m and it finished today at 116m!!! The news Friday out of the US from booking, airbnb and the airlines was just the pre float news this stock needed! It should also (if holds) put a floor under the BTI price around ~1.80!

@Fereguru the debt structuring of Siteminder will change significantly following the listing as you will see much of it involves derivative financial instruments utilising convertible preference shares that are rewarding early investors. That’s why you will notice ~85% (~520m) of the raised funds are directed towards payments to selling shareholders which from a quick glance should reduce much of the debt to nil.

However, this is not financial advice (VIP) and I would suggest you do a much deeper dive and speak to your accountant to get approved financial advice so you fully understand the numbers.

In general companies typically IPO to pay down debt, reward early investors and to access capital for growth. This does not guarantee that the shares will pop on listing especially, if the market thinks the IPO is fully priced. Most of the time the pre-ipo beneficiaries are the ones who benefit most as they get multiple opportunities to get a capital appreciation especially if the listing actually takes place.

PS. On another note I see major investors involve BTI, Black-rock and Aussie Super.

@Feteguru At 5.06 the company is being valued at 1.3B or ~12-13x Revenue. When compared to similar SaaS companies it’s possible there is an opportunity especially, with travel only likely to get closer and closer to normal as we move forward.

Based on the 1.3B valuation BTI has reported that this will see their 7.6% valued at ~99m. They have already said they will sell down and take ~15m in cash (good idea as it rebalances them a little and releases $ for other opportunities). This leaves them with a ~6.5% holding.

So with this in mind it can be seen it’s the current duel in the crown for BTI and puts it around ~40% of NTA of BTI (please DYOR confirm this figure independently as this is a rough estimate).

So the question i suppose one might want to ask is are you happy with your current exposure to Site-Minder through BTI relative to your own personal portfolio?

The Site-Minder IPO seems to have possibility contributed to the recent surge in the price of BTI. I think the price is starting to get quite ahead of its NTA however, considering their conservative valuations and the likelihood of a positive re-rating in the valuation of the Site-minder holding for BTI this might close back up a little. In say that it might be worth anyone wanting to get in or topping up to wait until the next portfolio re-evaluation to see where the NTA is at before considering an entry.

Note: I own BTI.

Some nice numbers out from BTI today. It seems 2021-22 could be much of the same with two of their major holdings lokking to IPO and BTI reporting they will continue to hold post IPO.  Considering the NTA some considerable upside possible over the next 12m. 

Key numbers...

NTA up 23% ($215m) (pre tax 1.53 v todays closing price 1.37)

Portfolio value up 35%

Net Profit 27.6m (realised investments and increases in key in valuation of companies held)

Cash (Only) at 30th June $43.5m

Special Dividend 1.4%

Opportunity to benefit from IPO of two major holdings in 2021-22.

For further info check out the whole release and company presentation at ASX.

BTI is a great way to get access to technology start ups that are unlisted (private) and in the early stages of dvelopment and expansion. This is a great way to access tech companies with global market potential in the pre-listing stage. Its a market that retail investors rarely get access to but, the opportunity presents exciting opportunities to share in a part of a companies early stage growth to listing. I own BTI in my personal portfolio and have put in an order on my Strawman account.