BNN Technology (BNN), formerly known as DJI, has been busy reinventing itself. The Aim-traded, China-based company is now concentrating on payments, content and value-added services - building a technology portal for its domestic market.
Significant investment has been made in creating a database, hence the larger loss compared with its first full year of trading in 2015. However, the seeds of those investments have already started to show through. Gross transaction volume increased by £210m to £290m following the launch of the B2B mobile payments business in the second half of 2016. This included a significant commercial deal with software developer Xinhuatong and Xinhua News Agency for the exclusive rights for payment processing and other services on the Xinhua News mobile app.
After the year-end, it also signed an agreement to develop a motorist services platform, allowing consumers in China to top up pre-paid petrol cards. The service is expected to be extended to include motor insurance, car park payments, car maintenance and traffic fines.
There are also plans to develop a platform to provide financial and other services for students in China. On results day, the company also completed a £25m placing to fund this investment.
| BNN TECHNOLOGY (BNN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 68p | MARKET VALUE: | £141m | |
| TOUCH: | 67.25-68p | 12-MONTH HIGH: | 174p | LOW: 60p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 19p | NET CASH: | £8.4m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 5.52 | -10.7 | -8.1 | nil |
| 2016 | 2.06 | -18.2 | -10.1 | nil |
| % change | -63 | - | - | - |
Ex-div:na Payment:na | ||||
