Bailador Technology share price leaps 5% as FY22 profits soar

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

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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.

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