Boxhill Technologies PLC Trading Statement (1509J)
March 28 2018 - 2:00AM
UK Regulatory
TIDMBOX
RNS Number : 1509J
Boxhill Technologies PLC
28 March 2018
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
28 March 2018
BOXHILL TECHNOLOGIES PLC
("Boxhill", the "Group" or the "Company")
Trading Statement
Boxhill Technologies are pleased to give an update on recent
developments.
Payment division
Since the Chairman's statement in October 2017, combined
revenues in Emexpay and Emexgo for the period October 2017 to
January 2018 has averaged GBP120K per month. The Company expects
improvement on this as the High Value Transfer Service starts to
gain traction. While there have been some successful transactions
to date, these have been at the relatively lower category, being
just over the GBP10m threshold, with revenue falling into
February/March. The large nine figure transaction referred to
previously in the announcement of 28 July 2017 is still live but
also presents challenges for some of our banking partners with whom
we continue to work closely.
The card processing business continues to steadily develop and
the Company is focusing on non-gaming clients and rolling out
services offering Union Pay services to clients.
The Company is also pleased to announce that it has established
Market Access Limited ("Market Access") as a wholly owned
subsidiary to operate a foreign exchange and treasury services
business, which commenced trading on 19 March 2018. The Company is
operated by Mark Harris who brings a great deal of experience in
FX. In consideration for his services MHC St James Ltd ("MHC"), a
company controlled by Mr Harris will receive shares in Boxhill
equal to 13% of the current issued ordinary share capital
("Shares") if Market Access achieves earnings of at least GBP1
million (on the basis of earnings before interest, tax,
depreciation and amortisation ("EBITDA")) in the 12-month period to
31 January 2019. The percentage of Shares issued will be scaled
down pro rata in the event that Market Access achieves
profitability of less than GBP1million EBITDA for this period.
MHC will be entitled to a further tranche of Shares up to a
maximum of 4% per annum provided that Market Access earnings
achieve at least GBP2.25 million EBITDA in each of the subsequent
four years of operation prior to the fifth anniversary of this
agreement. In the event that earnings do not achieve GBP2.25
million in any one year it will be entitled to a percentage of
shares for that year up to 4% calculated on a pro rata basis and
also by reference to a calculation of the groups other earnings.
The number of shares which MHC can be allotted is limited to 4% in
any year and 25% over the whole five- year period (the percentages
of Shares are all calculated on the current issued share capital of
the Company).
The Board believes that without any cash outlay the foreign
exchange business will complement our existing businesses servicing
both our internal needs and those of our corporate and personal
customers.
Mark has significant sales experience, principally in FX
companies such Travelex and Baydonhill (which was sold to Earthport
PLC) and more recently has held a successful career consulting to
several fintech and payments companies. It is expected that Mark
will take up a senior executive role driving sales across the
Company in due course.
The Company's suite of financial products positions us as one of
very few fintech companies that can offer a true alternative to
traditional banking. Customers can open accounts with IBANs in
their names, send and receive money worldwide either on a peer to
peer basis, via bank wire or even directly to any card issued by a
recognised issuer, manage their foreign exchange and treasury needs
all in one place.
The company has increased its banking network further within
Europe and the Middle East, including with liquidity providers to
support the Market Access business.
As reported previously the company is owed substantial sums by
Phillite D UK Limited ("Philite"). This indebtedness has been
reduced by payments in excess of GBP600,000 made by Phillite to the
Company since the end of the financial year.
Lottery Division
Prize Provision Services celebrated its 1,000(th) weekly managed
lottery draw on 19 February 2018 and is working hard to increase
the number of societies it supports. The Lottery Division is
operating in line with expectations; revenue was slightly higher
than expected in the previous month, although this is offset with
increased staff numbers supporting the Weather Lottery and the new
website, sportsclublottery.com. The Sports Club Lottery website has
been launched to help sports clubs of all sizes raise funds to
increase participation in sport across Great Britain. Lottery
profits represent 50% of lottery proceeds which compares favourably
to competing lottery providers.
Corporate
The Company confirms that it continues in its search for the
best candidate to perform the chief executive officer role for the
Group.
For further information, contact:
Boxhill Technologies PLC 020 7493 9644
Lord Razzall, Executive Chairman
Website www.boxhillplc.com
Allenby Capital Limited (Nomad & Broker)
John Depasquale/Nick Harriss 020 3328 5656
This information is provided by RNS
The company news service from the London Stock Exchange
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