Boxhill Technologies PLC Trading Update (9522F)
November 01 2018 - 3:00AM
UK Regulatory
TIDMBOX
RNS Number : 9522F
Boxhill Technologies PLC
01 November 2018
1 November 2018
BOXHILL TECHNOLOGIES PLC
("Boxhill", the "Group" or the "Company")
Trading Update
Boxhill provides an update on recent developments.
The Company is pleased to announce the win by its subsidiary,
Prize Provision Services Limited (which operates the Weather
Lottery), to operate a lottery for one of the UK's largest
membership organisations, with over two million potential
participants. The membership organisation is investing a six-figure
sum in internal marketing to drive its membership to contribute to
its charitable arm which supports its members in a number of
activities. With the investment in marketing it is expected to see
a substantial uplift in lottery lines played and we look forward to
reporting on the progress over the coming months.
Reorganisation of the payments business following the sale of
the Emex Group has involved a refocus on more mainstream clients
and markets within Market Access Limited ("Market Access"). This
finds the payments business in a more competitive arena, where
margins are lower, and this will be reflected in the first half
results. The reduction in revenues reported on 12 July has
continued at the same level while the reorganisation continues,
with further declines in payment processing being offset by a rise
in foreign exchange business. However, we believe that in the long
term the reorganisation will enable us to produce a growth pattern
that is more stable than we have seen in the past.
In implementing this reorganisation, Market Access has made
progress across all areas of operation. It has launched its Market
Access treasury services platform with a small number of Beta
clients testing the cross-border payment and foreign exchange
functionality. The full suite of services (including FX, Treasury,
Compliance and Risk Monitoring) is expected be ready in November,
with an initial tranche of approximately 30 corporate clients
already in the approval cycle.
Refocused credit card processing services are now in place and
the first few merchants are going through the approval process and
we expect this to contribute to revenue from November 2018. We have
partnership agreements in place with a number of key acquiring
banks and other suppliers in Europe, the Far East and North
America.
Market Access is also working on several card issuing
opportunities - with two medium sized programmes in development -
both of approximately 5,000 users each.
Also, in July, The Board announced the separation of the
provision of payment services to Non-Conforming Customers from the
rest of the Group through the sale of Emex (UK) Group Limited,
Emexconsult Limited and Emex Technologies Limited to MDC Nominees
Limited.
The consideration for the purchase of Emex was GBP2,000,000,
satisfied through the issue by MDC Nominees Limited of a Loan Note
to the same value, with a 10-year term. Repayment is to be by way
of the establishment of a sinking fund into which the net revenues
of Emex resulting from the customers left in place at the time of
the transaction or any new Non-Conforming Customers (as defined in
the announcement of 12 July 2018) referred by Market Access, the
referral of which is expected to commence in November as part of
the full set of Market Access services. The delay in establishing
the Market Access payment processing platform, which, as mentioned
above, is due to go live in November, has prevented the processing
of Non-Conforming Customers on behalf of MDC Nominees Limited as
well its own customers. As a consequence, no payments have yet been
made into the sinking fund by MDC Nominees Limited.
Work continues to satisfy the auditors on the one outstanding
item and shareholders will of course be notified as soon as the
audit is completed. Trading in the Company's ordinary shares of 0.1
pence each remain suspended on AIM pending publication of the
Annual Report and Accounts and its half-yearly financial results
for the 6-months to 31 July 2018.
For further information, contact:
Boxhill Technologies PLC
Lord Razzall, Executive Chairman
Website www.boxhillplc.com 020 7493 9644
Allenby Capital Limited (Nomad & Broker)
John Depasquale / Nick Harriss 020 3328 5656
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END
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