TIDMBOX

RNS Number : 7078H

Boxhill Technologies PLC

02 December 2015

2 December 2015

Boxhill Technologies plc

("Boxhill" or the "Company")

Trading Update & Proposed Acquisition

The Board of Boxhill, the payment software and lottery group is pleased to provide a further trading update.

Payments Division

The payments division has seen healthy growth in Q1/16 managing a total of 106,000 transactions compared to 42,000 in Q4/15, helped by new customers in UK, USA and Europe bought in via channel sales partners. Value of transactions handled has increased from US$63,578 and EUR2,591,998 in the Period May-Jul 2015 (Q4) to US$2,296,335 and EUR5,716,809 in the period August to October (Q1). The Company still has further integrations to complete and is in line with its target of one new major customer per week.

The Company has agreed heads of terms to acquire Emex (UK) Group Limited, and the associated company, FreePayMaster Limited (collectively, "Emex"). Emex has developed software for peer to peer payments, money transfer and trade services, crowd funding and accounts for individuals and businesses, and is already a significant supplier to the Company's Payments Division (see www.emexpay.com and www.freepaymaster.com for further details). The transaction, expected to conclude in December 2015, is for a proposed consideration of 400,000,000 new ordinary shares of 0.1 pence and is expected to make a significant positive contribution in the current financial year based on servicing Payment Division's current contracted business. Longer term, the efficiencies from vertical integration and cross-selling will provide further opportunities for growth.

Emex have offices in Ayr and Malta and Boxhill is establishing legal entities in Malta which is particularly supportive environment for FinTech and Gaming businesses. A further announcement will be made on the Emex acquisition once the Company's due diligence has completed.

Casino Cash Machines

The acquisition of Emex and the subsequent structural changes unfortunately mean that the roll out of Casino Cash is once again delayed; however, the FreePayMaster software directly supports the back end and escrow management feature of the casino cash mode, and this is expected to expedite the roll out of the machines over the longer term.

Lottery Division

Prize Provision Services Limited ("PPSL"), the Company's lottery operating subsidiary, has recently introduced Paperless Direct Debit ("PDD") to all clients. PDD gives an improved quality of service to PPSL clients and offers efficiency benefits to PPSL through the elimination of much of the paperwork and postage costs associated with traditional Direct Debit and the administration around Standing Order payments, which will be phased out over time. PPSL Client feedback has been positive and clients will be further buoyed with the upgraded client administration area, with work due to be completed before the end of the year.

Soccerdome

Following the announcement of 30 October 2015 (definitions as per that announcement), the JV is making good progress in preliminary work associated with the financing and redevelopment of the pitches at HHSV. Works are expected to begin close to the end of the year and a late spring 2016 opening is being targeted by the JV.

Expected publication of 2015 Annual Report

The Board will publish the annual report and accounts for the year to 31 July 2015 in the first week of January 2016; this is a change from the previous indicated date due to the recent corporate developments.

Phil Jackson, Chief Executive, commented:

"The proposed acquisition of Emex, with whom we already work closely, brings both immediate savings (as they are a supplier, Boxhill fees are their revenues) and broadens our offer as an emerging player in the payment software, or FinTech market. With the further addition of FreePayMaster we are able to add innovative global payment methods to our portfolio. Having a base in Malta means we will be better placed to work with our customers and peers in a country that is geared towards both gaming and Fin Tech."

For further information contact:

 
 Boxhill Technologies 
  PLC                               020 7493 9644 
---------------------------------  ----------------------- 
 Philip Jackson, CEO 
---------------------------------  ----------------------- 
 Website www.boxhillplc.com 
---------------------------------  ----------------------- 
 
 Allenby Capital Limited 
  (Nomad & Broker)                  020 3328 5656 
---------------------------------  ----------------------- 
 Nick Harriss/Nick Athanas/James 
  Reeve 
---------------------------------  ----------------------- 
 
 Walbrook PR - Financial 
  PR                                020 7933 8780 
---------------------------------  ----------------------- 
 Nick Rome/Sam Allen                boxhill@walbrookpr.com 
---------------------------------  -----------------------

This information is provided by RNS

The company news service from the London Stock Exchange

END

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December 02, 2015 04:00 ET (09:00 GMT)

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