Boxhill Technologies PLC Trading Update & Proposed Acquisition (5492W)
February 10 2017 - 1:00AM
UK Regulatory
TIDMBOX
RNS Number : 5492W
Boxhill Technologies PLC
10 February 2017
10 February 2017
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
Boxhill Technologies plc
("Boxhill" or the "Company")
Trading Update & Proposed Acquisition
Trading Update
The board of directors of Boxhill (the "Board"), the payment
software and lottery group is pleased to provide a further trading
update.
Payments Division
Progress in the payments division has slowed during the second
half of the year due to new regulations introduced by card scheme
operators and acquiring banks. This has led to a slowdown in credit
card processing. During the slower than usual period EmexPay used
the time to upgrade security systems including rolling out industry
leading 256bit encryption tools across all data sets, and to expand
its network of partners and suppliers to provide for a strong and
sustainable foundation for future growth.
For example Emex Technologies now has established corporate and
acquiring banking relationships with Pasta Bank, Latvia; State Bank
of Mauritius; Mauritius Commercial Bank; Sparkasse Bank, Malta;
Euro Exim Bank, Gambia and Wall Street Financial in Canada and the
USA as well as enhanced services from suppliers in Bulgaria and
Georgia.
The scheme rule changes have restricted the ability of certain
suppliers to provide the market with the full range of credit card
transactions. In doing so it has vindicated the decision to acquire
FreePaymaster, which has been rebranded as EmexGo to better suit
SWIFT requirements, and now offers a wide range of services
including cross border payments, alternative payments and peer to
peer payments. It's strategic relationship with Trade and Merchant
New Zealand bring access to SWIFT (Society for Worldwide Interbank
Financial Telecommunication) and a network of some 91 banks around
the world and the ability to issue IBANs (International Bank
Account Number) which will be live in 2017.
The Company launched a new secure voucher service at the Malta
Gaming Summit (SIGMA), which links services between EmexPay,
EmexGo, merchants and their customers. Supported not only by
presence at the conference, EmexGo has also advertised in key
locations around Malta, often near to potential client locations.
So far, the company has had an excellent response to the voucher
product and expects to be present on over 400 websites (through
approximately 40 clients) by the middle of 2017 and has also seen a
threefold increase in EmexGo corporate customers in the last two
months.
Lottery Division
Prize Provision Services Limited ("PPSL"), the Company's lottery
operating subsidiary, has progressed with improvements across the
business as planned
Direct bank payments for clients was introduced in September and
taken up by around 30% of clients, including the top 100 clients
who targeted after being identified as the primary beneficiaries of
the introduction
The revamped admin centre was introduced on schedule in October.
The centre gives clients a simple understanding of their lottery at
a glance and allow clients to self-serve in a number of areas.
Rolling improvements to the centre are in production and planned
for regular releases.
The new Weather Lottery website was launched on January 9 2017.
The website represents a significant improvement having been
designed and built from the ground up to support the new product
brand which invites players to 'Support a Great British Good
Cause'. The new site incorporates a number of innovative features,
is responsive, mobile friendly and fully search engine
optimised.
Feedback has been extremely positive from clients and the
website will be developed over the coming months based on client
and end user feedback.
Soccerdome
The Soccerdome joint venture in Nottingham Soccerdome Ltd and
Nineteen Twelve Holdings Ltd which sees Astro Kings Ltd operating
the football pitches at the Harvey Hadden Sports Village in
Nottingham is operating satisfactorily in line with
expectations.
The focus is on increasing awareness of the venue in order to
increase sales and pitch utilisation levels. A number of local
men's and women's football teams make regular use of the venue,
giving positive feedback. Leagues will look to be established in
the next six months and are expected to be a significant revenue
driver for the business.
Proposed Acquisitions
The Company has agreed heads of terms to acquire Timegrand
Limited, a recently incorporated special purpose vehicle
("Timegrand"). On completion of the acquisition, Timegrand will
hold intellectual property, software and knowhow including a
licence to use an advanced Payment Gateway software system with
advanced analytics and security/fraud management as well as finance
and administration services. The software and knowhow this
acquisition brings will help improve processes and turnaround times
for our administration and reconciliation activities and internal
reporting capabilities. Boxhill is already using certain elements
of the software suite, as are several of its customers, and the
benefits have proved to be significant.
The Acquisition, expected to conclude in 1Q 2017, is for a
proposed consideration of 500,000,000 new ordinary shares of 0.1
pence ("Ordinary Shares"). The Acquisition is being made to further
enhance the offering of the Payments Division and will include
Gateway Processing Software with enhanced reporting capabilities,
Fraud Management Software and Finance and Administration Services
bringing about improved efficiencies between our delivery and
internal finance functions. A further more detailed announcement on
the acquisition will be made once a sale and purchase agreement has
been concluded.
Lord Razzall, Executive Chairman, commented:
"The changes to regulations for credit card processing
introduced particularly by Visa have resulted in a temporary
slowdown in the operation of the Payments Division. We have taken
this opportunity to develop and enhance the business in ways which
will produce positive results in the coming months, as will the
development of EmexGo.
In addition, the acquisition of Timegrand saves both time and
money by delivering increased efficiencies and resource-saving
functionality which, with one eye on the future, will assist as we
continue to make planned progress within our payments division.
Additionally we are continuing to look for a new CEO and will
update as and when appropriate."
For further information contact:
Boxhill Technologies
PLC 020 7493 9644
-------------------------------------- ------------------
Lord Razzall, Executive
Chairman
-------------------------------------- ------------------
Website www.boxhillplc.com pr@boxhillplc.com
-------------------------------------- ------------------
Allenby Capital Limited
(Nomad & Broker) 020 3328 5656
-------------------------------------- ------------------
Nick Harriss/John Depasquale/Richard
Short
-------------------------------------- ------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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