TIDMBOX

RNS Number : 2309N

Boxhill Technologies PLC

14 May 2015

14 May 2015

Boxhill Technologies plc

("Boxhill" or the "Company")

Trading Update

Boxhill Technologies plc (AIM: BOX), the payment software and lottery group, announces a trading update covering the nine month period ended 30 April 2015. As the results for the six months to 31 January 2015 that were previously announced have shown, the Company has made significant progress in the year so far. Revenues are well ahead of the comparative period last year and the Company has moved into profitability. For the quarter to 30 April 2015 Boxhill has seen revenues continue to grow and pro-rata profits increasing as a result. As such the Boxhill management is confident that the full year out-turn will be at least in line with the statement made when the full year results for the year to 31 July 2014 were announced on 6 January 2015, which was that estimated group revenues for the financial year ending 31 July 2015 are expected to at least double those in the year ended 31 July 2014 based on current contracted business.

HIGHLIGHTS

-- Total transaction volume growth within the Payments Division, on a like for like basis, of 374% for the six months ended 31 January 2015, with a positive trend continuing in Q3.

-- The Company returned to profitability in the first six months and the early indications show Q3 profitability has accelerated.

-- Net increase of 20 customers using the Company's payments technology in the 9 months to 30 April 2015

Payments Division

Boxhill's payment division experienced robust trading for the six months to 31 January 2015 and this growth has continued through the following quarter. Transactions managed via its platforms have increased by 374% when comparing H1 2014 to H1 2015. The Company expects a slight slowdown during the break between the UK football seasons through June and July as football betting currently provides a significant proportion of the division's transactions. The impact of the lack of football betting is expected to be somewhat reduced by events such as Wimbledon and F1, as well as the addition of new customers and the anticipated growth in FX transactions (following the Company's successful first installation in this area, as announced on 5 September 2014).

During the period the Company continued to grow its customer base - winning a total of net 20 new clients. The Company is also focused on integrating with payment gateways and other payment technology providers as a means to increasing our appeal and reach for merchants and other service providers.

The new contracts within the payments division broadens the Company's customer base across e-commerce businesses of all kinds, including online gaming, foreign exchange and general e-commerce customers. The company continues to see an increase in transactions across all customer groups and expects further significant wins and increased business with existing customers in the coming months.

Casino Cash Machines

Roll out of the new Casino Cash machines has been delayed slightly compared to the Company's original expectations at the time of the product's launch last September, in order to improve certain design features based on the six months of user data gathered from the existing sites. Despite the slight delays, the Casino Cash product will still be a positive addition to overall Group operating margins this year. The Company also wanted to achieve profitability before making further investments as this would open up other options for funding the expansion of Casino Cash without tying up undue amounts of the Company's working capital.

Prize Provision Services

Prize Provision Services Limited ("PPS"), the operator of The Weather Lottery, recently launched its new website (www.prizeprovision.com) as part of its marketing campaign, highlighting current clients and its services, including 'Boost' - a managed lottery marketing service and the ability for a client society to create its own lottery offering.

In addition, PPS is making further improvements to its Weather Lottery software. These improvements will offer greater transparency to all clients and has the potential to offer further services to client societies, which will be investigated in the coming months.

One service which is expected to positively impact player acquisition and retention is the introduction of direct debit as a payment method which is due to be introduced at the end of Q2 2015.

These improvements, along with the development of sales and account management staff, who have recruited a small number of new societies this year, are expected to deliver a small net increase in the total number of lines being played over the next six months.

Soccerdome

The Company continue to work with Nottingham Council as the reopening of the Harvey Hadden Sports complex nears, including negotiating a significant extension to the lease. The Company is in active discussions with a number of parties with a view to Soccerdome re-opening and in respect of management of the venue on a joint venture basis.

Phil Jackson, Chief Executive, commented:"The growth strategies for our existing businesses are clearly established, albeit from a low base, and they bear the hallmarks of real progress. We have moved into profitability and expect to maintain that. The board are committed to delivering shareholder value and developing a business with a number of operating businesses focused on e-commerce and gaming."

For further information contact:

 
 Boxhill Technologies PLC           020 7618 9000 
---------------------------------  ----------------------- 
 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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