Lottery


Our lottery has been in operation since 2002 and we hold a coveted UK external lottery managers licence. We have raised over £5 million for good causes and paid prizes to over 1 million winners.
Expansion to the lottery will see improved games and support for societies, underpinned by an expanded business development team.

e-commerce technology


Online purchases are the life blood of almost every consumer facing company in the developed world.
Boxhill have a range of products that suit all merchant’s needs, working within both regulated frameworks and in regions where traditional acquiring partners struggle to offer safe, secure services.

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Up 20% or as we call it - the spread!!

Half-Yearly Report for the period ended 31 July 2017

Chairman's Statement
The half year to 31 July 2017 has seen significant balance sheet improvements despite a reduction in revenue (£559,000 H117 versus £1,125,000 in the six months to 31 July 2016) delivering an operating loss for the six months to 31 July 2017 of £358,000. This compares to an operating profit of £288,000 for the six months ended to 31 July 2016. The operating loss is somewhat offset by the revaluation of equity investment in Timegrand which takes Total Comprehensive Income for H1 2017 to £141,000. (£288,000 in H1 2016).
The first half of the year has seen continued investment in technology roll out and regulatory and compliance management in the payments division. Unfortunately certain planned H1 revenues have slipped into H2 due to circumstances outside the group's control. Having said that, the independent assessment of Timegrand has valued the software at £1.5m contributing to a 27% improvement in total assets rising to £3,641,000 (from £2,848,000 in the first half of 2016).
The Company continues to expand its geographical reach and roll out new technologies. In H1 2017 we have successfully launched multi-currency vIBANs (virtual international bank account numbers) for individuals and corporations and introduced SMS based two-stage verification of payments from accounts. The total number of accounts is increasing steadily with over 2000 registered users. EmexGo account users have the unique ability to fund by, and pay out to, any card from any issuer world wide.
EmexPay, the credit card processing business, has seen growth in revenues growing at an average of 95% per month as customers reintegrate after the disruption to services last year - and this trend is expected to continue throughout the year. Additionally, new China Union Pay facilities agreed in September opens up further opportunities for existing and new merchants to access what is the largest card payment organisation in the world.
The Emex branded companies have been present at a number of key trade and specialist industry events, including recent attendance at SIBOS (Swift International Banking Operations Seminar) in Toronto and they will be exhibiting at Sigma (Summit of iGaming) in Malta in November.
Our network of corresponding financial institutions continues to grow with new key relationships in Europe, Africa and the Caribbean. New licence applications are in progress in Mauritius and central Europe, both of which are due to be granted in the very near future, improving our ability to deliver services worldwide.
Prize Provision Services Limited ("PPS"), which operates The Weather Lottery, is operating as expected and in line with projections. PPS has recently launched the Sports Club Lottery http://sportsclublottery.com, a sister product to The Weather Lottery, which is focussed solely on helping local sports clubs raise additional funds through the operation of their own subscription lottery. Additional account management staff have been hired by PPS and tasked with increasing participants playing the lotteries which the company administers on behalf of its clients.
Soccerdome Ltd holds a stake in Nineteen Twelve Holdings Ltd, the owner a 5-a-side football centre in Nottingham, operated by Astro Kings Ltd. As outlined in the Full Year Results published 7 July 2017, the football pitch business is no longer considered an operating segment of the Group. The venture faces strong competitive challenges following the expansion in number of all-weather pitches available in the region over recent years. Naturally, this has led to a highly competitive marketplace. The directors do not expect there to be any significant impact upon the group from this venture.
Boxhill's payments division has a very healthy sale pipeline with a number of significant transactions in progress which are expected to close in the coming few weeks which will yield revenues well in excess of the entire business H1 revenues.
Finally, the company is pleased to announce that all historical legal matters have successfully been bought to a close.

Update on New Service & Litigation



Update on New Service

The Company announced on 28 July 2017 that it was launching a new high value transfer service facilitating transactions in excess of €10,000,000 for corporate and individual customers ("HVTS") by its wholly-owned subsidiary, Emex Technologies Limited ("Emex"), a regulated payment processing business, utilising the emexGo payment platform ("emexGo"). While HVTS has not generated any revenue to date, it is a service that the board of directors of Boxhill (the "Board") anticipate will produce significant revenues in the future and provide for a substantial increase in the monies passing through emexGo, a key focus of the Group. Emex receives ad valorem fees on all monies through emexGo (the "Processing Fees").

The development of HVTS has involved substantial investment. It has been agreed that part of this investment will be funded by Phillite D UK Limited ("PDU"), a company which between December 2014 and November 2016 undertook certain regulated payment processing activities on behalf of the Group. PDU will market HVTS to its clients as part of its offering of payment services, charging fees independently and not receiving any share of the Processing Fees. PDU's share of the investment costs (circa £1,434,000 has been claimed from PDU to date) will be met from future receipts secured by PDU on HVTS transactions where PDU will in some circumstances be acting as the principal and other circumstances as an agent. PDU's share of the investment costs are currently represented on the Boxhill balance sheet as a trade receivable (the "Agreement").



Update on Litigation

As announced on 31 October 2017, the historic legal matters surrounding the Company's relationship with its former regulated payment processor, EU Pay Group Limited ("EUPay") has been settled without any adverse cost implications. PDU has independently of the Company taken responsibility for the amounts owed by EUPay to the Group (the "Arrangement"). As a result of the settlement, PDU is now in a position to pursue the collection of these amounts without any hindrance from the now settled litigation. This will facilitate the repayment of the amounts outstanding to the Group (circa £224,000) under the Arrangement.



Related Party Transaction

PDU is controlled by Philip Jackson, who is also a director of Emex Technologies Limited and Soccerdome Limited which are wholly owned subsidiaries of Boxhill. The Agreement constitutes a related party transaction under the AIM Rules. The Board consider, having consulted with Allenby Capital Limited, the Company's nominated adviser, that the terms of the Agreement are fair and reasonable insofar as Shareholders are concerned.



Revaluation of Timegrand Software

Further to the announcement of 31 October 2017, the Company contracted an independent expert to undertake a valuation of the intangible assets included in the Timegrand Limited acquisition (announced 10 April 2017) in consultation with its auditors. The increase in the value of these intangible assets, which principally consists of software, announced on 31 October 2017, reflects the outcome of this independent valuation.



Search for New Chief Executive Officer

The Company confirms that it continues in its search for the best candidate to perform the chief executive officer role for the Group.

Goodness knows whats going on here!

Trading Statement

Not dead yet....

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 £2,000,000, 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.