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Outlook The payments division continues to win new customers across all areas of e-commerce. Working with channel sales partners we are able to acquire customers who previously may not have been accessible to the Company. With the additional services offered by EMEXPAY and Freepaymaster Limited we can now provide a complete set of traditional and alternative payment services to businesses and individuals. The acquisitions are already bearing fruit with the Company's newly combined services providing sales from existing and new customers. In addition, fees paid to EMEXPAY for their services are of course now revenue for the Group. The joint venture with Soccerdome has secured its future. The newly redeveloped centre opened this month and is expected to generate a modest income whilst allowing the management team to focus on the Company's core businesses. Having delivered on its promise of returning to profitability the Board will continue its focus on prudent management of costs and realising the return on investment the expanded business will bring about. The year ahead sees the challenge of delivering shareholder value through the continuing growth in the payments business which will be aided by the planned appointment of a new chief executive in the near future. Lord E T Razzall Chairman 26 May 2016

The significant progress made in revenue growth and operating profit demonstrates the Board's focus on building a sustainable business, in no short measure helped by our small team of dedicated staff. The biggest contributor is the payment software business and this is where the Board believes we are only just beginning on a journey towards building a significant player in the exciting FinTech sector. The lottery business remains steady, and has seen behind the scenes improvements in both the technology it relies upon and the day to day functioning of the business. It is now well placed for growth. In the last Annual Report and Financial Statements reference was made to a matter relating to a subsidiary company, Pay Corporation Limited ("Paycorp") with a possible liability for VAT and an equivalent amount due from debtors. The auditor's concerns therein related to proof of recoverability of this amount from those recipients and others and the relating potential liability to HMRC. Although the matter was not a liability of the Parent Company but that of a wholly owned subsidiary, it was felt that a disposal of the subsidiary would be the prudent method of removing the risk of that potential liability affecting the Group in the future. The Board sought specialist legal and regulatory advice prior to the transfer into Boxhill of Paycorp's trading activity and the subsequent sale of that subsidiary to a third party. Operational Summary The Board has delivered on its promise of profitability. The Company has also concluded the acquisitions of EMEXPAY and Freepaymaster Limited. EMEXPAY was an existing supplier of acquiring services to the Company and brings further services into the Group widening our appeal to customers. The expanded Company is now able to take advantage of its increased capacity and functionality, with improvements to existing and new services being rolled out in the coming weeks. Prize Provision Services Limited, which operates The Weather Lottery, has performed in line with expectations and continues to play an important role in raising funds for hundreds of small charities and non-profit organisations. This period we saw a jackpot winner. Since incorporation and to date the Company has paid out prizes to the value of £4.9m and has raised £5.4m for good causes. The opportunity remains to support good causes at grass roots, a gap created when the National Lottery announced it will only support sports at an elite level.

Operating and Financial Review The Company continues to develop the payments business and its growth has brought about a welcome return to operational profitability. The future brings, with the completion of the acquisitions of both Emex (UK) Group Limited (EMEXPAY) and Freepaymaster Limited, a comprehensive offering as a FinTech company. In addition to payment processing enabling merchants to accept traditional and alternative payments, our new services include digital wallet accounts for businesses and individuals, peer to peer transactions, access to foreign and crypto currency exchanges, worldwide wire payments and other emerging transaction methods allowing businesses and individuals to securely pay before, during or after using a service or purchasing a product. Financial Summary In my review of the half-year figures to 31 January 2015 the Group made an operating profit before exceptional items of £296,000 (2014: loss £49,000). I am pleased to report that for the 18 months to 31 January 2016 the Group achieved an operating profit before exceptional items of £970,000 compared to £626,000 for the year to 31 July 2015 (2014: loss £110,000). In summary, for the eighteen months to 31 January 2016 the Group performance was as follows: Revenue £3,286,000 Gross Profit £2,423,000 EBITDA £1,006,000 Operating profit before exceptional items £970,000 Exceptional Items: Loss for the period on disposal of subsidiary (£430,000) Loss on disposal of Leasehold Land and Buildings (£342,000) Taxation charge (£205,000) Loss for the period (£1,000) The Consolidated Income Statement shows exceptional costs of £430,000 relating to the loss on sale of Pay Corporation Limited (£460,000 is a non-cash item representing a write off of goodwill and thus does not affect the ongoing business being integrated into EMEXPAY) and a further non-cash loss of £342,000 in respect of the disposal of the leasehold land and buildings. The loss on disposal of leasehold land and buildings resulted from the creation of the joint venture to manage the Soccerdome facility and secure its future for the benefit of the Group, avoiding capital spend of at least £200,000 and securing an income of £250,000 from Soccerdome moving forward.

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