14 Oct 2013 07:00
Boxhill Technologies plc
("Boxhill" or the "Company")
Change of Name, Trading Update, and New Contracts Signed
14 October 2013
The Board of Directors of Boxhill (the "Board") (AIM:BOX), the AIM quoted lottery, software, gaming and leisure company is pleased to provide a trading update to shareholders.
Change of Name and Website
Following approval by shareholders at the general meeting held on 10 October 2013, the Company's name was changed from The Weather Lottery plc to Boxhill Technologies plc with effect from 11 October 2013. The Company's TIDM code has changed from "TWL" to "BOX" with effect from today.
The Company's AIM Rule 26 website can now be found at www.boxhillplc.com.
Trading Update
Boxhill is pleased to announce that their payments software subsidiary Pay Corporation Limited ("Pay Corp") has signed a contract with business software and services company Bright Office Limited ("Bright Office"), to provide Bright Office's customers with payment services. This is an important development for Pay Corp as it further extends its payment gateway outside of the gaming and lottery sectors. Bright Office supply customer relationship management software across a broad range of customers including solicitors, payment protection insurance ("PPI") claims management firms, finance brokers and mortgage advisers. A significant number of their clients require payment services as they fall outside of the scope of traditional payment services providers. Based on historic data, the Board estimates that a typical PPI claims management firm will generate revenues for Pay Corp of between £8,000 and £16,000 per month. Pay Corp anticipates a minimum take up of its services by between 10 to 20 Bright Office customers during the financial year to 31 July 2014. The deal includes an incentive plan in the shape of a revenue share for Bright Office to encourage their customers to take up Pay Corp's services which the Board believes will help the Company to serve a significant proportion of Bright Office's customers across the whole of its customer base.
Since the acquisition of Pay Corp on 13 September 2013, it has also signed up two new international clients among its traditional gaming client base. It is too early to give an assessment of the likely revenues from these contracts, but the early indications are encouraging further information will be provided at the Company's next trading update..
There has been continued progress in revamping the lottery business (the "Weather Lottery") over the last six months, with a number of new customers added and existing customers developed. This includes a refocused Lib Dems lottery which was launched at the Liberal Democrats autumn conference in Glasgow in September, which will be rolled out across England in the coming months, the new player's website with the ability to play online and increased resources to help societies promote their lotteries locally. The Weather Lottery is also adding additional business development staff to increase sales and support new and existing societies raise money. In October the lottery passed through the £5million threshold paid to good causes and has paid out millions in prizes to players.
The Company anticipates giving a further trading update in November to cover the first quarter of the financial year to 31 July 2014.
Regulatory Development
On 9 October 2013 HM Treasury made the following announcement:
"Today, the government has announced the creation of a new, utilities-style regulator charged with increasing competition in the payments sector. The government is determined to empower smaller firms to challenge the big banks to deliver real benefits for each and every user of financial services."
The full announcement can be viewed at https://www.gov.uk/government/news/government-to-overhaul-uk-payments-system.
The Board believes that the proposed liberalisation of the payments sector will offer significant opportunities for innovative providers like Pay Corp. Chairman Lord Tim Razzall commented, "These reforms present a particular opportunity for our Pay Corporation business which, alongside traditional payment capabilities where we continue to see revenues grow, is developing new technology based services that are well placed to take advantage of these changes."
For further information contact:
Boxhill Technologies PLC 020 7618 9000
Philip Jackson, CEO
Website www.boxhillplc.com
Allenby Capital Limited (Nomad & Broker)
Nick Harriss/Nick Athanas/James Reeve 020 3328 5656