Weather Lottery administration and payment processor Boxhill Technologies unable to satisfy auditors on 'one outstanding item'

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Boxhill Technologies unable to satisfy auditors on 'one outstanding item'

Boxhill Technologies FTSE AIM All-Share Weather Lottery administration and payment processor Boxhill Technologies updated investors on some recent developments on Thursday but offered no timeline for the readmission of its shares to trading as its half-yearly financial reports remained unpublished. Boxhill said work to satisfy auditors on "the one outstanding item" was ongoing and assured shareholders they would be notified as soon as the audit is completed.

In terms of recent activity, Boxhill revealed its subsidiary Prize Provision Services, which operates the Weather Lottery, had been awarded a contract to operate a lottery for one of the UK's largest membership organisations, with over two million potential participants.

The AIM-listed group said the organisation was investing "a six-figure sum" in internal marketing to drive its membership and expects to see a "substantial uplift in lottery lines".

Elsewhere, Boxhill said the reorganisation of its payments business following the disposal of Emex had led to a switch in focus to "more mainstream clients and markets" within its Market Access wing. Boxhill stated the move placed its payments business in a more competitive arena, where margins are lower, something it noted would be reflected in its first-half results. "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," Boxhill said. As of 1130 BST, Boxhill shares were still suspended.  

https://uk.webfg.com/news/aim-bulletin/elektron-morgan-sindall-safeland-boxhill-tech-arden-biome--3571770.htmlfi

In other news

Boxhill Secures Contract To Operate Lottery For Big UK Organisation

 LONDON (Alliance News) - Boxhill Technologies PLC said Thursday its unit Prize Provision Services Ltd won a contract to operate a lottery for a large UK membership organisation.

The unnamed organisation, with more than two million people which could participate in the lottery, is investing a six-figure sum in internal marketing to drive its membership to contribute.

Meanwhile, the company added that it expects margins in its Payment business to be lower in its half-year results after the sale of the Emex Group Ltd prompted a reorganisation of the unit.

The company sold the unit to MDC for GBP2 million in July.

"The reduction in revenue reported in 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," Boxhill said.

"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."

Back in July, the company said it experienced a "substantial decline" in payment processing revenue in May and June due to "a requirement by particular banks to change the nature of transactions they are willing to deal with following regulatory changes."

The company subsequently disclosed that the revenue reduction was around 75%.

Meanwhile, Boxhill said work with its auditors to finalise the delayed annual report and accounts for the financial year that ended this past January, is ongoing.

This is the fifth time that the lottery manager and football centre operator said its auditing work is ongoing, after its shares were suspended at the beginning of August.

http://www.morningstar.co.uk/uk/news/AN_1541072245111408800/boxhill-secures-contract-to-operate-lottery-for-big-uk-organisation.aspx