Boxhill Share Discussion Threads

[a2584728] 06/11/2017 07:48

Not exactly sure what this does for the SP

[skinny] 06/11/2017 07:04

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.

[a2584728] 02/11/2017 08:22

Interesting. Nosey buyers

[smcl] 01/11/2017 18:12

Soft t- would it be worth contacting company- know they are not the greatest on communications.

All the best.

[smcl] 01/11/2017 18:11

Mostyn- thanks for some well thought and balanced comments. Much appreciated.

[soft t] 01/11/2017 16:03

PilliteD -------£3 mill debt?

[mostyn] 01/11/2017 15:44

I'm not surprised that there has been some buying interest given that the share price is at an all time low. While the result from H1 was disappointing, and probably unexpected, especially after a more upbeat AGM Statement, this has tended to mask the fact that there was potentially good news in terms of the outlook. The current pessimism (and low share price) seems somewhat unwarranted. It's difficult to divorce the disappointment/frustration of the now, from the possible prospects for the future. This of course depends on their ability to deliver.

Emexpay has been growing revenue by 95% per month and this is expected to continue. If this is compounded one gets some impressive figures, if of course it continues.

The position with H2 should be somewhat clearer. If the significant transactions are going to be well over the figure for the whole of H1, then we are probably looking at over £600,000 on these alone. If Emexpay is growing rapidly then the rest of H2 business (excluding the significant items) should also be well over the £559,000. So we could be looking at over £1,200,000 possibly well over this figure.

As usual with Boxhill it's all in the interpretation of their comments.

The main caveat is that I still don't like either the level or structure of their Trade receivables and trade payables, in spite of receiving past assurances from the company. I'm trying to get clarification on some of these matters but, as anyone who has attempted to contact the company may know, this isn't easy.

[soft t] 01/11/2017 14:58

do not the nomads have a duty to insist the financial position relative to that £3 mill? or how about the auditors?

[a2584728] 01/11/2017 11:41

I think that final paragraph will tempt a few nosey buyers

[johnyee 7] 01/11/2017 10:57

I hope we get an rns when these big payments go through.

[adh0] 01/11/2017 08:56

From the results:
"At the period end the Group was owed GBP2,955,392 from PhilliteD UK Limited (Jul 2016: GBP356,444; Jan 2017: GBP1,767,536)"

Nearly £3m at last count! To be owed that much, given the size of BOX turnover and cash position, from one source is... I do not have the words. You can draw your own conclusions.

[johnyee 7] 01/11/2017 07:38

So PhilliteD in 6 months owed Box an extra 1.2 million if I'm correct.

[sanilav] 01/11/2017 05:50

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.

So shall we get any confirmation that these transactions have been completed thru an RNS as they are supposed to be so significant,or are we going to be left dangling another 6months to find out if they actually happened.Iam afraid the word expected means nothing.
Always expect the unexpected.

[soft t] 31/10/2017 22:46

how about that massive debt owing from phil ,if that does not come in it blows amasive hole in the co.---------or am I mistaken.

[sanilav] 31/10/2017 19:32

Oh well ,2nd on the leader board,just the wrong one.

[smcl] 31/10/2017 17:10

We really do pick ‘em don’t we!!

[sanilav] 31/10/2017 15:54

Thats AIM for you,never a level playing field on this market.Best get used to it,we are at the end of the line.

[smcl] 31/10/2017 15:39

Yeh- insiders knew and dumped.

[a2584728] 31/10/2017 12:28

The BOD need to communicate with the market more often, my worry is that they do not know the detail of the day to day operations and therefore wait for the required updates to talk to the market

[mostyn] 31/10/2017 12:21

A2584728,

The "hidden gem" is why I continue to hold. If revenue for the significant transactions is well in excess of total H1 revenue we should be looking at around £600,000 for those alone. Taking the rest of the statement one would expect other revenue for H2 to be well in excess of that shown in H1 (£559,000) so certainly another £600,000 and probably more. On that basis you get H2 revenue of at least £1,200,000 which ought to deliver a healthy profit. The share price looks to be at rock bottom so should be scope for some decent upward movement, but much depends on improved (or at least more regular) communication from the company.

[a2584728] 31/10/2017 12:00

I wouldn't be at all surprised to see some sizeable buys and even some director purchases in the short term.This smacks of a "nothing" statement with a hidden gem right at the end.Who knows?

[mostyn] 31/10/2017 11:38

My guarded optimism looks to have been misplaced after all. The revenue figure was well below what I was expecting based on what I thought was an optimistic AGM Statement. The chairman's statement doesn't provide much concrete information so another poor communication.

"The total number of accounts is increasing steadily with over 2000 registered users." Individual users, corporate accounts, - the size of account makes a big difference so this doesn't really tell us anything except the number of accounts is increasing. What does steadily mean - 1% per month 5%....

"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." This sounds good, but from what base.

I still don't like trade receivables and trade payables. I would like the directors to spell out in detail why the figures need to be so large for a business that has not produced that much revenue over the last 18 months.

Finally something concrete if they deliver:

" 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." So revenue well in excess of £559,000 which looks like it's for the significant transactions. This is the good news in the statement, but we need to know before the Final Results next July (2018) if they have actually delivered.

I will continue to hold as I expect H2 to be very substantially better, but I'm disappointed with the revenue figure and with the largely meaningless statement that accompanied the results. In the absence of a complete disaster the shares already look to be at rock bottom.

[a2584728] 31/10/2017 11:38

This is the bit I like and this creates a buying opportunity for those not already heavily invested.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.

[smcl] 31/10/2017 11:33

Yeh and lots of selling weeks ago!!

Nice to be in the know isn’t it?