14th May 2015 14:17
LONDON (Alliance News) - Boxhill Technologies PLC shares rose on Thursday after it said its revenue and pro-rata profits have continued to grow since its half year results, and said its full year results will be "at least" in line with expectations.
Boxhill shares were up 33.3% to 0.160 pence per share on Thursday afternoon.
"The company has made significant progress in the year so far. Revenues are well ahead of the comparative period last year and the company has moved into profitability. For the quarter to April 30, 2015, Boxhill has seen revenues continue to grow and pro-rata profits increasing as a result," it said in a statement.
The minimum expectations for the the payment software and lottery group's results is that revenue will double from the previous financial year.
Boxhill said total transaction volume in the payments division on a like for like basis almost quadrupled in the six months to January 31, 2015 and said the positive trend had continued into the third quarter, accelerating the company's overall profitability.
"The new contracts within the payments division broadens the company's customer base across e-commerce businesses of all kinds, including online gaming, foreign exchange and general e-commerce customers," it said.
In the first three quarters of the financial year, the company has gained 20 new customers using the company's payment technology.
However, the growth in the payments division is expected to slow in June and July due to the break in the UK football season, which will reduce betting.
"The impact of the lack of football betting is expected to be somewhat reduced by events such as Wimbledon and F1, as well as the addition of new customers and the anticipated growth in foreign exchange transactions," said Boxhill.
Roll out of the new Casino Cash machines has been delayed slightly compared with the company's original expectations at the time of the product's launch last September, in order to improve certain design features based on the six months of user data gathered from the existing sites.
"Despite the slight delays, the Casino Cash product will still be a positive addition to overall group operating margins this year," it said.
At the end of the second quarter of 2015, the company is planning on introducing direct debit as a payment method for its prize provision services division, which has recently launched its new website.
"These improvements (to the prize provision services), along with the development of sales and account management staff, who have recruited a small number of new societies this year, are expected to deliver a small net increase in the total number of lines being played over the next six months," said the company.
""The growth strategies for our existing businesses are clearly established, albeit from a low base, and they bear the hallmarks of real progress. We have moved into profitability and expect to maintain that. The board are committed to delivering shareholder value and developing a business with a number of operating businesses focused on e-commerce and gaming," said Chief Executive Phil Jackson.
By Joshua Warner; [email protected]; @JoshAlliance
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