Update on Annual Report and Accounts

15 August 2018

BOXHILL TECHNOLOGIES PLC

 ("Boxhill", the "Group" or the "Company")

Update on Annual Report and Accounts

Further to the announcement of 1 August 2018 (the "Announcement"), the Company confirms that it continues to work with its auditors, KPMG LLP (the "Auditors"), to finalise the annual report and accounts for the year to 31 January 2018 which have been delayed due to the matters outlined in the Announcement remaining outstanding. 

As stated in the Announcement, the Auditors require certain outstanding information from one of the Company's banks and the final risk review relating to the high value transfer service ("HVTS") announced on 28 July 2017. Whilst it is expected that the final risk review for the HVTS will be resolved shortly, for the reasons set out below it is proving more difficult to obtain the other necessary information required by the Auditors from one of the Company's banks than originally expected by either the Company or the Auditors. As a result, the timing of the successful conclusion of the audit process is now difficult to forecast in the short-term.

Following the dismissal of a former subsidiary director (the "FSD"), a change to the bank account mandate of one of the Group subsidiary companies (where the FSD was the sole authorised signatory) has not yet been possible and therefore the requirement of the Auditors for a year-end balance and status confirmation letter cannot at this time be issued. The subsidiary company was beneficially owned as part of the Group with the shares registered in the name of the FSD as nominee and was part of the Emex sale as announced on 12 July 2018 and completed on 30 July 2018. The Company expects that a formal legal process will now need to be followed to set up a new bank mandate and a confirmation letter to be issued. The Company expects this process could take around 3 months. The Company requested on 22 May 2018 that the bank account be frozen to protect balances while this process is completed.

Trading in the Company's ordinary shares of 0.1 pence each remain suspended on AIM pending publication of the annual report and accounts for the year to 31 January 2018.

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