Boxhill restructures its way out of VAT difficulty

Boxhill Technologies managed to administrate its way out of a VAT difficulty on Wednesday, restructuring itself away from an acquired business and moving its 2015 year-end out by six months.

The AIM-traded lottery, software, gaming and leisure company initially purchased subsidiary PayCorp in 2013, but had been unable to satisfactorily address an outstanding VAT matter it identified in 2014.

To avoid a disclaimed audit opinion for the year ended 31 July 2015, the company had now transferred PayCorp's operations out of PayCorp within the group on 29 January. Its 100% shareholding of PayCorp was also transferred to a non-group company on the same day.

Boxhill's financial year-end had been extended to 31 January, and the company was in the process of producing accounts for the 18 months to that date, which would be subject to audit and include the restructuring.

The company's ordinary shares of 0.1p each were to remain suspended from trading on AIM until the publication of the report and accounts.

Boxhill released its second unaudited interim results for the 12 months to 31 July 2015 as well, reporting a 46% increase in revenue on continuing activities to £2.06m.

Its EBITDA was £655,000, up from an LBITDA a year earlier of £172,000. Boxhill's bank and other borrowings were reduced to £18,000 from £489,000 during the period.