Join our community of smart investors

IGNORE

Xchanging announced a solid set of results at the half-year stage with underlying operating profits up 16 per cent to £16m on flat revenues as its self help programme delivered results. The business process outsourcer (BPO) increased operating profit margins from 4.3, to 5 per cent and the cash flowed in with free cashflow up by £16.4m to £19.4m, leaving a strong net cash position.
April 25, 2013

Xchanging announced a solid set of results at the half-year stage with underlying operating profits up 16 per cent to £16m on flat revenues as its self help programme delivered results. The business process outsourcer (BPO) increased operating profit margins from 4.3, to 5 per cent and the cash flowed in with free cashflow up by £16.4m to £19.4m, leaving a strong net cash position.

Flat revenue belied changing fortunes across Xchangings sectors, the financial services operation reported revenues down 9.1 per cent as falling trading volumes hit the securities operations, and technology sales were down 11.3 per cent as they exited a specific infrastructure programme. This tough trading was offset by growth in the procurement business and a stable performance from insurance.

The strong profit performance was largely the result of cost cutting which began in 2011 this greatly reduced head office costs and doubled profits at financial services. Ken Lever, chief executive, said there has been a considerable amount of activity building the foundations for renewed growth, broker Panmure Gordon left full-year adjusted EPS forecasts unchanged at 8.99p.