Xchanging’s 2013 Annual Results Meet Expectations
Operating Profit Increases 10.1%
LONDON--(BUSINESS WIRE)--Xchanging plc, the business process, procurement and technology services provider, has announced its 2013 annual results, highlighting that it achieved its objective of a year-on-year improvement in financial performance. The company saw adjusted operating profit increase by 10.1% to £55.5m and net cash increase by 56.4% to £120.1m.
The results demonstrate the progress made in the transformation of the Xchanging business based on: a new business model that is less dependent on individual major customers; using technology as an enabler of business processes; and developing differentiated product and service offerings driven through innovation.
Key outcomes from the business sectors include:
- Business Processing Services showed strong performance, including a successful Netsett pilot, launch of the X-presso mobile application, and the integration of AR Enterprises and Kedrios, forming Xchanging Italy. Also significant was the planned sale of Xchanging’s shareholding in Xchanging Transaction Bank (XTB), effective 1 September 2013.
- Technology had a stronger year supported by Xuber revenues from the Marsh contract, and won its first US Xuber contract, with Everest Re, in November 2013, following the launch in April.
- Procurement had a more challenging year, but saw a good stream of new contract wins in the second half, including Godiva and Severn Trent Services. September saw the acquisition of eSourcing company MarketMaker4, enhancing the business’ technology offering, bringing a new customer base, and strengthening Xchanging’s position in the new US market.
Ken Lever, Chief Executive, commented: “I am pleased to report that in 2013 we have made further progress in the transformation of the Xchanging business and achieved our objective of year-on-year improvement in financial performance. We are in a much stronger financial position, with robust cash-flows and a newly re-financed bank facility. Across our businesses we have made good progress in our strategic development, notably in adding technology-enablement, for example, through the acquisition of the eSourcing business MarketMaker4.
“We will press ahead with our transformation process in 2014. Our aim is to maintain our current level of operating profit despite the anticipated revenue reduction from areas of business where we have chosen not to operate going forward. This will position us well for a resumption of growth in 2015.”
Notes to editors
What we are
Xchanging provides business processing, technology and procurement services internationally for customers across multiple industries.
What we do
Xchanging brings innovation, thought leadership and passion to its customers’ businesses so as to enhance performance and value. Our values are embedded into everything we do.
What we want to be
Xchanging wants to be regarded as the best provider in its chosen markets by delivering services that are recognised for outstanding quality, reliability and innovation.