13th Nov 2013 12:31
LONDON (Alliance News) - Xchanging PLC said Wednesday that trading has been "slightly better" than company expectations.
In its latest interim management statement, covering the period from July 1 to date, the business process, procurement and technology services provider said it has continued to win business in each of its industry sectors and service lines, as well as recording higher margins for the group overall.
The company said its procurement division has won a number of new contracts during the period, including with Diageo and Severn Trent, and an extension to its existing contract with L'Oreal. Xchanging said, "These contract wins are helping to build critical mass in the significant US market which, together with the benefits of restructuring of the European cost base, is expected to start to improve the financial performance of this business as we move into the next financial year."
Interest in the firms' Xuber insurance software products have remained strong, with the latest contract signed last week by Everest Re, Xchanging's first competitive win for the product in the US. The company said investment in and extensions to Xuber functionality is ongoing in order to attract more of the insurance market. This is supported by the firm's strong financial position; Xchanging says cash flow remains strong.
With regards to cost efficiencies, a 'Change Programme' has been implemented to reduce costs and improve the productivity of back office functions. Xchanging is also developing a shared services centre in India and is advancing with the streamlining of group-wide HR and finance functions, and the simplification and standardisation of IT systems.
Since acquiring the e-Sourcing technology provider, MarketMaker4, announced in September, MM4 has won a further 8 new customers for Xchanging. The firm has also completed the sale of its shareholding in Xchanging Transaction Bank to Deutsche Bank.
Xchanging also announced today the appointment of Investec Bank PLC and Liberum Capital Limited as joint corporate brokers, with immediate effect.
The firm will release its full-year 2013 results on February 27 2013.
Shares in the technology firm are up 4.9% at 139.00 pence per share as we head into afternoon trading.
By Alice Attwood; [email protected]; @AliceAtAlliance
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