Workers' Compensation contract

RNS FOR RELEASE

14 October 2014

Xchanging plc

Workers' Compensation contract in

New South Wales moves into run off

Xchanging plc ('Xchanging'), the business process, procurement and technology services provider, reports that it will be running off its Workers' Compensation contract with the State of New South Wales ("NSW") in Australia during 2015. Xchanging's other Workers' Compensation business in Australia is unaffected.

Xchanging has been managing c.5% share of the State of NSW's Workers' Compensation portfolio since 2010 under a contract that expires at the end of 2014. Earlier this year, the State of NSW invited renewal bids with the aim of reducing the number of their suppliers from the commencement of the new contracts in January 2015.

Xchanging's re-bid was supported by investment in a newly developed module of its Xuber insurance software. Although there are alternative uses for the software module without the contract award from New South Wales, the carrying value of the investment has been reassessed. Accordingly Xchanging will now make an exceptional write-off of c. £5 million in the current financial year.

Ken Lever, Chief Executive, commented: "We are naturally disappointed not to have received an award of a new contract with New South Wales, particularly as we are of the view that Xuber provides the most appropriate technology platform. The loss of this business does not affect our commitment to the workers' compensation business in Australia, which we will continue to develop, supported by the Xuber technology investment."

Enquiries

Xchanging plc Tel: +44 (0) 203 604 6999

David Bauernfeind, Chief Financial Officer

Alexandra Hockenhull, Director of Corporate Communications

and Investor Relations

Maitland Tel: +44 (0) 207 379 5151

Peter Ogden

Emma Burdett

Martin Barrow

www.xchanging.com

@XchangingGroup

Linkedin/company/xchanging

Cautionary Statement: 

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. In particular, any statements regarding Xchanging's strategy, dividend policy and other future events or prospects are forward-looking statements.  Undue reliance should not be placed on any such statements because they speak only as at the date of this announcement and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors (that could cause actual results, and Xchanging's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

These forward-looking statements are not guarantees of future performance and there are a number of factors (many of which are outside of Xchanging's control) which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among these factors are: increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approval or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.

Save for those forward-looking statements required by the Listing Rules, the Disclosure and Transparency Rules and/or the Prospectus Rules, Xchanging undertakes no obligation to update these forward-looking statements, and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this announcements. Xchanging therefore will comply with its obligations to publish updated information as required by law or by any regulatory authority but assumes no further obligation to publish any additional information.