Xchanging PLC (XCH) - Interim Management Statement
RNS Number : 7148Q
09 November 2012
9 November 2012
Interim Management Statement
Xchanging plc ('Xchanging'), the business process, procurement and technology
services provider and integrator, today issues its Interim Management
Statement covering the period from 1 July 2012 to date.
Current Trading and Outlook
Trading since the half year results has been in line with management plans and
we remain on track to deliver our expectations for full year financial
performance. Xchanging retains a healthy financial position with a strong
The Procurement business has now started to recognise our share of the savings
on the European L'Oréal and North American BAE Systems contracts, following
completion of the initial implementation effort.
We have also continued to make progress building the foundations for future
growth, winning contracts with new as well as existing customers.
Commenting on today's announcement, Ken Lever, Chief Executive, said: "The
period since our half year results has seen further positive developments. We
have won a number of contracts and launched two new products. We have also
achieved a satisfactory strategic resolution for our formerly loss-making
business Kedrios. We still have much to achieve, but this evidence of progress
is very encouraging."
During the period we won a £65.5 million five year follow-on contract to
continue providing the Insurers' Market Repository. Previously an annual
contract, the new arrangement provides greater earnings visibility and
confirms the strength of our relationship with the London insurance market as
we invest in new technology to continue developing this key piece of London
market infrastructure. Yesterday, we announced further that Xchanging has been
awarded a contract by Lloyd's to build the platform for the Lloyd's Claims
Reporting Suite ("CRS"). The CRS will provide Lloyd's and managing agents with
a set of online dashboards carrying claims management information.
In September we won a further technology contract with Gatwick airport.
Building on this strong customer relationship the additional contract is for
four years and covers the provision of telephony services.
In Procurement we have won a three year contract with Grupo Panrico S.A., one
of Spain's leading bakery companies. This builds on our Spanish procurement
presence, following our entry into this market with the 2011 L'Oréal contract
New Product Launches
In September we launched a pilot scheme for our new settlement services
offering, Netsett. Modelled on a service already provided to the London
insurance market, Netsett is designed to provide net settlement services to
the global insurance market using Accord messaging standards, in partnership
with Deutsche Bank as settlement bank.
In October we launched our redeveloped suite of insurance software products
under the business name "Xuber". Xuber addresses all segments of the Property
& Casualty insurance market and forms the core of the insurance offering we
are taking to the US market.
Yesterday, Thursday 8 November, we announced that Xchanging's Italian
subsidiary, Kedrios S.p.A. ("Kedrios"), acquired 100% of AR Enterprise S.r.l.
("AR"). The acquisition has enabled us to address Kedrios' long term weak
strategic position in its market and accelerate financial improvement,
creating a profitable company with a significant market position and greatly
improved growth potential based on leading technology. As well as resolving a
strategic issue, the acquisition now means Xchanging no longer has any
We have appointed two additional Non-executive Directors to the Board during
the period: Saurabh Srivastava in late August, and more recently Ian Cormack
in October. Saurabh brings further technology experience to the Board and Ian
has a strong background in Insurance and Banking. Dennis Millard stood down
from the Board and its committees in early September. At the same time,
Saurabh joined the Audit Committee in place of Michel Paulin, who joined the
Remuneration Committee. Ian Cormack has assumed the role of Senior Independent
Director, given Dennis Millard's retirement from the Board.
Tel: +44 (0) 207 780 6999
David Bauernfeind, Chief Financial Officer
Alexandra Hockenhull, Head of Corporate Communications
and Investor Relations
Tel: +44 (0) 207 379 5151
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
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. Undue reliance should not be placed on any such statements
because they speak only as at the date of this document 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.
There are a number of factors which could cause actual results to differ
materially from those expressed or implied in forward-looking statements.
Among the factors that could cause actual results to differ materially from
those described in the forward-looking statements 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
This information is provided by RNS
The company news service from the London Stock Exchange
IMSUWRWRUKAARAA -0- Nov/09/2012 07:00 GMT
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