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Xchanging Says Chief to Step Down, 2011 Profit Will Disappoint

Xchanging Plc said Chief Executive Officer David Andrews resigned with immediate effect, and the provider of back-office services said 2011 underlying operating profit will probably be lower than analysts’ estimates.

Operating profit will drop this year mainly because of the absence of contract settlements, a contract termination, and a deteriorating performance in the U.S. claims business, the company said in a statement on Regulatory News Service.

Andrews, the company founder, will take a new role as senior adviser to the chairman to support business development, the company said. Ken Lever, chief financial officer, will be acting chief executive while a successor is sought, and Nigel Rich will be executive chairman, Xchanging said.

“Actions are being taken to mitigate the impact on operating profits in 2011 which include restructuring and cost reduction initiatives,” the company said in the statement.

Xchanging said its underlying operating profit excludes one-time items, amortization, and costs of acquisition.

To contact the reporter on this story: David Altaner in London at daltaner@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net

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