Xchanging (XCH), a business process and technology services provider, has won a renewal of its contract with BAE Systems to provide procurement services.
BAE has played hard ball though; Xchanging admits the new, three year agreement will have a lower margin than the existing contract.
Despite the drop in margin XCH had risen 1.2% by 10:22, continuing gains of 63% made over the last 12 months.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Commenting on the new contract, Xchanging's Chief Executive, Ken Lever, said: "We have an extensive relationship with BAE Systems across three continents and this new contract will also support our wider relationship with this valued customer."
BS
-
Fire up your business savingsFor SMEs looking to boost their returns, Tide’s business Instant Access Saver offers one of the best interest rates available on the market.
-
One million pensioners are now higher rate taxpayers and it's not just income tax to worry aboutRising state pension payments have pushed more people into higher tax brackets but this could also affect other areas of your finances
