Xchanging rises on update

Xchanging, the business process and technology services provider and integrator, rose more than 12% after reporting that its four part action plan has continued successfully in the second half of the year.

During the year the firm identified and delivered cost savings across the business, including the closure of its former head office in Hanover Square in June, and the subsequent surrender of the residual lease.

In a statement the firm said: "We have reviewed the business and are dealing with underperforming operations. We have also won significant new clients and improved the group's cash flow and funding structure.

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"We are on track to meet management's profit expectations for the year. Operating cashflow has continued to be ahead of our expectations and we now expect Xchanging to be in a net cash position at the year end."

The firm's Insurance and Financial Services sector is performing slightly ahead of management's expectations, although its Technology Services division has been disappointing during the year.

"Actions have been taken to reduce the cost base, to improve resource utilisation, to clarify the sales offering and to refocus the selling effort," the firm said.

The share price rose 12.86% to 79p by 15:47.

NR