BAE terminates Xchanging deal

Outsourcing company Xchanging said yesterday it had lost a lucrative human resources contract with BAE Systems.

“BAE Systems has informed Xchanging HR Services that they do not intend to renew the existing HR outsourcing contract when it expires at the end of 2012,” Xchanging said.

The firm’s current contract with BAE Systems contributes revenue of about £18m per year at a five per cent profit margin.

Shares in Xchanging closed down 8.2 per cent at 64.5p yesterday, valuing the business at £168m.