Xchanging profits plummet

Pre-tax profits at back office services group Xchanging plummeted 95 per cent in the first half of 2011. The sponsor of the Oxford-Cambridge boat race said that in the six months to the end of June, profits before taxation fell to £812,000. The company parted ways with its chief executive David Andrews and cancelled its 2010 dividend in February after surprising markets with a profit warning. The firm is now keen to cut costs by substantially paring the number of senior managers in the UK, cutting US overheads and closing its London West End head office and relocating to Leadenhall.