| Updated:
Xchanging profits slump after transition year for outsourcer
OUTSOURCING firm Xchanging said yesterday it had seen an increase in potential contracts in the first weeks of 2012, as a restructuring implemented last year began to pay off.
Xchanging posted an expected 23 per cent fall in adjusted operating profit to £43.2m but aims to return to growth next year.
Cost cuts at the firm, which runs back-office activities such as invoice processing and staff payments, included shedding its loss-making US Cambridge workers’ compensation operation in June, reshaping management and seeking smaller, more regular contracts.
It recently signed a deal with cosmetics giant L’Oreal to manage €500m of indirect purchasing.
Investors responded positively with shares up 10 per cent at 94 pence.