Xchanging Share Discussion Threads

[typo56] 09/2/2011 09:01

0824 GMT (Dow Jones) Shore Capital downgrades Xchanging (XCH.LN) to hold from buy following the company's trading update which contains a material warning on profits for FY '11 earnings. Additionally, the company's CEO David Andrews steps down from the board with immediate effect. Says clear that pressures from contract terminations, consulting and on outsourcing margins continue. Adds that further restructuring costs are also muted in the statement. "We see little prospect of any bid interest in Xchanging before stability becomes evident, though as a platform for long term growth, the company may ultimately have attractions," adds Shore.

[typo56] 09/2/2011 09:00

lol, await the "Can I put this in my ISA?"

[london calling] 09/2/2011 08:52

a fairly comprehensive why are profits will be down statement. only thing missing was the kitchen sink....

[hvs] 09/2/2011 08:48

lol !!!!

Where do they spring up from ?

[t 34] 09/2/2011 08:46

why this drop today;new shares issue??

[hvs] 09/2/2011 08:41

Anyone know who CATISA is ? and why They are paying near £ 5 mill ?

[hvs] 09/2/2011 08:28

lol !!!!

lol !!!!

David has made a significant and invaluable contribution to the growth and success of Xchanging since he founded the business in 1999 and led the successful flotation of the company in 2007.

He is getting A BONUS for JOB very well done.

[hvs] 09/2/2011 08:14

Anyone know why they are getting money from CATISa ??

Is it really very fishy ? Who is CATISA ???

[golfer25] 09/2/2011 08:12

are the audiitors going to review working capital ?

[envirovision] 09/2/2011 08:11

so thats 2 profits warnings then, 1 left to go if it can make it that far

[golfer25] 09/2/2011 08:08

didnt the geezer lend his son £3m to buy this dogdirt?

[envirovision] 09/2/2011 07:49

100m for cambridge but can enough be done to stave off bankrupcy?

[rathkum] 09/2/2011 07:45

This is gonna crash on opening

[typo56] 09/2/2011 07:34

Well I never!

[simon gordon] 09/2/2011 07:06

Massive profit warning for 2011 and CEO & Founder leaving.

Year ended 31 December 2011

In finalising the results for 2010 and assessing the outlook, it is now anticipated that revenue in 2011 will be within the current range of analysts' 2011 estimatesIV. It is anticipated that 2011 underlying operating profit will be below the lower end of the current range of analysts' estimates for 2011 of GBP55.5 million to GBP80.2 million.

The expected reduction in operating profit in 2011 compared to 2010 will be primarily due to the absence of the contract settlements and consulting income which benefited 2010 results, the reduction in profits of the order of GBP2.0 million as a result of a contract termination, a deterioration of performance in the US Claims business of around GBP4.0 million and a higher level of business development investment in the Americas of around GBP4.0 million. In addition, in the Financial Services business margins will be challenged by the pressure for further price discounts.

Actions are being taken to mitigate the impact on operating profits in 2011 which include restructuring and cost reduction initiatives. Further details of these actions together with the audited financial information and further comments about the outlook for the 2011 financial year will be made available, as planned, with the Preliminary Results' announcement on 1 March 2011.

Dividend

In these circumstances the Board has decided not to pay a dividend for 2010. Going forward the Board will keep payment of a dividend under review.

Board Change

Xchanging plc is announcing today that David Andrews has decided to step down from the Board and from the role of Chief Executive Officer with immediate effect. David has agreed to take on a new role as Senior Adviser to the Chairman to support the company's business development initiatives. David has made a significant and invaluable contribution to the growth and success of Xchanging since he founded the business in 1999 and led the successful flotation of the company in 2007.

[hvs] 03/2/2011 12:50

Not looking good is it ?

[hvs] 31/1/2011 13:43

Is it hitting the FAN ?

[hvs] 11/1/2011 20:51

Sub £ looks very likely now.

[simon gordon] 11/1/2011 20:38

HSBC - 6/12/10:

Why not warn? Cambridge Solutions' (Xchanging's Indian acquisition) sales declined 7% in Q3 and the business incurred losses of INR40m (GBP1m) (source: Cambridge Solutions stock exchange filings). There was no direct mention of such a precipitous profit decline in Xchanging's Q3 IMS release last month or the investor day later in the month. At the Q3 update, management maintained that results were in line with consensus expectations. We worry if the trends at Cambridge Solutions continue, it may result in a profit warning.

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I have read that if XCH do a goodwill writedown on Cambridge it will trigger a breach of banking terms. Not a disaster but the price of borrowing will rise.

That Cambridge deal has wrecked the share price....

[hvs] 11/1/2011 16:06

lol !!!

lol !!!

Trust UBS , U must be JOKING.