LONDON (Alliance News) - Xchanging PLC Thursday reported a 4.7% increase in first-half pretax profit due to a gain on the exit of its previous premises more than offsetting lower revenue.
In a statement, the business processing, procurement and technology services provider said it made a GBP22.2 million pretax profit in the six months ended June 30, compared with GBP21.2 million in the corresponding period last year. The increase was driven by a GBP11.2 million gain on the exit of its Leadenhall Street premises.
Net revenue fell to GBP205.1 million from GBP270.7 million in the first year since Xchanging sold its 51% stake in Xchanging Transaction Bank GmbH to partner Deutsche Bank AG. The fall in net revenue also comes after Xchanging's contract with the London Metal Exchange was scaled back following its change of hands to Hong Kong Exchanges and Clearing Ltd at the end of 2012. Xchanging has been focusing on reducing its reliance on individual major customers.
Administrative expenses were up to GBP7.3 million from GBP6.7 million.
"We continue to focus on technology and technology-enabled offerings which differentiate Xchanging in the market. We remain in line with expectations and on track to deliver our stated objective of maintaining operating profit in line with last year," Chief Executive Ken Lever said in a statement.
"The acquisition of Agencyport Europe and agreed acquisition of Total Objects will provide a marginal additional contribution to our profitability in 2014 and, more significantly, further enhance our positioning for a resumption of growth in revenues and profits in 2015 following the divestments and business exits which arose in 2013," Lever added.
Xchanging does not pay an interim dividend.
Shares were Thursday quoted down 1.8% at 176.75 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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