XCH.L Regulatory News (XCH)

Xchanging plc

Interim Management Statement

Xchanging plc ('Xchanging'), the business process, procurement and technology services provider, today issues its Interim Management Statement covering the period from 1 July 2013 to date.

Current Trading

During the period, trading has been slightly better than our expectations. We continued to win business in each of our industry sectors and service lines, with higher margins for the group overall.

Our Procurement Services business has won a number of new contracts, including with Diageo and Severn Trent, and an extension to our existing contract with L'Oréal. These contract wins are helping to build critical mass in the significant US market which, together with the benefits of restructuring of the European cost base, is expected to start to improve the financial performance of this business as we move into the next financial year.

The level of interest in the Xuber insurance software products remains strong with a further contract signed last week, with Everest Re, our first competitive win for Xuber in the USA. We continue to invest in extending the Xuber functionality to address additional segments of the insurance market.

Cash flow remains strong and the business is in a healthy financial position with a strong balance sheet, enabling Xchanging to invest for growth.

Change Programme

We have made further good progress with our Change Programme to reduce costs and improve the productivity of our back office functions. We are developing a shared services centre in India and are well advanced with the streamlining of our group-wide HR and finance functions, and the simplification and standardisation of IT systems.

Strategic Development

As previously announced in September, we acquired the e-Sourcing technology provider MarketMaker4 ("MM4"). MM4 complements our existing Procurement Services offering and brings to Xchanging a strong customer base. Since acquisition, MM4 has won a further 8 new customers.

Also in September, we completed the sale of our shareholding in Xchanging Transaction Bank to Deutsche Bank.

Joint Corporate Brokers

Xchanging also announces today the appointment of Investec Bank plc and Liberum Capital Limited as joint corporate brokers, with immediate effect.

Investor Seminar

Xchanging is to hold a half day Investor Seminar in London on the morning of Friday 15 November 2013. The theme of the seminar is 'Technology-enablement'. Institutional Investors who would like to attend should contact Sharan Huliat (sharan.huliat@xchanging.com). Materials will be posted on Xchanging's website after the event.

Full Year Results

Xchanging intends to announce its full year 2013 results on 27 February 2014.

Enquiries

David Bauernfeind, Chief Financial Officer

Alexandra Hockenhull, Director of Corporate Communications

and Investor Relations

Brian Hudspith

Emma Burdett

Dan Yea

www.xchanging.com

Cautionary Statement: 

This announcement is based on information from unaudited management accounts and contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Xchanging's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are: increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approval or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.