Xchanging bags contract with CHEP
Selex Galileo does third party indirects deal
Xchanging assures investors of its financial health
Recruiter outsources indirect procurement
Income boost at Xchanging
2011 | Angeline Albert
outsourcing business Xchanging yesterday announced that CEO David Andrews has stepped down and it is also
forecasting lower-than-expected profits this year.
In a trading
update, Xchanging informed the London Stock Exchange that Andrews, who founded
the company in 1999, will take on a new role as senior adviser
to the chairman. Meanwhile, the company’s finance director Ken Lever has been
appointed as acting CEO until a new chief executive is found.
In the same update, the company
forecast lower profits for 2011 as a result of winning fewer new contracts. The
update said: “It is anticipated that 2011 underlying operating profit will be
below the lower end of the current range of analysts’ estimates for 2011 of
£55.5 million-£80.2 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.”
which employs 8,000 people, added that “actions are being taken
to mitigate the impact on operating profits in 2011 which include restructuring
and cost reduction initiatives”.
Xchanging chairman, Nigel Rich said: “2011 will be a year of transition for
Xchanging as we re-align the cost base and focus on revenue growth to deliver
sustainable profit for shareholders.”
will announce its full financial results for the year to 31 December 2010 on 1
Xchanging announced it had won two procurement outsourcing deals. Pallet and
container pooling services firm CHEP awarded a five-year contract to manage £75 million annual
spend. The deal includes
non-core categories and procure-to-pay activities. And defence electronics firm Selex Galileo outsourced indirect procurement to Xchanging in a three-year deal. Xchanging agreed to
manage an annual spend of about £17 million of the company’s UK operations.
The company sponsors the
Oxford and Cambridge boat race which has been renamed the Xchanging boat race.