Xchanging shares hit
Shares in UK-based BPO provider Xchanging took a hefty hit this week after the company cautioned that full-year revenues will be “slightly lower” than previously expected. Shares in Xchanging fell 12.5% to 175p on Tuesday after a statement forecasting a 4-7% increase in sales for the full year – “brokers had previously expected sales to rise by as much as ten per cent during the period,” according to the Financial Times.
“There’s caution across industries and across geographies… It’s pretty much across the patch,” Xchanging CEO David Andrews told the FT.
The company now intends to cut costs – despite a significant cost-reduction program already in place which has seen several thousand jobs offshored to India – in order to hit previous EBIT forecasts of approximately £74m. However, Xchanging appears to be undeterred from carrying out its existing expansion strategy: the company has announced the acquisition of 51% of Italian entity Kedrios, a subsidiary of SIA-SSB, providing financial services to the Italian market.
“This Enterprise Partnership [with SIA-SSB] marks a major step forward in our European growth strategy. Italy will be our tenth country of operation,” said Andrews.