Xchanging shares dive after profits warning


Shares in outsourcing firm Xchanging have halved to a record low following a profits warning and the departure of its chief executive.

The firm, which sponsors the Oxford and Cambridge Boat Race, said David Andrew would stand down immediately.

It also said profits this year would less than £55.5m - the lower end of analysts' forecasts.

Xchanging, which provides IT services for BAE Systems, blamed the end of some contracts and tighter profit margins.

Its 2010 full-year results will be released next month.

Xchanging warned that they would also include a £100m reduction in the goodwill value of its businesses, primarily Cambridge Solutions, which it bought in 2008.

Analysts also expressed concern about how the business was being run.

"Xchanging's trading update demonstrates again the opaqueness of the business and the disastrous acquisition of Cambridge," said Numis analyst Mike Murphy.

The shares closed down 52% at 56.5 pence.

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