Interim results for the six months ended 31 October 2005
01 December 2005
Xansa, the outsourcing and technology company, is pleased to announce its results for the six months ended 31 October 2005.
Business Highlights
- Group margins* increased from 5.6% to 7.2%
- 31% growth in UK public sector work:
- New client wins: Ofcom, The Metropolitan Police, Jobcentre and Foreign and Commonwealth Office, Peterborough City Council and Cornwall County Council
- NHS Joint Venture progressing ahead of expectations, serving 100 trusts and now providing payroll services
- New wins and extensions in the private sector: National Grid, Lloyds TSB, Boots, British Gas and Renault Formula 1
- India workforce increased by over 20% since 30 April 2005
- Order bank steady at £450m (H1 2005: £451m)
* before share based payments
Financial Performance.
- Turnover declined to £175.9 million (H1 2005: £189.5 million), as increasing volumes of work are delivered from India.
- Operating profit increased to £11.1 million (H1 2005: £9.2 million)
- Operating profit before share based payments and share of Joint Venture results increased to £14.3m (H1 2005: £10.7m)
- Profit before tax increased to £7.8 million (H1 2005: £6.7 million)
- Diluted earnings per share increased to 1.90 pence (H1 2005: 1.81 pence)
- Adjusted diluted earnings per share increased to 2.31 pence (H1 2005: 2.21 pence)
- Dividend per share maintained at 1.08 pence (H1 2005: 1.08 pence)
Bill Alexander, Chairman commented:
"The company has delivered a solid performance in line with the objectives set out at the start of the year. This has been achieved against a backdrop of planned transition as our India business becomes increasingly important to our existing and potential clients. We have continued to drive growth in the public sector and our joint venture with the Department of Health is showing good progress."
Commenting on the results, Alistair Cox, Chief Executive said:
We are part-way through the shift in our business model. Progress is very encouraging and margins have continued to improve. Additionally, our earlier investments are beginning to yield benefits and we expect to see revenue growth in the second half. Our objective of creating a high margin and growing business is on track.
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