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Xansa - To ditch its North American operations

February 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

UK companies have transferred more than 50,000 jobs to low cost India over the last two years and the trend is accelerating. This, then, continues to be our case for buying Xansa. Lack of space meant we omitted an update on Xansa last month but there wasn't too much new information in its interim results to 31 October. Revenue was £226m, down 3% on H1 2003 but up 2% on H2 2003. Operating profit was down to £14.5m compared with the same period last year but was up 11% on the previous six months. Pretax profit fell 7% to £13.8m before exceptional costs of £20.9m. The previously flagged exceptionals comprised a £13m cash cost of settling a dispute with a former customer and also reorganisation costs of & ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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