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Xansa - One third of workforce now offshore in India

July 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.

Alastair Cox's first task since he became chief executive has been to pull Xansa out of its  subscale businesses in the US, Europe and Asia in order to focus on building the UK business and its outsourcing operations in India.  But the UK side has also had to contend with the loss of the FBS contract with HBOS, which came to an end last December and had caused analysts to question the  contract's disproportionately high contribution to Xansa's bottom line and the comparatively poor contribution from the rest of Xansa's UK business.Overall, sales were down by 8% to £419m for the year to 30 April and pretax profit was down 12% to  £24.4m before exceptional costs flagged at the interim stage. Earnings ...

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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.

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