Released final results yesterday and the price fell 7% to below 190p, unfairly in my view. Profits and EPS were inline with expectations, but market was dissappointed by lack of major new contract announcements. They are growing at over 20% a year and have a forward PE of 11 for 2009, the CEO says in yesterdays Finals that XCH should benefit from recession, due to banks and financials costsaving by outsourcing systems to XCH.

http://www.euroinvestor.co.uk/news/story.aspx?id=10997733

15/04/2010 07:01:00XCHANGING WINS CONTRACT WITH VERITAS INVESTMENT TRUST GmbHPress Release

XCHANGING WINS CONTRACT WITH VERITAS INVESTMENT TRUST GmbH

Further expands Fondsdepot Bank platform as it takes over the processing of

approximately 100,000 investment accounts for VERITAS INVESTMENT TRUST GmbH.

FRANKFURT, 15 April 2010 - Fondsdepot Bank, an Enterprise Partnership of

Xchanging and Allianz Global Investors, has been chosen by VERITAS INVESTMENT

TRUST GmbH (VERITAS) for the administration of approximately 100,000 investment

accounts. The migration of the investment accounts from VERITAS' current

platform onto Fondsdepot Bank's IT platform is expected to be completed by 15

August 2010.

VERITAS is an investment company founded in 1991, and was formerly co-owned by

SociGale. VERITAS' products are predominantly stock-oriented retail

funds and funds of funds, including A2A fund of funds and the innovative ETF

funds of funds. These are distributed via 280 distribution partners in Germany

and Austria.

In January 2010, Xchanging was chosen by SEB Bank and SEB Asset Management for

the administration of their B2B investment accounts business. This transaction

will make Xchanging the largest independent investment account processing

platform in Germany. Xchanging continues to lead the consolidation of the

mid-market investment account processing and will have approximately 1.6 million

investment accounts and EUR31 billion assets under administration by the end of

2010.

Markus Kaiser, Managing Director of VERITAS INVESTMENT TRUST GmbH stated,

"Xchanging is our processor of choice for the administration of our investment

accounts. Xchanging's track record of processing quality perfectly matches the

high quality of our award-winning funds portfolio. Focussing on our core

business as well as process and cost efficiency is of critical importance to

us."

David Andrews, CEO Xchanging said, "I am delighted to welcome VERITAS as another

highly valued customer to our fast-growing investment accounting Enterprise

Partnership with Allianz".

Matthias Sohler, Head of Xchanging Continental Europe and Managing Director of

Fondsdepot Bank added, "Xchanging continues to be a key player in the

consolidation of the German investment account processing market. The conclusion

of another important deal confirms that we are on the right track. As we are not

aligned to a particular bank or organisation but only to the interests of our

customers, an increasing number of companies are transferring their business

processing to us. Our position as an independent platform provider is paying

dividends and we are well positioned for growth in Germany and Europe more

broadly."

Fondsdepot Bank

Fondsdepot Bank is an Enterprise Partnership of Xchanging and Allianz Global

Investors. Since its launch in 2007, the two partners have successfully been

targeting additional investment account administration business for the joint

platform.

The first milestone in the growth of this business was the acquisition of the

Munich-based FondsServiceBank (FSB), previously DAB bank AG, in May 2009. As

part of the deal, Fondsdepot Bank had the potential to take over all

distribution partner contracts and approximately 460,000 customer contracts

relating to the safekeeping and administration of investment fund accounts. The

migration of the accounts onto Fondsdepot Bank's platform was successfully

completed on time and on budget in April 2010.

The second milestone was the take-over of B2B investment account business

administration for SEB Bank and SEB Asset Management announced at the beginning

of this year. This transaction with VERITAS represents another significant

milestone in the growth of this platform.

Fondsdepot Bank serves approximately 80 large distribution partners such as

DVAG, BCA, Fondsnet, Argentos as well as distribution companies of large

insurers and banks. Its customers also include a number of well-known investment

companies such as Allianz Global Investors, MEAG Munich ERGO Kapitalanlage and

Pioneer Investments.

---END---

For further information, please contact:

Xchanging

Goldfinger, XCH is a good buy at 123p now. I just bought.

Tipped in The Times today. Just dipped in at 97.4p
Any thought on this company?

Times share tips

Good luck, privatesharedealer

Xchanging pre-tax profits drop 95%

Xchangings efforts to recover from a disastrous start to 2011 have taken a further setback after interim pre-tax profit plunged at the troubled back-office services group, missing analysts forecasts.

The former FTSE 250 company is struggling to recover from a profits warnings in February, when the outsourcing group said it would refine the way that it accounted for contracts, prompting David Andrews, founder and chief executive, to stand aside.

That move spooked investors in the group, which handles tasks such as procurement and customer services for large companies, and more than halved the groups market capitalisation in a single day.

The sombre news continued on Monday, when Xchanging reported a 95 per cent decline in pre-tax profits from 19.5m to 812,000 in the six months to June 30. Diluted earnings per share fell from 4.5p to 2.6p and there was no dividend.

Xchanging is in the midst of a cost-cutting programme that includes axing about 15 per cent of its senior management, closing the groups London West End head office and relocating to Leadenhall, and cutting overheads in the US.

This is a year of transition for Xchanging as we address areas of weakness in our business and put in place a structure and strategy for renewed growth. To date we have made good progress, the company said.

We have tackled the most serious immediate problems threatening our business, taken action to reduce costs and secured our funding. The business has been stabilised and the cornerstones of our transition plan are now in place.

The group, whose operations include processing insurance claims for Lloyds of London, said it had agreed a four-year 75m revolving credit facility, as well as a 20m loan, priced at 325 basis points above Libor.

Xchanging, which sponsors the annual boat race between the universities of Oxford and Cambridge, has also signed a 3-year deal with L'Orl, the cosmetics and beauty products company, to provide indirect procurement across the UK, France, Germany, Italy and Spain.

Analysts at Panmure Gordon said that Xchanging had made some progress during the first half, but noted that the figures were below their expectations. We continue to believe there are better ways to play the sub-sector and believe execution risk along the long road to recovery remains high. We therefore maintain a sell recommendation.

Analysts at Liberum Capital called the figures disappointing but reiterated their buy recommendation on the stock, with a 110p target price, on Xchangings turnround plan.

Whoops. Classic case of "do your own research before investing on the back of a newspaper tip"!

But Liberum Capital have reiterated their "buy" with a 110p target which would give a 13% on my buy price so we'll see...

Not heading towards 110 at the moment. Slipsliding the other way - with no support between here and the 50p it fell to in February :-O