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.

Nice confirmation of overdone price fall. Finance director today buys 20k at 188p, and now holds 1.4m shares...........

Times had a write up on XCH today with a buy rating, I will find the article and post it here later.

Times write up below.............

As sponsor of the Oxford and Cambridge Boat Race, March is usually the month when Xchanging grabs greatest attention. But the outsourcing specialist stood out for all the wrong reasons yesterday, when full-year figures pulled its shares down nearly 7 per cent to a new postfloat low.

The problem lay not with the numbers themselves operating profits up 29 per cent, with sales ahead 19 per cent but with a lack of new business. Xchanging has set out its stall to secure a big-ticket contract every 12 to 18 months. Yet rather than announcing a successor to its November 2007 tie-up with Allianz, of Germany, the company said that deals were taking longer to conclude.

That deferment is not disastrous. Even without such a signing, Xchanging is generating enough sales to meet current-year forecasts. For example, changes to withholding tax in Germany has brought in additional work in financial services and 84 per cent of 2009 group sales are already assured. More important, the cost-saving impetus behind outsourcing should be sharpened by recession and increased regulation.

Xchanging suffers from a complex structure it creates joint ventures for each client win and a short history on the stock market. Even so, 189p, or 11 times current-year earnings, seems too steep a discount to Capita, given a strong cash position and the dynamics that they share. Buy.

RNS released today = Fidelity Limited brought 250.000 on 2nd March, and now hold 28,605,047 or 13.03%.

Must have liked the Final results on Monday.

Another 1 million buy today at 200p, should be rns soon, small investors took advantage to sell but the sp increased and has stayed firm. 5% up on a down day is a good sign, there could still be a large buyer mopping up the small sell transactions which would explain why the sp has held firm.

Sold out yesterday for quick profit, but will keep watching for another entry. I hope it develops a good trading range, between 180 - 220 would be nice.

Press Release

15/04/2010

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
Soci Gale. 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 31 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

Meeta Thareja Tel: +44 (0)20 7780 5374


meeta.thareja@xchanging.com

Broker BUY Upgrade.......

SP Target 280p 36.5% upside.

Xchanging Buy 280 36.5% Canaccord Adams

Stock on a very low P/E of just over 10 going into 2011 way undervalued compared to peers and overs plenty of value imho.

Brokers in the main also like it.....

Xchanging PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
19-04-10 HOLD 70.40 17.50 3.50 80.70 19.50 3.50

KBC Peel Hunt Ltd
16-04-10 BUY 68.44 17.21 3.00 76.05 18.74 4.00

Shore Capital
09-04-10 HOLD 68.00 17.40 3.40 78.00 20.00 3.90

Seymour Pierce
01-04-10 BUY 73.20 18.80 2.90 83.40 21.80 3.00

Canaccord Adams
02-03-10 BUY 67.70 17.20 76.00 19.30

Numis Securities Ltd
11-02-10 ADD 68.70 17.00 3.60

2010 2011
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 68.67 17.28 3.20 77.74 19.61 3.80

1 Month Change -0.20 -0.02 0.00 -2.62 -0.23 0.00
3 Month Change -6.93 0.03 -0.27 -3.51 -0.67 0.69


GROWTH
2009 (A) 2010 (E) 2011 (E)

Norm. EPS 16.75% 12.16% 13.48%
DPS 25.00% 28.00% 18.75%

INVESTMENT RATIOS

2009 (A) 2010 (E) 2011 (E)

EBITDA 85.45m 85.31m 92.31m

EBIT 48.90m 75.01m 82.10m

Dividend Yield 1.23% 1.57% 1.87%

Dividend Cover 6.16x 5.40x 5.16x

PER 13.21x 11.78x 10.38x

PEG 0.79f 0.97f 0.77f

Net Asset Value PS -25.58p 123.90p 146.40p

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