Xansa shares fall further on full year results

Xansa shares fall further on full year results

Shares in British computer services firm Xansa have tumbled as the company reports widening full-year net losses and no sign of any imminent recovery in customers' IT spending.

Shares in Xansa reached their lowest level for five years, droppping to 11% to £0.93 as the company turned in net losses for the year to end-April of £528.1 million. The results include £497 million pounds to write down the value of acquisitions OSI Group Holdings, Druid Group, and Synergy International Consulting. Operating profit was up 9% to £49.1m as revenues rose 18% to £515.1 million.

Despite big wins at Barclays and BT, Xansa has suffered badly from the IT slowdown and has issued two profit warnings already this year. The shares took a further knock last week when the company reported the early termination of a blue chip IT joint venture contract with HBOS.

Introducing the results, executive chairman Hilary Cropper, warns: "We remain cautious about the economic environment and do not expect a significant upturn in IT spending before the start of calendar 2003 at the earliest."

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