Highlights of the period.
Key points:
- Continuing track record of strong growth (revenues up 18% over H1 2006, which is virtually all organic)
- Adjusted operating profit(1) attributable to Xchanging increased 25% to £10.6m (H1 2006: £8.5m)
- Adjusted operating profit(1) margin attributable to Xchanging increased to 4.8% (H1 2006: 4.5%)
- Strong operating cash flow with net cash flow from operations increasing by 27% in the period to £22.9m (H1 2006: £18.1m)
- Completed successful IPO raising £75m of primary equity capital
- Bought out minority stakes in HR and procurement businesses for £57m
David Andrews, CEO of Xchanging, commented: "We are pleased with the maiden set of interim results we report today. Over the past six months Xchanging has continued to demonstrate strong growth by winning contracts with new customers and successfully expanding our existing relationships. Our focus on standardisation is resulting in superior quality of service delivery and productivity improvement.
"Looking ahead, the business process outsourcing market remains active and our existing businesses are well placed to deliver organic growth. In addition, we are well positioned to add major new business through our unique partnering approach. We will continue to seek infill acquisition opportunities to complement and strengthen our proposition and we remain confident in the outlook for the full financial year."
(1) Statutory operating profit (post exceptional IPO items) was £7.6m. Adjusted operating profit excludes exceptional IPO items and certain non cash items, which comprise amortisation of intangible assets previously unrecognised by acquired entities and share based payment charges of £0.2m (H1 2006: £0.2m).
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