Xansa shares crash on profits warning
Business and IT outsourcing company, Xansa, which provides accounting and financial services work to BT, has seen its share price tumble after it warned profits for October would be lower than expected.
Link: Xansa to take on accounting work at BT
Xansa stock, valued at 54p at the beginning of Tuesday, was last trading at 35.5p – a drop of more than 50%.
The collapse followed a profits warning issued earlier on Tuesday. In a statement to the London Stock Exchange Xansa said it expected first half results to be ‘slightly below recent expectations’.
‘There will, however, be a more marked impact for the full year particularly due to the timing of contract decisions. Second half performance is expected to be broadly flat compared to that of the first half,’ the company said.
Xansa claimed this was due to problems caused by client delays on some projects which would result in at least two projects not beginning until the end of the financial year.
Xansa took on the BT contract in October 2001 with 500 BT staff transferring across. At the time its share price stood at 238p.