Xchanging buoyed by refinancing deal
Xchanging has a four-year financing deal and new CEO Ken Lever said it is making progress after accusations of "aggressive" accounting
XCHANGING HAS SECURED refinancing and a £75m revolving credit facility for a four-year term, after a bumpy 12 months that saw accusations of “aggressive accounting” and Ken Lever take up the role of CFO, before being made CEO less than a year later.
Founder David Andrews stepped down in February, leaving Accounting Standards Board member Lever to deal with the accusations of questionable accounting, which he called” very unfair [and] extremely misleading”.
The business process and technology services provider has been in discussion with its banks, including Barclays and RBS, and has now signed a new facilities agreement.
Lever took up the CEO role in early July, after appointing David Bauernfeind as his replacement CFO. Speaking of the refinancing, he said: “This is an important cornerstone in the foundations of our transition programme under our four-part action plan. It ensures the company has its funding in place to support our future plans.”
The company’s half-year results came out today, showing reported revenue was £329.5m, down from £333.8m 12 months ago. Shares plummeted almost 50% at the height of turmoil, and Lever called it a “year of transition”, saying “significant progress” has been made on the four-part action plan.
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