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Xansa PLC (XAN)

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Tuesday 06 May, 2003

Xansa PLC

Pre close Update

Xansa PLC
06 May 2003

6 May 2003

                                Pre-Close Update

             Full year outturn in line with management expectations

Xansa, the international business process and IT services company, is pleased to
confirm that the outturn for the full year ended 30 April 2003 remains in line
with management expectations.

Since the announcement of our Interim results, we have made significant progress
in our streamlining programme, which covered direct and indirect costs, property
and infrastructure. The key strands of the programme are now complete. The
management team has successfully implemented a new organisational structure
throughout the company. As a result, we believe that we have created a sharper
organisation, fitter to deal with the market challenges and well positioned for

Through continued rigorous cash management and the efficient implementation of
the streamlining programme, the company's overall cash position and annualised
savings are slightly ahead of our original plan, with exceptional charges as

Since the Interim results, we have continued to grow our Business Processing
Outsourcing (BPO) division, including the recently announced accounting and
finance contract with mmO2. This further strengthens our already profitable BPO
business which, along with IT outsourcing and supported by our Indian delivery
channel, continues to position the company well in markets which remain
challenging both in the UK and internationally.

Commenting on today's announcement, Alistair Cox, Chief Executive of Xansa said,

"As we said at the December Interim results, we are not expecting any marked
upturn in demand during our financial year 2003/04. We are addressing this
environment through our streamlining programme while continuing to position the
company for future growth by investing in such areas as India and BPO.

I am pleased that we also announced today the signing of the landmark IT
outsourcing contract with the Royal Mail Group, as part of the Prism Alliance.
This is a terrific result for us all."

The preliminary results for the year ended 30 April 2003 will be announced on 25
June 2003.


Steve Stratton                         Giles Sanderson, James Melville-Ross
Investor Relations Director, Xansa     Financial Dynamics
Tel : + 44 (0) 8702 416181             Tel: +44 (0) 20 7831 3113
Email : [email protected]

About Xansa

Xansa ( is an international business process and IT services
company creating and delivering process and technology solutions that
significantly improve its clients' business performance. Through strong
relationships, commercial innovation and its integrated Indian delivery
capability, Xansa drives real and long-term cost reductions, performance
improvements and new ways of working tailored to each client. Its services are
Business and Technology Consulting, IT Implementation, IT Outsourcing and
Business Process Outsourcing. Xansa is established in the UK, North America,
Continental Europe and Asia Pacific with three process and technology centres
across India. Xansa is listed on the London Stock Exchange (XAN.L).

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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