UK outsourcer confounds IT gloom

Twenty-four hours after services giant Cap Gemini Ernst & Young, issued a gloomy profits warning, a much small competitor has turned convention on its head by issuing startlingly good results.

Xansa, a UK consultancy and outsourcing group formerly known as F1 Group, released year-end figures showing profits up 57 per cent. Sales were up 41 per cent to £424.7m.

According to Xansa's executive chairman, Hilary Cropper, the positive numbers were due in part to the loyalty of existing customers. "Half of our customers have been spending with us for more than five years," she told the FT.

The strong results pushed shares in Xansa up 15p.