Operating profit of
£25.5m. Claire Hack reports
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Xerox Finance grew operating profit
by 27% to £25.5m (€29.7m), on turnover of £294m, in the year to
end-December 2009.
Turnover growth was 2.6% at the
financing arm of the printer and copier manufacturer, its
non-consolidated results showed.
Gross margin increased during the
year thanks to “the signing of a number of additional contracts and
a change in product mix”, the accounts said.
Revenue growth was attributed to a
rise in service and facilities management income.
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By GlobalDataHowever, profit after tax dropped
by 35% to £4.1m, due to higher tax payments. Interest payable and
other charges also went up.
The report stated: “Finance leases
have declined to £253.6m [2008, £278.1m] mainly due to the
reduction in new business and the increase in bad debt write-offs
resulting from the tough economic conditions faced by our UK
customers.”
This year, Xerox Finance introduced
a European infrastructure project known as “Average to Benchmark”,
or A2B, aimed at building a common set of processes and an
integrated database environment for all locations and businesses
across Europe.
Xerox Finance also continued its
drive to grow turnover through services and outsourcing for major
accounts, and high-speed digital printing solutions for commercial
printers and document-intensive customers.
The company has predicted that 2010 will bring further bad debt
and reductions in new business finance leases. But directors
remained confident that the group would be in a strong position to
reap the benefits when economic conditions improve.
