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.
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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.
However, 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 challenging economic conditions faced by our customers in the
UK.”
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.”
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By GlobalDataXerox 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.
