Innovation expects pretax profit to meet mkt view

LONDON, UK: British software firm Innovation Group Plc said it expected its full-year adjusted pretax profit to be in line with market expectations aided by contract wins.

The company, which provides outsourcing services to the insurance industry, said net cash of more than 10 million pounds ($15.8 million) would be substantially ahead of market expectations.

Innovation reiterated that claims volumes in all territories during the year ended Sept. 30 were significantly reduced due to lower economic activity, leading to slower-than-anticipated growth in its U.S. BPO (business process outsourcing) business.

The company said its new BPO platform, Enterprise, was on budget and on schedule to go live in the UK, France and Spain in the first quarter.

Last week, the company had said it rejected an unsolicited approach from EXL Service Holdings Inc regarding a possible cash offer of 16 pence per share.

Innovation shares closed at 13.25 pence on Friday on the London Stock Exchange.