'£60m black hole' in Xansa fund

TROUBLED technology group Xansa may have to make substantial increases in its pension contributions after the discovery of a black hole in its retirement fund. The company admitted earlier this year that the value of its final-salary pension scheme had dropped to below the Government's minimum funding rules. Contributions were increased recently in an effort to repair the damage to the fund, which is used to pay the retirement benefits of about 2,800 employees.

But pensions analysts say the fall in share prices this year could have increased the shortfall in the fund to about £60 million. This would mean substantially higher contributions from the company at a time when its profits were under unprecedented pressure.

Xansa is this week expected to report a 40% drop in interim profits. It has recently won a number of large outsourcing contracts for companies such as BT, Boots and Diageo, but chairman Hilary Cropper admits the past year has been traumatic for the group.

Before the latest rout in share prices, it boasted more women millionaires on its payroll than any other company.