British outsourcing firm Xchanging reported solid trading since January amid an overhaul of its business and said it expected revenue improvements in the second-half of the year.

Xchanging, which is undergoing cost cutting measures and a review of its troubled Cambridge IT business, said on Monday trading in its seasonally quieter first quarter had been solid.

The company, which runs back-office activities such as invoice processing and paying staff, said its financial services and insurance businesses, excluding its U.S. operation, had performed slightly ahead of its expectations.

"Since announcing our four part action plan at the time of our preliminary results we have been very active and have made good progress," acting Chief Executive and Chief Financial Officer Ken Lever said in a statement.