Xchanging's woes leave the Boat Race in choppy waters

The Oxford and Cambridge Boat Race looked set to need a new sponsor today as it emerged Xchanging, which has backed it for the past six years, was in turmoil.

It also warned of massive writedowns for last year and issued a profits warning for 2011.

Xchanging's sponsorship is due to expire next year.

Chief executive David Andrews left although he said he will continue as a "senior adviser".

The firm said it was searching for a replacement.

Xchanging admitted its 2010 results will include a goodwill charge of £100 million plus a £12 million impairment charge.

It warned the absence of contract settlements and lower consulting income meant operating profits for 2011 would be below the lowest end of analysts' expectations, ranging from £55.5 million to £80.2 million.

The company cancelled its dividend.

A Boat Race spokesman said: "The Xchanging Boat Race will take place on March 26 as planned."