UPDATE 2-Xchanging sees FY revenue below current view

* Pressure on revenue offset by growth, contract wins

* Says cost-control steps to ensure oper profit in line

* Sees business growth continuing in Jan-April '09

* Stocks fall as low as 12.5 pct (Adds broker comment, share movement)

May 19 (Reuters) - Xchanging Plc (XCH.L), a British business processing services firm, warned that full-year revenue would be lower than expected, but said based on trading in the first four months, it still expected "significant growth".

"We have not been immune to market pressures, particularly in respect to transaction volumes and asset values in the banking sector, and claims volumes in the U.S.," the company said in a statement.

Xchanging said IT revenues had been affected as customers had deferred discretionary spend but the impact of these had been partially offset by stronger-than-expected growth elsewhere in the group, including several contract wins.

The company's stock was one of the top losers on the FTSE 350 .FTNMX2790, plunging 12.5 percent to 180.25 pence on the London Stock Exchange, while the index was up 0.3 percent.

Brokerage UBS, which maintains a "buy" rating on the stock with a price target of 280 pence, said it expected Xchanging's shares to weaken on the back of lower revenue forecasts.

The company, which recently agreed with Germany's DAB bank AG (DRNG.DE) to acquire the bank's investment funds administration business, said it won several new contracts in the first four months of 2009.

Xchanging, which gets about 70 percent of its turnover from Britain, said it achieved more than 13 contract renewals including those of Wal-Mart (WMT.N), American Express (AXP.N) and SPX (SPW.N) in the United States, with DHL in Europe and the Singapore government.

Xchanging said it had also concluded talks "on the future shape for claims processing with the London Insurance market".

The company said its cost control measures would ensure operating profits could be delivered in line with expectations.

Four analysts on average were expecting the company to post a pretax profit before exceptional items of 59.8 million pounds, while six analysts on average were looking for revenue of 798 million pounds for 2009, according to Reuters Estimates.

At 1358 GMT, Xchanging shares were down 11.5 percent at 182.25 pence on the London Stock Exchange. They earlier touched a low of 180.25 pence. (Reporting by Austin Lobo in Bangalore; Editing by Gopakumar Warrier)