Page last updated at 13:10 GMT, Thursday, 21 May 2009 14:10 UK

Cable & Wireless sees profit slip

Cable & Wireless headquarters
Cable & Wireless was upbeat about its growth prospects

Telecoms firm Cable & Wireless (C&W) saw full-year profits fall by 13% after it took a hit on the costs of a revamp and integrating a recent acquisition.

It saw pre-tax profit of £233m in the year to the end of March, as it absorbed £189m of exceptional losses.

Stripping out those one-off losses, earnings rose by 37% to £422m.

Shares in Cable & Wireless fell by 9% as analysts said the firm's forecasts for 2009/10 were not as strong as had been hoped.

But C&W, which upped its full-year dividend by 13%, was upbeat about its growth prospects.

"We're well aware that the recession provides a degree of uncertainty but our current view is that we have a robust set of plans that will allow us to progress further in 2009/10," said C&W chairman Richard Lapthorne in a statement.

He added the firm expected "a substantial increase in cash generation" and pointed to earnings of over £1bn for the year ahead.

C&W said its results included six months of earnings from Thus Group, which it bought in October last year, and it also saw a positive foreign currency impact on its unit which includes businesses in the Caribbean, Panama and Macau.

The exceptional charges it faced included restructuring costs related to a revamp of its London office, where it cut more than a quarter of its workers.

Its 'One Caribbean' programme and the cost of integrating Thus into its existing business also ate into profits.



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