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.

Print Sponsor

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific