Cable & Wireless has posted increased sales and
profits for the first six months.
Group revenue for the six months ended 30 September was up 5% to
£1.6bn, and profits before "exceptional items" was up 26% to
£357m.
The company
acquired smaller rival Thus last month, and it says it can make
savings from the combined businesses of £82m by 2011/2012.
The company has increased its share dividend on the back of the
results by 13% to 2.83p per share.
Richard Lapthorne, chairman of Cable & Wireless, said, "We
have seen no effect from the
broader economic slowdown in the first half. Indeed, we
continue to trade strongly and have raised our earning guidance for
the full year accordingly. We are not complacent but we are well
prepared - the businesses have well developed cost reduction plans
that will ensure that they will continue their progress."
However, because of the continued instability of the financial
markets, Lapthorne said Cable & Wireless would postpone any
planned breaking up of the group into separate traded
businesses.
Cable & Wireless had planned to demerge its UK and
international businesses.
Lapthorne said, "Whilst our trading position is in good health,
the same cannot be said of the financial markets, which are
extremely volatile, and which currently provide no basis for proper
financial planning. Consequently, we have postponed a final
decision on value realisation until we can foresee a sustained
period of normality returning to the financial markets."
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