Cable & Wireless bucks recession with increased sales and profits


Cable & Wireless bucks recession with increased sales and profits

Antony Savvas

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."

Credit crunch effects to hit IT sector in 2009 >>


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