Cable & Wireless on target despite cuts

 
City A.M. Reporter
Telecoms firm Cable & Wireless Worldwide is comfortable with full-year expectations after posting first-half sales and earnings in line with forecasts despite pressure from cuts to UK public spending.

C&W Worldwide, which concentrates on the global corporate market and has a large presence in Britain, said the "satisfactory" results had been held back by the challenges in the UK public sector but said they had developed good momentum by the end of the first half.

The group posted revenues down 1.6 per cent to £1.12bn, in line with a company-supplied forecast. Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 4.4 per cent to £214m, also in line with forecasts.

Pretax profit at £53m was comfortably ahead of the forecast of £40m.

C&W Worldwide said the strong finish to the first six months had given it good momentum going into the second half of the year and said a Memorandum of Understanding it had with the British government would help it build its presence in this market.

"Overall we remain comfortable with full year expectations," chief executive Jim Marsh said in a statement.