TOM GIDLEY-KITCHIN CHARLES STANLEY
Generally the figures were extremely positive. Management has clearly got on top of sorting out Global Services and the increased free cash flow guidance is quite dramatic. The only issue that people are a bit concerned over is that there may be bad news from the pension regulator. KEITH BOWMAN HARGREAVES LANSDOWN
BT has delivered a solid, if not wholly convincing, performance. Cost cutting initiatives, as opposed to sales, lie at the heart of the group’s delivery, with measures running ahead of schedule. But management remains in defensive mode, believing that ‘the worst is not yet over’. DAVID MOLONY OVUM
The issue is that the financial improvement is down to taking costs out of the business and not a surge in demand for BT’s services. They are racing to balance a revenue decline with operational cost cutting, but it is a race they can’t win. They have to find a way to support growth.