C&WW warns of lower profits

Michael Carroll
21 Jul 2010
00:00

Cable & Wireless Worldwide cut its full-year forecasts yesterday, claiming savage public sector spending cuts in the UK has hit business hard.

The UK-based carrier said ebitda would likely fall at the lower end of its forecast of £452 million ($691m) to £484 million, and that it was accelerating cost-cutting schemes in a bid to reduce operating expenses for full-year 2010.

“Non-contracted spending in the UK public sector has slowed very significantly,” the firm said in a statement, noting that the slump will “adversely impact trading in the current year.”

UK public sector contracts accounted for 12% of group revenue in 2009, FT.com reported.

The new British government unveiled heavy spending cuts in an emergency budget last month, aiming to shed £113.5 billion from public sector spending over the next five years.

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