Straightforward planning

4 June 2003

The telecoms group s new strategy is right. But C&W isn t saying how much the restructuring will cost. It won t be cheap, judging by horrible UK losses. But investors should not draw alarmist conclusions from the scrapped dividend.

This content is for Subscribers only

Context News

Cable & Wireless revealed the results of its longawaited strategic review along with its fullyear figures on Wednesday.

The UK telecoms group will withdraw from its US operations. It is still considering all options for how to exit.

C&W plans a big restructuring of its UK operations. They lost £303m at the operating level in the year to March 31, even though they generated ebitda of £110m. The group hopes to save £260m in annual depreciation charges as the result of a writedown in this business.

The company, which reported £1.6bn of net cash, scrapped its full year dividend and next year's interim payout, a move expected to save £140m of cash.

C&W declined to say how much the restructuring would cost. However, it promised to update the market on progress regularly.

Email a friend

Please complete the form below.

Required fields *