PUBLISHED: 10:03PM GMT 24 Mar 2011
The telecoms group retreated 9.1 – or 14.4pc – to 54.2p after admitting it foresees “competitive pressure in the market for pure data connectivity” and “price erosion on a number of contract re-signs”.
Cable & Wireless
The company, which provides telecommunication services to companies and UK government departments, said core earnings for the year ending March 2012 would be flat on the current year. Analysts had expected earnings of about £444m this year and £470m next year.
C&W Worldwide, which split from the former Cable & Wireless, was one of a number of IT and telecommunication firms that were heavily affected by UK Government spending cuts last year.
Earlier this month, the FTSE 250 group also parted ways with its highly-regarded finance director, Tim Weller. At the time, The Daily Telegraph revealed he was likely to collect almost £1m in compensation following the termination of his contract. He will be replaced by his deputy Ian Gibson.
Mark James, analyst at Liberum Capital, reiterated his “sell” rating on the company. He added: “Today’s announcement that full-year trading in 2012 will miss expectations significantly, has obviously disappointed many.”