Cable & Wireless has managed to halt a decline in sales in its core UK business for the first time in three years and reinstated its dividend, the UK telecoms firm said on Wednesday as its recovers from an industry slump.
The 132-year-old company, brought low by the telecoms and Internet downturn that saw its US foray flounder and its UK business stagnate, suspended dividend payments for a year last June as it sought to give itself greater financial leeway to overhaul its business.
On Wednesday, Cable & Wireless said it planned to pay a full dividend for the year of 3.15 pence per share comprising an interim dividend of 1.05 pence per share and a final one of 2.1p, effectively reinstating the dividend six months early.
"Eighteen months ago Cable & Wireless was regarded as down and out. Today, that is not the case and the resumption of dividends... is evidence of our belief that we can build a prosperous future," Chairman Richard Lapthorne said.
The firm said its UK businesses posted revenues of 1.66 billion pounds ($3.05 billion) for the year to March 31, slightly under half the annual revenues of 3.38 billion pounds for the group.
The market consensus figure for annual group revenue was 3.66 billion pounds, with forecasts ranging from 3.24 billion to 3.85 billion.
The group posted a pre-tax profit before exceptionals from continuing business of 317 million pounds, equal to eight pence a share.
Cable & Wireless is in the midst of restructuring its mainstay UK business, which accounts for about a half of its revenues. It sold its loss-making US businesses last December.
It is also seeing revenues under pressure in its key Caribbean market from rising competition brought about by deregulation and made worse by adverse currency movements.
Shares in the firm, the best performing stock on London blue chip FTSE-100 index last year but down 8.6 percent so far this year, closed Tuesday at 121-1/5 pence, valuing the company around 2.9 billion pounds.
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