C&W says trading is sunny side up

Grey clouds in Jamaica, though

By Kelly Fiveash • Get more from this author

Posted in Financial News, 17th July 2007 16:17 GMT

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Cable and Wireless (C&W) said it is trading in line with expectations and that it is on track to increase annual profit to between 16 and 24 per cent.

The British telecoms firm said it hoped to see group earnings before interest, tax, deprecation and amortisation (EBITDA) for its current financial year to 31 March 2008 of between £573m and £608m.

Bracknell-based C&W added that its four year agreement with Virgin Media as its sole unbundled local loop (LLU) network provider had helped boost expectations at the firm.

C&W also said that deals with Tiscali and Inuk Networks as well as the announcement of the 25 year sale and leaseback of nine UK properties for which it received £88m had further bolstered its financial outlook in the UK.

C&W chairman Richard Lapthorne said: "We have made a pleasing start to the financial year with both business units making good progress in continuing to execute on their strategic plans."

However, on the international front, the firm said that there had been "some weakness" in the Jamaican market and that plans were afoot to get trading back on course in that area. ®

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