Feeds

C&W issues profit warning on public sector cuts

Shares slump at unscheduled update

Choosing a cloud hosting partner with confidence

Cable and Wireless shares tumbled more than 20 per cent this morning after it warned investors it would miss profit targets because of cuts in the public sector.

"Following the new government's emergency budget in late June, non-contracted spending in the UK public sector has slowed very significantly," it said in an unscheduled trading update.

"Given the nature of our public sector business, this reduction will adversely impact trading in the current year."

Cable and Wireless is a major network builder for both central and local government. Among many big contracts, it runs the Government Secure Intranet, used by Whitehall departments to shift data between their networks. Today's announcement indicates bosses expect new work to be scarce.

Despite the warning, Cable and Wireless said it supports the coalition's approach, which is expected to involve cuts of 25 to 40 per cent throughout the public sector. It said the first quarter had been in line with expectations, but as the emergency budget takes effect times will be tougher. ®

Remote control for virtualized desktops

More from The Register

next story
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
The cloud that goes puff: Seagate Central home NAS woes
4TB of home storage is great, until you wake up to a dead device
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.