Feeds

C&W issues profit warning on public sector cuts

Shares slump at unscheduled update

Beginner's guide to SSL certificates

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. ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.