Cable & Wireless hit by Budget fall-out
SHARES in Cable & Wireless Worldwide tumbled today after the telecoms group warned Government spending cuts would hurt full-year earnings growth.
The group said non-contracted public sector spending had "slowed significantly" since the emergency Budget last month and would hit trading as a result.
It is ramping up cost cutting plans to help mitigate the impact, but cautioned that earnings growth would be impacted and forecast overall underlying earnings at the lower end of market expectations.
Shares dropped 13 per cent on the news.