C&W Worldwide names new CEO

Cable & Wireless Worldwide has appointed a former Vodafone executive to run the company.

C&W Worldwide sought to bring an end to its torrid year with a halt to the dividend and a host of writedowns.

The group, which had already dispensed with senior executives after three profit warnings in less than a year, said Gavin Darby would take over as chief executive from November 28, replacing long-time associate John Pluthero.

Hide Ad
Hide Ad

In a bid to draw a line under the tough trading, C&W Worldwide announced a goodwill impairment of £436m, a deferred tax asset write down of £146m and the write off of obsolete assets of around £42m.

In total, the exceptional items come to £624m.

The group also announced an agreement with its pension fund trustees, with an initial payment of £100m, meaning £125m will no longer be needed to be put aside.

It said it would suspend dividend payments after the interim dividend of 0.75 pence a share until it reaches a point when free cash flow comfortably covers proposed dividends.

C&W Worldwide, which competes with BT, provides voice, data and IP based services to multinational companies and governments after it demerged from Cable & Wireless Communications, which is focused on the Caribbean.

Hide Ad
Hide Ad

The profit warnings have been blamed on austerity measures by the British government, pricing pressure on core data services and higher energy and rental costs. Its traditional voice business has also declined faster than expected.

Shares in the group, which traces its history back to the 1860s and the laying of the first submarine cable across the Atlantic, have slumped from a peak of 98.5p shortly after the demerger.

They closed down at 30 pence on Monday.

The changes came as the group posted first half revenues and core earnings broadly in line with forecasts. Revenues for the six months were flat at £1.1bn and core earnings were down to £190m, from £214m the previous year.

Related topics: