back to article C&W issues profit warning on public sector cuts

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 …

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Anonymous Coward

C&W

C&W - not nicknamed Clueless and Witless for nothing. The Empire has faded, the cash cows are dead. C&W is on its last legs, the 20% reduction in share price is only the beginning.

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Anonymous Coward

Clueless and Witless

ah ha, that explains the govt. work then..

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Thumb Up

Empire

Couldn't have put it better.

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Gates Horns

This Cash cow has died..

Where's my shovel..

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Silver badge

Pining for the F-Gords

It's not dead, just sleeping. It could be back in five years.

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Grenade

C&W will survive.....for now....

In light of this news (And Sky considering sale of Easynet) I reckon C&W will sell some assets this year to inflate their performance by the end of the financial year (I'm looking squarely at you Thus, who only survived staying part of the C&W family last year due to the demerger),

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FAIL

So....

C&W basically based their entire financial model on "non contracted" government work. Given that a lot of their contract work is for the Government isn't this really a case of putting all your eggs into one basket?

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Anonymous Coward

yes but..

the govt. don't appear to ask questions about either the cost, or the product, which leads to making lots of money off them without having to actually deliver a lot of stuff.

There's not many customers you can say that about, and if they are the main/only customers, one is naturally lead to certain conclusions.

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Anonymous Coward

Snoopy, snoopy C&W

Have some of it back.

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