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 …
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.
Clueless and Witless
ah ha, that explains the govt. work then..
Couldn't have put it better.
This Cash cow has died..
Where's my shovel..
Pining for the F-Gords
It's not dead, just sleeping. It could be back in five years.
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),
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?
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.
Snoopy, snoopy C&W
Have some of it back.