C&W aims to buy back stock

The company issued a profit warning in March, a forecast that held good as the company unveiled a 16 per cent fall in pre-tax profits to £3.4bn for the year ended March 31, compared with £4bn the previous year. Group revenues in the period fell nearly 12 per cent to £8.1bn.

Cable & Wireless (C&W) has claimed that increasing its share buyback limit (currently 8.7 per cent) would give it "maximum flexibility" as it considers options for the £6bn it has amassed following a recent series of disposals. The issue will be raised at the C&W shareholders AGM on 20 July.

The company recently bought US internet company Digital Island for $340m, and further states that performance will improve significantly in the second half of this year as it implements plans to eliminate low-margin revenues.