CEO resigns at Cable & Wireless Worldwide as profits warning is sounded

Cable and Wireless Worldwide shares slid 8.8p (16.9 per cent) to 43.4p in early trading after chief executive Jim Marsh resigned.

This followed the corporate telecoms group issueing a profit warning just ten weeks into its new financial year due to a slump in orders.

The company, which issued two profit warnings in its troubled first year as a stand-alone company, said earnings would be between 5 per cent and 10 per cent below current market expectations, and said it would cut its intended dividend distribution for the current financial year by half to 2.25p a share.

The company, which split from the former Cable & Wireless in March 2010, said chairman John Pluthero, who was known for turning around the original C&W, had replaced Jim Marsh.

'Clearly it has been a very difficult 12 months and it is now important that we take the necessary steps to ensure the future growth of our business,' Pluthero said in a statement.

'It has been easy to lose sight of what this business could be; it is my intention to reassert and realise that future.'

Source: This Is Money, 28th June 2011

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