C&W says it has "no illusions" about the tough road ahead

The UK company posted a pre-tax loss of �3m ($5m), compared with a previous loss of �4.4bn.

C&W said it was making good progress in its plans to ditch its loss-making operations in the US.

The company said it had also shed 600 jobs in the UK as part of a three-year recovery plan.

Earlier in the year C&W said it planned to cut 1,500 UK jobs in an effort to restructure its business.

Recovery hopes

C&W said it had exited eight data centres in the US and reduced its workforce in the country by more than 1,000 to around 1,700.

The company said it had also cut the headcount at its Caribbean-based National Telcos division by 800.

Chief executive Francesco Caio said C&W had made "an encouraging beginning" to its restructuring plan.

But he added that he was under "no illusions" about the challenges which lay ahead for the company.

In September, C&W announced it was moving its UK headquarters from London to Bracknell in Berkshire, to save �30m.