Cable & Wireless is turning around its fortunes

Releasing its annual results, the firm made a pre-tax profit of �317m for the 12 months ending 31 March, compared to �79m for the year before.

The group, which is 12 months into a three-year plan to turn around its fortunes, also reported it had finally managed to withdraw from the US market.

But its lengthy exit from its US web hosting business eventually cost �300m.

The upbeat performance boosted shares in Cable & Wireless, which rose 6% to 128.75 pence in early afternoon trade on the London Stock Exchange.

Prosperous future?

Overall Cable & Wireless sales were down to �3.4bn from �3.7bn last year. But the company said it has been able to halt a three-year decline in UK sales, and that it has been able to resume dividend payments for shareholders.

The past year has seen a remarkable determination to succeed from our staff worldwide Richard Lapthorne, Cable & Wireless chairman Cable & Wireless shares latest

It also said it has managed �93m of cost savings in the UK, as it continues to recover the overall business after an over-ambitious expansion at the time of the telecoms and dot.com bubble badly backfired on the company, especially in the US.

"Eighteen months ago Cable & Wireless was regarded as down and out," said Cable & Wireless chairman Richard Lapthorne.

"Today that is not the case and the resumption of dividends...is evidence of our belief that we can build a prosperous future.

"Whether in the restructuring of our portfolio of businesses or our operations, the past year has seen a remarkable determination to succeed from our staff worldwide."

The company said its continuing turnaround would be driven by its ability to address customer needs and capitalise on the opportunities offered by the shift in technology.

Last year Cable & Wireless announced it was moving its UK headquarters from London to Bracknell in Berkshire, to save �30m.