New CEO for Cable & Wireless as profits plunge

The announcement of a new chief executive at embattled telecoms firm Cable & Wireless Worldwide (C&W) wasn't enough to stop shares plunging as it announced a big fall in profits.

The company posted pre-tax profits of £35m in the first half, down from £64m in 2010.

But the firm, which has released three profit warnings in the last year, saw profits decimated by exceptional items totalling £624m, including a 'goodwill impairment' of £436m.

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C&W said it would pay an interim dividend of 0.75 pence per share but future dividends would be suspended to improve its balance sheet strength.

The firm said it was trading in line market expectations but the company's shares fell sharply nonetheless, down 10% in morning trading.

The company has appointed Gavin Darby as chief executive with effect from 28 November, replacing John Pluthero, who will leave the board in December.

He will stay with the business to effect an orderly handover and will leave the business in March 2012, the firm said.

Darby joins the company from Vodafone where he was chief executive responsible for the USA, Africa, India and China.

Prior to Vodafone, Darby spent 15 years at Coca-Cola culminating in two regional president roles with responsibility for 30 European countries.

C&W chairman, John Barton, said Darby would provide the "leadership, energy and fresh insight needed by Cable&Wireless Worldwide for the future".