BT cuts forecast as value slumps

BT lost a fifth of its market value yesterday when an Italian accounting scandal compounded a sudden slowdown in its British government work, forcing the telecoms group to cut forecasts for the next two years.

In an abrupt halt to the recovery BT had eked out since the 2008 downturn, the company’s shares plunged to a three and a half year low in their worst ever one-day fall.

While an admission of a £530m (€614m) black hole in BT’s Italian accounts shocked many, a slowdown in public sector contracts could have the longer lasting impact.