Cable & Wireless plots overseas growth

Telecoms group Cable & Wireless signalled today it would continue to look for overseas acquisitions, despite on-going restructuring efforts in the UK.

Harris Jones, chief executive of C&W’s international arm, told the Financial Times in an interview that his division intended to be “robust” in seeking out deals, adding that UK operations would have no impact on his strategy.

C&W is expected to make a revised offer for KeyTech, Bermuda’s main telecoms company, while Jersey’s state-owned telecoms company could be a target.

Mr Jones said there were no constraints on the use of cash generated by C&W’s international businesses following the group’s restructuring in January.

In the UK, C&W is looking to concentrate on fewer and larger corporate customers, while reducing the complexity in its products and systems. The group also envisaged its current headcount of 5,500 would fall to between 2,500 and 3,500 over the next four to five years.

Mr Jones and John Pluthero, who is managing director of C&W’s UK division, will each receive £20m (€30m) if they achieve their goals.

The international arm has operations in 33 countries, including the Caribbean, Guernsey, Jersey and the Isle of Man. It accounted for around 38% of turnover in the 2005/06 financial year.

Mr Jones said he was confident he could increase revenues through a combination of organic growth and acquisitions after ending years of falling sales.

He told the FT: “We intend to be robust in looking at more acquisitions.”