TechMARK movers: Dividend worries for C&W Communications

4th Nov 2010 12:17

Concerns about its dividend have knocked the share price of Cable & Wireless Communications. Pre-tax profits fell to $204m from $223m in the six months to September 2010 even as revenues rose to $1.16m from $1.13m. An interim dividend of 2.67 cents was announced and the company reaffirmed that it intends to pay an 8 cents a share dividend. The interim payout is covered by first half earnings but full year earnings per share are expected to be less than 8 cents a share. Next year's earnings are expected to be around 8 cents a share. Trading was strong in Macau and Monaco, but weakness in the Caribbean continued to 'negatively affect' trading. The shares have lost around one-fifth of their value in less than two months. BlackRock increased its stake in C&W Communications to above 5% prior to the results announcement. There was a more positive reaction to the third quarter figures from Spirent Communications. The communications technology supplier figures exceeded expectations with revenue up 20% to $123.3m and operating profit one-third higher at $29m. Overheads were flat so more of the additional revenue fell through to profit. Demand for telecoms testing equipment is strong. Daniel Stewart forecasts a rise in profit from $86.9m to $109.9m in 2010. Computacenter (CCC) 375.10p -1.24%Logica (LOG) 127.60p -1.09%FTSE TechMARK - RisersSpirent Communications (SPT) 154.60p +6.55%Skyepharma (SKP) 34.50p +5.34%Asterand (ATD) 11.25p +2.27%E2V Technologies (E2V) 93.50p +1.36%Oxford Biomedica (OXB) 9.41p +1.29%Dialight (DIA) 435.00p +1.16%Axis-Shield (ASD) 263.00p +1.15%BATM Advanced Communications Ltd. (BVC) 22.50p +1.12%Corin Group (CRG) 48.50p +1.04%Renovo Group (RNVO) 37.00p +0.68%FTSE TechMARK - FallersCable & Wireless Communications (CWC) 49.51p -8.40%Wolfson Microelectronics (WLF) 232.50p -4.52%ProStrakan Group (PSK) 68.50p -3.18%RM (RM.) 160.00p -2.44%NCC Group (NCC) 465.00p -2.31%Biocompatibles International (BII) 325.00p -2.26%Xaar (XAR) 231.50p -2.11%Vernalis (VER) 41.50p -1.78%Cable & Wireless Worldwide (CW.) 70.05p -1.75%ARM Holdings (ARM) 339.40p -1.74%