Reclassification of subsidiary costs Cable & Wireless
Telecommunications player takes £13m hit under new standards.
Cable and Wireless has seen £13m of its pre-tax profits for 2004 disappear after adopting international accounting standards. The company’s pre-tax profit for 2004 has dropped from £317m under UK GAAP to £291m under IFRS.
The telecommunications company has had to reclassify its Dhiraagu business in the Maldives, which brought on the £13m hit to pre-tax earnings. The company had to trim a further £4m off pre-tax profits as the accounting for share-based payments would also change.
Charles Herlinger, the group’s CFO, was not overly alarmed by the swing in the figures, as there would be no material effects for the company.
‘The adoption of Cable & Wireless’ consolidated accounts for the year ended 31 March 2004 has a modest impact on earnings per share and free cash flow’, Herlinger said.