LIME reconfirms EBITDA guidance for 2008/09

13.FEB.09

Richard Lapthorne, Chairman of LIME plc, in a press release, said:

“Our two businesses are performing very much in line with our expectations. We remain alert to the economic environment, but we continue to trade strongly.{{more}}

“Europe, Asia and US have maintained their progress, winning significant new business and gaining market share, as well as renewing contracts with major customers. Our customers are benefiting from a compelling proposition of market leading IP products, high service standards and the opportunity to reduce their cost base.

“In International markets we benefit from a wide spread of geographies, products and customers and we have, in the main, seen resilient trading. We are pleased with the performance in Panama, despite the advent of further competition. Monaco and Macau are performing broadly in line with our expectations. In the Caribbean the restructuring programme is underway and the early results are encouraging, mitigating some softening in the tourist-led economies.

“Consequently, we are confident that we are well positioned going into 2009/10.”

Financial highlights:

Cable & Wireless plc confirms that it is trading in line with expectations and is on track to achieve its guidance for Group EBITDA of at least £780 million for the current financial year to 31 March 2009 assuming an average exchange rate for the year of US$1.88 to £1.00. This guidance remains unchanged since the interim results announced on 10 November 2008 and comprises: International EBITDA of at least US$910 million; EBITDA for Europe, Asia & US, including Thus, of at least £325 million and an EBITDA cost in Central of no more than £29 million.

The Group has significant US dollar denominated profits, cash flow and net assets. The recent strengthening of the US dollar against sterling1 will have a favourable impact on the translation of our International US dollar revenue and EBITDA. This benefit will be offset to some extent by exceptional finance expense from the hedging of a proportion of our US dollar surplus cash flows and debt draw-downs, as these contracts are closed out or marked to the year end exchange rate as required by IFRS.