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BT BOSS'S FINAL TRIUMPH

Verwaayen was applauded by City analysts for his transformation of BT

Friday May 16,2008

By Andrew Johnson

BT chief executive Ben Verwaayen cheered investors by reporting forecast-beating revenue growth and good prospects in his final results after six years as boss.

The shares soared 12p to 235bp as the group reported pre-tax profits flat at about £2.5billion on revenues up 2 per cent to £21billion for the year to March.

But the company managed to generate 11 per cent more cash — £1.5billion — fuelling a 5 per cent rise in the dividend to 15.8p a share.

The performance was driven by good results in home and outsourcing division Global Services, which offset a weak performance in BT’s wholesale arm, hit by competition from rivals such as Carphone Warehouse and BSkyB.

Finance director Hanif Lalani said the company expected to make a further £700million savings next year, up from £625million this year.

Verwaayen was applauded by City analysts after his final conference. He has overseen a transformation at BT, wrenching it from traditional telephone call services into the new world of broadband and computer technology.

Rival Charles Dunstone, the boss of Carphone Warehouse, paid tribute. “I tried to make your life a misery but I can’t say I succeeded,” he said.

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