Cable & Wireless Worldwide has warned for lower results this year due to the UK government’s budget cuts. The company said results were largely in line with expectations in the first quarter. However, following the new UK government’s emergency budget in late June, non-contracted spending in the UK public sector has slowed very significantly. In light of the downturn in public sector activity, the company has stepped up cost reduction initiatives and now expects lower operating expenditure this year. Overall, C&W predicts somewhat slower growth in EBITDA for the full year to March 2011, with results expected at the lower end of the range of expectations. The outlook for operating cash flow is downgraded in line with the change in EBITDA outlook.