The new boss of BT has unveiled a three-year plan to cut costs, debt and limit spending to drive profit growth at the country's dominant phone company.
Mr Ben Verwaayen targeted a 25 per cent compound annual growth rate in earnings per share and plans for £375 million in cost savings this year. The plan comes after a strategic review in his initial months in the post.
"This is all about solidity. We are committing ourselves to deliver what I say are attractive numbers, and we don't do it by fancy new initiatives that are somewhere in the air. There's two feet on the ground, it's absolutely doable," Mr Verwaayen said today.
BT said it would take debt below £10 billion by March 2005. BT debt has been more than halved in the past year, but was still expected to be in the £15 billion range at the end of March.
Costs would be helped down as BT continues to shed 5,000-6,000 jobs per year, in line with the past couple years and previously announced plans for its 108,000-strong workforce.
The company also said it would upgrade 100 more exchanges for broadband, adding British 50 cities and towns to the "broadband map".
Dealers and analysts gave a mildly positive view to the new strategy, but they expected little effect on BT's share price. The stock was two pence lower at 271p in morning trade.
Many analysts have picked out BT among European fixed-line operators because of the financial problems faced by its cable rivals NTL and Telewest and other large and heavily indebted former monopolies around Europe.