LONDON (AP) — British telecommunications company Cable & Wireless PLC yesterday reported a 13 percent drop in full-year profit, due mainly to an increase in restructuring costs.

For the year ending March 31, the company, a major player in the Bermuda telecommunications market, had a net profit of £143 million ($226 million), down from £164 million in the previous year. Revenue rose 16 percent to £3.65 billion.

Exceptional charges of £182 million offset a strong gain in pretax profit, which was up 58 percent to £398 million. The charge related to restructuring operations in the Caribbean, streamlining and reducing staff at the London headquarters and other cost-cutting programmes.

The company reported revenue increases in all regions and a £50 million gain from the lower value of the pound and other currency movements.

The board set a full year dividend of 8.5 pence per share, up 13 percent from last year.

Cable & Wireless shares were down 9.3 percent to 142.4 pence on the London Stock Exchange.

"The cracks are starting to show and the significant premium to peers such as Vodafone is unwarranted," said Jonathan Groocock, who placed a "sell" rating on shares.

He said the results were slightly below forecasts and the outlook was below expectations.

Jonathan Jackson at Killick & Co. said the market was disappointed by C&W's lack of progress on a planned demerger into two units, one serving major telecoms users and a second providing telecoms services in 39 countries. C&W said it was delaying the plan because of the turmoil in credit and equity markets.

"We don't see any short-term catalyst to drive the shares higher and we are not wholly convinced about the potential value uplift a demerger would bring," Jackson said.