Cable & Wireless today rejected speculation that it could be taken over as "market mischief-making", as a 20 per cent jump in profits boosted the group's shares.

Tony Rice, finance director, said: "There is no imminent bid activity as far as we are concerned." The telecoms group, which last year completed an internal split of its UK and international operations, is frequently cited as a likely bid target.

The group reported earnings before interest, tax, depreciation and amortisation up 20 per cent to £492 million in the year to March 31, some £15 million ahead of the top end of City forecasts. Pre-tax profits rose from £100 million to £249 million, pushing the group's shares up 7.1p, or nearly 4 per cent, to 193.8p by 12.50am.

The profits improvement was delivered on the back of an improved performance in its international business and cost-cutting in the UK, where it has been restructuring operations. Some 3,000 jobs will be cut from the UK division, now renamed Europe, Asia and US, over the next five years.

Richard Lapthorne, chairman, said: “It's been a good year. The success of the structural changes we made a year ago is there for all to see ... We have made a very encouraging start to the Europe, Asia & US turnaround and we now have sufficient visibility to believe that we'll deliver on our ambitious targets."

A team of 60 top managers will share a bonus pool worth more than £200 million if the company's share price reaches 228p by 2010. The scheme was introduced last year with the splitting of the business.

Executives told investors to expect earnings of between £573 million and £608 million for the current financial year, bolstered by strong growth in its international business, with operations in the Caribbean.

The UK unit is being renamed Europe, Asia and US to better reflect where it operates.

A 30 per cent rise in the full-year dividend means shareholders will receive a 5.85p a share payout.

You can track Cable & Wireless shares by clicking here.

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