Shares in BT today fell to their lowest level since it floated 24 years ago after the telecoms group gave warning that profits would fall below expectations and the head of its global services division had resigned.

Although BT said that group revenue would be ahead of forecasts in the second quarter, it said that earnings would be "slightly below expectations".

BT's shares plunged 19.2 per cent to 114.8p, below the 130p price its shares were offered at when it floated on the London Stock Exchange in November 1984.

The company blamed the fall in profits on a "disappointing" performance from its global services arm, and announced that Francois Barrault, chief executive of the division for just 18 months, will resign to be replaced by Hanif Lalani, BT’s group finance director.

BT said that its other divisions will deliver results in line or ahead of expectations.

The company's global services division specialises in networked IT services.

A trading statement this morning said that, while revenue growth in the global services department would rise 15 per cent year on year, earnings before interest, tax, depreciation and amortisation would be significantly below expectations at £120 million.

Ian Livingston, chief executive of BT, said that the global services department had won major contracts and delivered much improved customer service, but said that Mr Lalani would "deliver improved profitability, margins and return on capital for the group and outstanding service for customers."

Mr Livingston replaced Ben Verwaayen as chief executive less than six months ago.

Mr Lalani has held several senior posts at BT, including chief executive of BT Northern Ireland, chief financial officer of BT Wholesale and group finance director.

BT said it would pay an interim dividend of 5.4 pence in line with last year, but analysts said it was likely that the full-year dividend would be cut.

Today's grim news on the global services division is the second such warning this year, after the first-quarter results showed that margins had fallen to 9.5 per cent, despite a pledge from the company that it could achieve a medium-term target of 15 per cent.

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