MOBILE phone leader Vodafone set an unwanted corporate record yesterday after a review of its assets left annual losses at £14.85bn.

The company said its operating performance had been good but a decision to write off £23.5bn from the value of its assets, in particular its German acquisition Mannesmann, created the all-time high for a UK company.

Vodafone also said it was axing 400 jobs at its Newbury headquarters, in Berkshire, and said other workers would leave its payroll as part of a five-year outsourcing initiative.

The world's biggest mobile operator is looking to cut costs as it faces up to intense competition and launches new services to take on fixed-line and broadband operators in lower-margin markets.

Among its plans, Vodafone will launch a "homezone", offer which charges customers cheaper rates if they use their mobiles close to home. It will also begin to roll out services offering broadband connections.

Despite the massive loss, Vodafone shares rose three per cent yesterday as investors welcomed strong growth in operating profits and a 49 per cent rise in the company's dividend.

In the annual results, Vodafone said it added 21.5 million users during the year to take its worldwide customer base to 170.6 million. Group revenues were up 7.5 per cent to £29.4bn in the year.

In the UK, where the company has 16.3 million customers, Vodafone said revenues were 0.3 per cent lower in a market it described as being one of its most competitive. Operating profits in the UK were 10.4 per cent lower at £698m.

Across the group, profits before the write-down rose to £8.79bn for the year to March 31, compared with £7.8bn a year earlier.

The bottom-line figure of £14.85bn compared with the previous low from the company of £13.54bn in 2002, when it also reported a number of non-cash exceptional items.

Chief executive Arun Sarin said the underlying performance of the group remained good after outperforming its competitors in an "increasingly challenging marketplace".

Vodafone yesterday indicated it would look to drive growth through its existing businesses, rather than returning to the acquisition trail.

Daniel Krimholtz, equity analyst at Barclays Stockbrokers, said Vodafone appeared to be making the right moves in terms of expanding its product base.

He said: "It is streamlining its portfolio, concentrating on core markets, with growth from emerging markets and new business streams, importantly including broadband."