Marconi Reports on Its Year
LONDON -- Marconi Corporation plc (MONI) today announced financial
results for the three months and twelve months ended 31 March 2003.
Commenting on the past year, John Devaney, Chairman of Marconi Corporation plc, said: 'The successful completion of the financial restructuring was a watershed for the business. It enables us to look forward with greater optimism than at any time since the downturn in our markets started two years ago.'
Commenting on the results, Mike Parton, Chief Executive, said: 'We have continued to make operational progress quarter on quarter, reaching EBITDA positive in our Core business during the final quarter as a result of improving margins and falling costs. This is a tangible demonstration that the actions we are taking to return the business to operational health are working. Our markets remain very tough and we will continue to take the actions necessary to build on this improved operational performance.'
•Financial Restructuring complete; listing of Marconi Corporation plc effective from 19 May 2003
•Improved financial position post-Restructuring (March 2003 actual and pro forma)
+ •Marconi Group gross external debt reduced to £808m (pro forma) from
£3.9 bn (1)
+ •Adjusted cash balance £783m
+ •Net assets of £400m pro forma compared to net liabilities of £3.3bn
•Very tough market conditions translated to single-digit declines in Core
sales quarter on quarter to £426 million in Q4; FY03 Core sales £1,874m
•Seven point gain in Core gross margin (before exceptional items) from 17.5% (Q1) to 24.4% (Q4); FY03 Core gross margin (before exceptional items) 19.9%
•Annualised Core operating cost run-rate (before goodwill amortisation and exceptional items) reduced from £890m (March 2002) to £490m (March 2003)
•£10m positive Core adjusted EBITDA in final quarter; FY03 Core adjusted EBITDA loss £140m
•Two consecutive quarters of positive Core adjusted operating cash flow after capex (Q3 £66m; Q4 £86m)
•Group Sales £2.0bn; Group Operating Loss £729m; Group Loss after Taxation
£1.1bn; Group Loss per Share 39.9 pence
+ Q1 04 Group sales expected to fall below £400m
+ FY04 financial targets revised: gross margin run-rate of at least 27%; target annualised operating cost run-rate (before goodwill amortisation and exceptional items) to be reduced below £425m; Core breakeven sales reduced to around £1.5 billion
Marconi Corp. plc