This will encompass:
This reorganisation and systems implementation will result in one-off non-recurring costs that are expected to be in the region of £400M, which will be incurred in approximately equal amounts over the two halves of the current financial year. As a result, the Company expects to generate annual cost savings that will begin in the second half of the current year and gradually build up to in excess of £200M per annum by the end of the financial year to March 2003. Part of these savings will be reinvested in focused marketing campaigns.
Trading Update for the year to 31 March 2001
Despite a marked deterioration in market trading conditions in the final quarter of the year to March 2001, especially in the US, Marconi expects to report operating profits (before exceptional items and goodwill amortisation) of around £800M (£750M year ended 31 March 2000), within the current range of analyst forecasts, when it presents its preliminary results for the year ended 31 March 2001 on 17 May. Board Changes
As previously announced, following the Company’s Annual General Meeting in July 2001, it is confirmed that Sir Roger Hurn will retire both as Chairman and from the Board, Lord Simpson will become Chairman, and John Mayo will become Chief Executive.
Marconi further announces that, with immediate effect, Steve Hare is appointed to the Board as Chief Financial Officer to succeed John Mayo who takes on the role of Deputy Chief Executive. Steve was previously Senior Vice President, Finance of Marconi plc.