Marconi's makeover

3 May 2005

The troubled group has highlighted how its pensions deficit has fallen and its deferred tax assets increased in value. At the current share price, a buyer would get the admittedly battered core business for almost nothing.

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In a statement seen as a comeon to potential buyers, Marconi updated the stock market of its trading and financial position on Tuesday.

The UK telecoms equipment manufacturer said that its pensions scheme liability had diminished in the three months to March 31 and that the value of its unrecognised deferred tax assets had increased significantly.

It added that its revenue and adjusted operating profit for the quarter were in line with market expectations, and that it ended the period with about £300m of net cash.

Marconi's shares roughly halved in value last week after it was left out of a fiveyear £10bn network upgrade unveiled by BT, the UK's exmonopoly telecoms group.

In its statement, Marconi pointed out that revenues unrelated to BT exceeded £1bn for the year to March 31.

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