Marconi, Marconi upbeat on debt reduction

Manufacturing News, Source : TheManufacturer.com
Published : 25 Apr 2002 10:18

Marconi has announced that has almost halved its net debt since September. Net debt on March 31 was within its target range at £2.9 billion, down from £4.3 billion on September 30, 2001.

However the company also said second-half exceptional costs are expected to be as high as £800 million. Marconi is still working with bondholders and lending banks to reach an agreement on restructuring its finances, and will "accept certain restrictions on financial and corporate activities" while these discussions are taking place.

Chief executive Mike Parton said: "We have generated over £360 million of positive operating cashflow since the beginning of September despite difficult market conditions, demonstrating the whole company's commitment to cash generation. This cash, combined with our successful disposal programme, has helped us to achieve a £1.6 billion reduction in our net debt in that same period."

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