BELEAGUERED telecoms group Marconi made a massive £5.1bn loss in the last half-year, one of the worst corporate figures in history.
The group, which has shocked the market with profit warnings and thousands of job cuts, and has been ejected from the FTSE 100 Index, also said sales fell 19 per cent, to £2.58bn.
The £5.1bn losses for the period to September 30, equating to £28m a day, includes a charge of £3.5bn, incurred after Marconi cut the value of acquisitions made during the technology boom, such as US group Fore Systems.
Figures were also hit by a £148m increase in doubtful debt provisions. The losses compare with losses of £66m for the same period the previous year.
Jeremy Batstone, head of research at Natwest Stockbrokers, said: "Marconi's figures are being seen as one of the worst corporate losses in history."
Justin Urquhart Stewart, at 7 Investment Management, said they were the worst results in recent memory.
"It took eight years to grow the company and 18 months to bring it to its knees," he said.
Marconi said trading in the first half-year was extremely difficult, with unprecedented declines in spending on network infrastructure.
However, chief executive Mike Parton said a new management team was beginning to improve performance.
Mr Parton, who took the helm after former boss Lord Simpson was ousted, said that, although he was not anticipating an upturn in the market next year, he was confident the company would weather the difficult period.
The company was taking costs out of the business, but was still investing heavily in products.
"There is much more to be done in the coming months, and we expect little or no help from our major markets, which remain depressed," he said.
He said large exceptional costs were a "necessary part of getting Marconi focused on the future"
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article