MARCONI (MONI).

Investors Chronicle, November, 2004

There were no nasty surprises in these figures but, given October's disappointing trading update, there shouldn't have been. Gross margins of 32.7 per cent were five percentage points higher than in the first half last year, but this was slightly lower than the company was hoping for, thanks to a less favourable sales mix.

Despite the margin shortfall, Marconi is sticking to its "stretching" gross margin target of 34 per cent for the full year. Chief executive Mike Parton is relying on an improved mix, higher volumes and cost savings to push profitability to the targeted level. He also highlighted a pick-up in tender activity and customer trials that he hopes will translate into profitable business.

There was a modest operating cash outflow in the...

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