MARCONI CORPORATION PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 6
months months Year
to to to
30 30 31
September September March
£ million Note 2003 2003 2003
TURNOVER
Continuing operations 3 756 1,019 1,914
Discontinued operations 3 - 87 88
Group 2 756 1,106 2,002
---------- ---------- ----------
OPERATING LOSS
Group operating loss
Excluding goodwill (67) (231) (308)
amortisation and
exceptional items
Goodwill amortisation (49) (54) (104)
Operating exceptional 4a (33) (206) (317)
items
3 (149) (491) (729)
Continuing operations (149) (485) (723)
Discontinued operations - (6) (6)
3 (149) (491) (729)
Share of operating loss of
joint ventures
Excluding goodwill (2) (4) (8)
amortisation and
exceptional items
Operating exceptional 4a - (32) (32)
items
(2) (36) (40)
--------- --------- ---------
(151) (527) (769)
Share of operating loss of
associates
Excluding goodwill (6) (17) (27)
amortisation and
exceptional items
Goodwill amortisation (5) (5) (10)
Goodwill impairment - (27) (27)
Operating exceptional 4b - (18) (25)
items
(11) (67) (89)
--------- --------- ---------
Total operating loss 2 (162) (594) (858)
Non-operating exceptional
items
Gain / loss on disposal of 4c 9 (5) (5)
discontinued operations
Gain on disposal of 4c 76 - -
associates
Gain on disposal of fixed 4c 18 31 26
assets and investments in
continuing operations
Merger/demerger items - - 123
Group share of associates' 4c - (3) (3)
non-operating exceptional
items
103 23 141
Amounts revalued/(written 4d 1 (40) (40)
off) investments
Gain / (loss) on waiver of 4e 25 (186) (315)
balance payable to Marconi
plc group
Net interest payable
Group 5 (20) (120) (242)
Share of joint ventures 5 - 1 -
and associates
5 (20) (119) (242)
Net finance (expenditure) 6 (47) 2 (14)
/ income
LOSS ON ORDINARY
ACTIVITIES BEFORE
TAXATION
Excluding goodwill (142) (369) (599)
amortisation and
exceptional items
Goodwill amortisation and 42 (545) (729)
exceptional items
2 (100) (914) (1,328)
TAX CREDIT/(CHARGE) ON
LOSS ON ORDINARY
ACTIVITIES
Excluding tax on goodwill (6) (10) 107
amortisation and
exceptional items
Exceptional tax credit 20 - 78
7a 14 (10) 185
LOSS ON ORDINARY (86) (924) (1,143)
ACTIVITIES AFTER
TAXATION
Equity minority - (1) (1)
interests
--------- --------- ---------
LOSS ON ORDINARY (86) (925) (1,144)
ACTIVITIES ATTRIBUTABLE TO
THE EQUITY SHAREHOLDERS
AND RETAINED LOSS FOR THE
PERIOD
======= ======= =======
Basic and diluted loss per 8 (28.8p) (161.4p) (199.6p)
share
Basic adjusted loss per 8 (34.2p) (66.4p) (86.0p)
share
======= ======= =======
MARCONI CORPORATION PLC
CONSOLIDATED BALANCE SHEET
30 30 30 31
September September June March
£ million Note 2003 2003 2003 2003
FIXED
ASSETS
Goodwill 541 672 566 597
Tangible 192 329 209 243
assets
Investments 23 121 57 63
---------- ---------- ---------- ----------
756 1,122 832 903
CURRENT
ASSETS
Stocks and 10 202 356 215 234
contracts in
progress
Debtors: 11 464 803 519 581
amounts
falling due
within one
year
Debtors: 11 8 59 10 32
amounts
falling due
after more
than one
year
Cash at bank 12 772 1,062 788 1,158
and in hand
---------- ---------- ---------- ----------
1,446 2,280 1,532 2,005
Creditors: 13 (627) (3,611) (666) (5,541)
amounts
falling due
within one
year
---------- ---------- ---------- ----------
NET CURRENT 819 (1,331) 866 (3,536)
ASSETS/
(LIABILITIES)
---------- ----------
Total assets 1,575 (209) 1,698 (2,633)
less current
liabilities
Creditors: 13 (660) (2,107) (770) (46)
Amounts
falling due
after more
than one
year
Provisions 14 (246) (456) (268) (300)
for
liabilities
and charges
---------- ---------- ---------- ----------
NET ASSETS/ 669 (2,772) 660 (2,979)
(LIABILITIES)
BEFORE
RETIREMENT
BENEFIT
DEFICITS
Retirement 1 (346) (439) (357) (353)
benefit
scheme
deficits
---------- ---------- ----------
NET ASSETS/ 323 (3,211) 303 (3,332)
(LIABILITIES)
AFTER
RETIREMENT
BENEFIT
DEFICITS
======== ======= ====== ======
CAPITAL AND
RESERVES
Called-up 15a 50 143 50 143
share
capital
Shares to be 15b 8 - 1 -
issued
Share premium 15b - 700 - 700
account
Capital 15b 9 9 9 9
reserve
Capital 15b 334 - 343 -
reduction
reserve
Profit and 15b (81) (4,072) (102) (4,187)
loss
account
---------- ---------- ---------- ----------
Equity 320 (3,220) 301 (3,335)
shareholders'
interests
Equity 3 9 2 3
minority
interests
---------- ---------- ---------- ----------
323 (3,211) 303 (3,332)
===== ===== ===== =====
MARCONI CORPORATION PLC
CONSOLIDATED CASH FLOW STATEMENT
6 6
months months Year
to to to
30 30 31
September September March
£ million Note 2003 2002 2003
Net cash inflow/(outflow) 16a 65 (142) 8
from operating activities
before exceptional items
Exceptional cash outflows 4f (109) (181) (329)
from operating
activities
Net cash outflow from
operating activities after
exceptional items
Continuing operations (44) (282) (282)
Discontinued operations - (41) (39)
(44) (323) (321)
Returns on investments and 16b (19) (158) (164)
servicing of finance
Tax (paid)/repaid 16c (2) (13) 31
Capital expenditure and 16d 41 (25) (30)
financial investment
Acquisitions and 16e 98 387 433
disposals
---------- ---------- ----------
Cash inflow/(outflow) 74 (132) (51)
before use of liquid
resources and financing
Net cash inflow/(outflow) 16f 19 (77) (159)
from management of liquid
resources
Cash element of Scheme 16g (340) - -
consideration
Other net cash outflow 16g (105) (38) (40)
from financing
---------- ---------- ----------
DECREASE IN CASH AND NET (352) (247) (250)
BANK BALANCES REPAYABLE ON
DEMAND
======= ======= =======