Marconi completed a major restructuring this year

The losses are down from �458m a year ago, as the firm says its "long-term optimism looks increasingly justified".

The company has recently emerged from a massive �4bn restructuring drive, shedding thousands of jobs and selling off units.

Marconi said it had helped by rising sales, but that its markets remained hard to predict.

Quarterly sales

Last month, Marconi reported its first quarterly sales growth in 18 months, but said it saw no early respite from the downturn that nearly led to its collapse.

The group reported revenues in the three months to September were up 6% to �389m ($649.6m) on the previous three months.

In a statement, Chief Executive Mike Parton admitted that the market was still difficult to predict beyond the current quarter.

"However, I believe our optimism for the longer term looks increasingly justified," he said.

Restructuring deal

Marconi stunned shareholders in July 2001 when it said operating profits would halve due to an industry-wide downturn.

It was forced to take drastic action after it borrowed heavily to fund an acquisition spree just as the telecoms boom was coming to an end.

The share price went into meltdown and the company, once a pillar of UK industry, had to enter a restructuring deal with its creditors.