Marconi embarked on a major restructuring after nearly collapsing

First-quarter sales came in at �339m ($627m), down from �378m in the previous quarter but up by 4% on last year after stripping out currency moves.

However, margins were hit by lower sales of more expensive products and a seasonal dip in business.

Marconi nearly collapsed in 2000 when the tech bubble burst, only surviving thanks to a drastic restructuring.

By the close of trade on the London Stock Exchange, Marconi's shares were down 41 pence at 655p.

Slow recovery

The return to modest year-on-year sales growth... strengthens our confidence in our medium term prospects Mike Parton, Marconi chief executive See Marconi's latest share price

Marconi, which formed itself from the once mighty UK industrial giant GEC, was on the verge of collapse in 2000 when the bottom fell out of the telecoms and technology markets.

The group suffered a sharp drop in orders following its switch of focus from electronics to telecoms and was forced into a major restructuring in 2003 when creditors forgave �4bn of debt in return for majority ownership.

The company employs a third of its 12,400 global workforce in the UK at sites in Coventry, Nottingham, Liverpool and Chelmsford.