Stricken telecoms firm Marconi has sold microwave division Applied Technologies, continuing disposals aimed at fighting off debt concerns.

Marconi has raised £57m from the sale of the Essex-based division to a consortium led by venture capital firm 3i.

The disposal is the latest in a series of sell-offs aimed at improving prospects for Marconi, which made a £5.7bn loss last year, and was reported as having £2.9bn of debt.

For Applied Technologies, freedom from Marconi improves its chances of winning investment in its work producing components for industrial, laboratory and medical customers.

The sale was "good news" for Applied Technologies, its customers and staff, and its former parent firm, said Marconi chief executive Mike Parton.

He said it would reposition "this strong business for long term growth whilst releasing cash proceeds to Marconi."

3i's previous investments include the £100m purchase of airline Go, which was bought by Easyjet in May for £374m.

Marconi shares, which suffered an infamous collapse last year, stood up 0.35p at 4.2p in afternoon trade in London.