Against challenging market conditions we have achieved continued growth and strong margin improvement

William Allan

The telecoms, internet and call centres firm added it expects to achieve strong revenue growth and sustain its underlying profitability in its full financial year, which ends in March.

The firm said its move into the black was due to a mix of "increasing revenue and tight cost control".

Underlying profit does not include one-off costs and other business expenses.

Shares climb

On the London Stock Exchange, the news sent Thus shares racing 3.5% higher to become the biggest gainer in the FTSE 250 index of second-tier stocks, within half an hour of the session opening.

Thus' upbeat statement contrasted sharply with a profits warning from another UK telecoms firm, Energis, on Thursday.

Investors rushed to offload Energis' shares after it said its situation was "extremely concerning", prompting its stock to slump 57% on Thursday.

But Thus chief executive William Allan said his firm was weathering the downturn in the telecoms sector.

Stronger margins

"Against challenging market conditions we have achieved continued growth and strong margin improvement," he said.

Total sales for the October to December period were worth �75.3m, up 26% on the same period of the previous year.

Operating losses narrowed to �10.8m, or 22% below the level of the same period last year.

Profits before interest, tax, depreciation and amortisation were �6.6m, compared with a loss of �4.7m a year earlier.

This was also about half a million pounds more than the previous three months.

Thus had pledged to become earnings positive in the second half of the year.

Parental support

Scottish Power last month renewed its support for its offspring by cancelling debts of �275m in exchange for more shares in the still loss-making company.

The debt-for-equity swap helped Thus to secure new bank loans worth �90m from Royal Bank of Scotland and other lenders.

However, Scottish Power has made it clear it hopes eventually to sell its shareholding in Thus.

At 0830 GMT, Thus' shares were up 3.5% at 37p, but later fell back to 36.5p, up three quarters of a penny, by 1015 GMT.