The firm was founded by Scottish Power in 1994

Earnings before interest, tax, depreciation and amortisation fell to �18.1m ($33m) from �20.6m, with turnover up 13% to �177.5m.

In September, the company issued a profits warning due to cut-throat competition for corporate accounts.

Rivals are resorting to discounts and rebates to secure business, Thus said.

Prospects

The Glasgow-based company said it remained "cautious" on prospects for the second half.

However, Thus said the renewal of existing contracts, along with some new accounts, will ensure it delivers earnings growth in the second half.

Chief executive William Allen told the BBC: "We haven't got into financial distress.... and we haven't had to seek help through financial restructuring or bankruptcy or other means."

The company said its number of UK broadband clients rose by 77% in the first-half, while clients using ethernet computer networks jumped by 74%.

During the same period, Thus lowered its net debt to �33.3m, down from �40.9m, with its cash reserves rising to �27.7m.