Thus was demerged from Scottish Power in 1999

Thus posted earnings before interest, tax, depreciation and amortisation of �18.1m ($31m) for the half-year to 30 September compared to �18m a year ago.

Turnover was up 5% to �174.5m, and its operating loss on continuing operations fell 75% to �5.8m.

Thus shares closed up 8%, or 1.25 pence, at 15.75p on acquisition talk.

Thus, which provides voice and data services, was demerged from Scottish Power in 1999.

The firm said market conditions would remain challenging for the second half of the year amid an aggressive pricing environment but said it expected continued growth.