The company has switched to focus on business customers

Thus shares have suffered badly in the gloom surrounding the telecoms sector, tumbling from a peak of 844p last year to 33p at the start of trading on Wednesday.

The company - which owns Demon Internet - reported sales in the three months to 30 June of �67m.

It reduced negative first-quarter earnings from �8.7m last year to �2.4m and predicted the full-year figure would be positive.

Mr Allan said the group's switch from building infrastructure to exploiting its assets was producing results.

He added: "The deal flow and improved order book in the business gives the board confidence that the company will continue to deliver on its strategy and meet expectations for the full year."

Thus, which is partially owned by Scottish Power, bucked the negative sentiment surrounding the tech sector when it announced strong growth in revenues in its full-year figures in May.

Contract wins

Mr Allan said the prospects for Thus remained strong, with a number of new customers due to be announced in coming weeks and contracts with the BBC, Royal Bank of Scotland and London Electricity already expanded.

He added: "Though market conditions remain difficult in the sector, our focus on quality service is now reaping rewards."

Within the business, data and telecoms revenues rose by 4.3% compared with the previous quarter to �31.6m while internet revenues from core business services increased 14.3% to �8m.