The Internet Technology Group (ITG) has reported what analysts have termed healthy results, despite losses, for its interim period ended 30 April, to back its attempt to break into the FTSE.
ITG, which was founded by PC World's originator, Jan Murray, reported losses of £1.59 million, up from losses of £170,000 for the same period last year.
However, that period had benefited from the sale of property for £973,000.
The results were in line with analysts' predictions and operational losses were minor, creeping up from £1.17 million to £1.22 million. Sales more than doubled to £8.85 million.
The losses were attributed to heavy investment in the group, including the acquisition of an ISP in the Netherlands and expansion of the European operation, as well as a significant increase of its sales force in the UK.
Jan Murray, chairman of ITG, said he was pleased that operating losses were in line with expectations. 'Significant investments cannot be incurred without short-term impact on the profit and loss account,' he said.
ITG will attempt to leave the AIM index for a full FTSE listing by the end of the year.
The group also reported that it had embraced the free internet access market, providing services to the Ministry of Sound, MicroWarehouse and National Association of Specialist Computer Retailers (NASCR). ITG will also announce its fourth such contract next week with a leading retailer.
Murray added: 'We remain confident that the real growth in the internet market is yet to come. To that end, we have concentrated on expanding the systems, infrastructure and engineering team so we can sustain growth.'
Nick Gibson, analyst at Durlacher, said: 'The move is encouraging. ITG has handled the change in the dial-up market towards free access well and is on top of its game.'
ITG was down 5p at 156.5p on AIM.
CEO Graeme Watt admits the trading climate is becoming a little more uncertain as he and CFO Graham Charlton reflect on the reseller's £1bn year
Security vendor appoints Infinigate as part of strategy to grow channel business
As the trade war between the US and China ramps up, Marian McHugh investigates what impact this will have on UK prices and how partners are adapting to higher costs
CRN quizzes Avaya CEO Jim Chirico on the firm's progress after exiting Chapter 11 earlier this year, and listing on the stock exchange