Thus keeps growing

Thus is predicting double-digit growth in turnover and a 50 per cent cut in operating losses as it moves into the close period before announcing its results in May.

In a trading statement, the telco also claimed to be free cash positive for the second quarter in a row – three months before its expectations. Thus' CEO William Allan said in the statement that he expected to move into "operating profit in the second half of the next financial year."

Thus is already acting as if the close period, in which it cannot comment on company activity, has started – two days before its official end-of-year on 31 March.

However, the company has seen a policy of expansion and cost cutting have good effects. At the beginning of 2003 it lost £30.8m in the first quarter, cut that to £10.2m in the second quarter and has kept on slashing.

And Thus claims to be accelerating away from the 10 per cent growth in turnover of its first half year. Allan pointed at significant contract wins with Virgin, Southern Water and Tele2 and said that existing customers were increasing their spending.

Scottish Power, Thus' erstwhile parent and major shareholder, announced in its trading statement that it had made $400m hedging the dollar last year.