A TELECOMS company headquartered in Basingstoke is in an upbeat mood after halving its losses in an industry that is fighting back from a downturn in the technology sector.

Losses for Fibernet, which was founded by chief executive Charles McGregor and has its headquarters on The Viables, were reduced by more than £4million to £5.7million in its financial year, which ended in August.

This is compared with a loss of £10.3million in 2003.

Turnover from its continuing operations in the bespoke network sector was up £5.9million to £42.2million compared with £36.3million in the previous year.

But Fibernet's cash balance has fallen back to £15.7million from £24.9million, although the company remains confident that the funding is adequate for its current business plan.

Mr McGregor said: "The year 2004 has seen significant achievement for Fibernet. Our continued focus on winning new customers, maintaining a high rate of renewals, cash management and cost control has delivered a strong performance.

"In the year up to August 2003, we reduced losses before exceptional items through cost-reduction measures. In the year to August 2004, we have reduced such losses further through revenue growth and gross margin improvements."

Mr McGregor added that Fibernet was in a position to reduce losses even further in the next year and return to sustained profitability.

And the 2005 financial year has got off to a good start, with contracts signed by customers in the banking and pharmaceutical sectors.

The chief executive added: "We continue to focus on niche markets where we can demonstrate clear competitive strength.

"We have the financial resources needed to continue to execute this strategy and are optimistic for the future."

Looking back, Mr McGregor said: "Against a continuing background of relative uncertainty in the general telecommunications market, I believe that Fibernet's continued focus on its market niche has produced a very satisfactory result for the year."