BOSSES at Fibernet, the Basingstoke-headquartered bespoke network services company, are in an upbeat mood despite annual results showing pre-tax losses of £5million.

But the loss could be interpreted as a turnaround in the Viables-based company's fortunes, as its annual figure in 2002 was a massive £92.4m in the red.

The results for the year ending on August 31 showed turnover from continuing operations as £36.3m, just fractionally down on the previous year.

But the value of new contracts signed up with Fibernet has jumped up £21.3m to £58m, compared with the previous figure of £36.7m. Long-term contract revenue was also up £25.9m to £97.8m.

Fibernet is now operating with a cash balance of £24.9m which it believes gives it strong funding for its current business plan.

Founder and chief executive Charles McGregor said: "2003 has been a year of significant achievement for Fibernet.

"Our focus on winning new customers, maintaining a high rate of renewals, cash management and cost control has delivered a strong performance.

"Fibernet is well-placed to build on the progress we have made over the last 12 months and we continue to view the future with optimism."

Mr McGregor explained the results were better than expected at the beginning of the year and were achieved despite the unfavourable climate that has prevailed generally in the telecommunications sector.

He added: "As we start our new financial year, the pipeline for new and additional business continues to be healthy."

He believes that a return to sustained profitability is now in Fibernet's sights.

A confident Mr McGregor added: "The markets for our services and the pipeline of business both remain strong, which, together with our considerable financial reserves, place us in an excellent position going forward."