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Thus - the Scottish telco that also operates under the Demon internet brand - remains upbeat despite having to operate within the "challenging competitive dynamics in the UK telecommunication market".

In a trading update published today the telco said its business had continued to grow especially in areas including broadband and converged services. Oh, and it's also signed up a number of corporate punters.

However, despite this assurance it's acknowledged that margins remain tight as customers migrate from dial-up services to broadband.

As a result the telco continues to keep a tight control on operating costs.

In a statement Thus boss William Allan said the company "continues to respond vigorously to the challenging competitive dynamics in the UK telecommunication market" but remains confident of "continued revenue growth and cash generation over the current year".

Shares in Thus were up 0.5p at 16.5p in early morning trading. ®

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