Fibernet - the network services outfit that operates in the UK and Germany - has increased turnover and narrowed losses.

Revenue for the year to the end of August was up £5.7m to £47.9m compared to £42.2m last year. At the same time the company made a loss before exceptional items of £4.4m which is a modest improvement on the £5.7m deficit made in 2004.

Publishing its full year results today Fibernet admitted that "2005 has been a tough year" for the company. Despite racking up what it describes as an "excellent" final three months new orders for the year were down on last year from £53.6m to £48.1m.

And although contract renewals are taking longer than usual Fibernet is still pleased with the progress made over the last 12 months.

Fibernet admits that conditions in the telecoms sector "have continued to be uncertain in 2005, particularly in the volume fixed line voice market", but remains confident it can continue to narrow losses and eventually turn a profit.

By late morning shares in Fibernet were up 1p at 63.6p. ®