NetServices to post loss

NETWORK provider NetServices warned today it will make a loss for the financial year but added it is poised to win new business.

The company said it expects to rack up operating losses for the year to August 31 of £200,000. It added that it has cash balances of £600,000.

In a statement to the market, NetServices said it had made good strategic progress in the second half by increasing its level of Cisco accreditation, which it believes will provide a significant boost for winning new business. 

It blamed the losses on the fact that, as highlighted in its interim results in February, establishing and developing the necessary relationships to monetise its MSCP capability would take time.

NetServices added that it has begun negotiations which may or may not lead to a reduction in the contractual obligation relating to its supply contract with Fibernet UK Limited.

The group will announced its preliminary results in late November.