Business and IT consultant Charteris lost an interim £305,000, but says its re-focus programme is bearing fruit.

Turnover at AIM-quoted Charteris fell by £1.8 million to £8.9 million in the six months to January, reflecting a decline in the company's established markets. After making £305,000 pre-tax in the year to last July on £20 million turnover, Charteris turned a previous interim pre-tax profit of £382,000 into a £305,000 loss.

Chief executive David Pickering says trading was in line with expectations and reflects the company's decision to invest in three specialised business lines: infrastructure optimisation, intelligent integration and 'customer centricity'. These new activities involve 'multi-channel retailing', such as helpingTesco develop its on-line ambitions, and, in a newly-won contract, advising high street computer game retailer Game on implementing a project to expand on-line.

Charteris' intelligent integration arm is helping businesses such as acquisitive Australia-based Macquarie Investment Bank execute back-office changes in acquisitions, including London bus operators. The company is also working with Microsoft UK - 'a very good client' - on its 'Dynamics' range, helping clients make changes, while its Scottish-based 'customer centricity' arm builds up its business.

Pickering, who claims Charteris has established 'big credibility' with financial service and public sector groups, says orders picked up in the second quarter as the new programme began to win clients. House broker Bridgewell sees full-year earnings before interest, tax, depreciation and amortisation of £300,000.

Floated at 90p in 2000, Charteris shares fell to 14.5p three years ago before rallying to 59p in early 2005. Now 21.5p, valuing the company at £9.25 million, they offer speculative recovery possibilities.