Internet services group Host Europe revealed impressive results for the year to 31 December, as plans to look for French and Italian acquisitions came to the fore. Elliott Davis reports.

Revenue for the period soared by more than 200 per cent to £5.16 million (£1.53 million), while the pre-tax loss of £1.2 million (£187,000) was some £300,000 lower than market forecasts. Growth is showing no signs of slowing either, with January and February successively breaking sales records and more than three-quarters of clients renewing. 50 per cent of all revenues are derived in this way.

The encouraging signs did not end with the financials, with the number of domain names registered doubling to 76,000 in just six months. Credit for this has been linked to Host's 123-reg.co.uk website, which, having been launched in August, is claimed to be the cheapest service of its kind. With the site establishing a large base of clients, chief executive Abby Hardoon explains that the selling of higher cost products such as e-commerce and web hosting services will follow.

Having recently purchased German peer One-2-One (nothing to do with the UK mobile phone network), chief operating officer Frank Rejwan also notes that the group has turned its attention to identifying similar opportunities in Italy and France.

Between them Germany, the UK, France and Italy are expected to account for around 73 per cent of a £5 billion European market by 2004. Hardoon, however, refused to confirm whether negotiations are under way with suitable companies, simply stating 'we're always exploring opportunities'.

Despite the positive news, the shares slipped 5 per cent to 2.25p on thin trading.

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