Dimension slashes its losses

DESPITE no immediate pick-up in corporate IT spending, computer services provider Dimension Data believes a leaner cost base will move it into the black after its third consecutive year in the red.

Executive chairman Jeremy Ord said: 'We are cautious going forward - we have costs under control and we are positive that we will make a profit at pre-tax and operating level over the next year.'

Revenue for the year to 30 September was down marginally to $2.1bn (£1.2bn) from $2.19bn last year. Pre-tax losses after exceptionals narrowed to $398.6m from $2.6bn last year and $1.67bn in 2001.

Dimension's global head count reduced by 1400 to 7900, helping a positive cashflow of $51m.

Signs emerged of a turnaround in its US business - 20% of group revenues - which made an operating profit in September. The shares added 3/4p to 33 3/4p.