Redbus puts Prague web hotel on ice

DATA centre group Redbus Interhouse has further cut its already-curtailed building programme by halting plans to build a new internet hotel in Prague. Chairman John Porter said it had decided to delay opening the planned 64,000 square feet facility amid a difficult time for an industry facing sluggish prices and demand.

The group has already deferred a combined 148,000 square feet of new facilities planned for Munich and Luxembourg, and Porter said: 'Prague is in the build programme but without a date on it'. He said the company will build its third London centre.

Turnover fell and losses widened over the past three months. With positive earnings 15 to 18 months away Porter wants to conserve as much of Redbus's remaining £40m in cash as possible.

Small, privately-backed rivals continue to fold, but he said overall prices in the sector are still falling. Redbus paid £230,000 to advisers who worked on its abortive £50m takeover of rival Telecity in August. Quarter-on-quarter pre-tax losses to 30 September rose to £2.43m on revenues to 30 September down 2% at £2.31m.