Thus: Our banks are comfortable

SCOTTISH POWER'S telecoms offshoot Thus sought to distance itself from its ailing peers after presenting third-quarter results showing earnings and refinancing plans are on track.

Problems at Energis and Fibernet come at a delicate time for Thus, which is in the midst of a funding plan underwritten by its parent and supported by Royal Bank of Scotland.

ScotPower, which owns 50.1% of Thus, is underwriting a 573m share open offer priced at 48p per Thus share. That should see ScotPower convert about £275m of its loans to Thus into equity. A further £90m banking facility is part of the deal. The package should take Thus to cashflow positive in 2004-05.

Commenting on whether Energis' profits warning on Thursday had prompted nervous calls from the banks, chief executive William Allan said: 'They wouldn't be doing it unless they felt good about our prospects. The banks have been reassured by these numbers and are comfortable with what we are achieved. The announcements yesterday by Energis and this morning by Fibernet again clearly differentiate the quality of revenues we have in our business.'

Third-quarter sales rose 5% on the previous three months, and 30% on the year-earlier period, to £74.5m. Core earnings were £6.6m, from £4.7m a year earlier and £600,000 in the preceding three months.