iTouch, the mobile information firm in which Independent News & Media holds a 50 per cent stake, made a pre-tax loss of £8.5 million sterling (€13.3 million) in the six months to June 30th 2002 This compares to a loss of £7.6 million in the first half of 2001.

The firm, which has operations in Dublin, London, Cape Town, Sydney and Auckland, also disclosed yesterday that it had cut 90 jobs over the past five months as part of a cost-reduction programme.

ITouch chairman Mr Ivan Fallon confirmed it had reduced staff from 465 to 374 by August 31st, but he said no jobs had been lost at iTouch's Dublin development centre.

Turnover at iTouch increased to £13.57 million in the six months to June 30th, 2002, up from £5.97 million during the previous year, boosted by growth in data messaging and acquisitions. The firm reported a loss per share of 3 pence in the first half of 2002, compared to 2.6 pence in the same period last year.

The company's cost of sales increased to £7.8 million, up from £2.7 million last year. Gross margins declined sharply during the second quarter, coming in at 36.4 per cent compared to 50.6 per cent in the first quarter 2002, as iTouch took on more lower-margin voice business during the quarter.

ITouch had net cash reserves of £32.1 million on June 30th, 2002 and said it was well on track to attain profitability ahead of expectations. Mr Fallon later said this should be achieved next year.

"We expect to make further acquisitions during the next 12 months to reinforce our core business," said Mr Fallon. "We've probably talked to 40 firms in the past year but these things take time to get started."

He said iTouch needed to get to the size where it was on the "radar screens" of investors. This would occur if it attained annual revenues of £100 million upwards, he added.