Telecoms services business, Hello Telecom, has announced it continued to trade profitably on an EBITDA basis during the half-year ended 30th September 2011 and that EBIT profits were achieved in four consecutive months. The group said it has continued to develop its product offerings and that its distribution channels continue to grow with “a number of promising avenues being developed”.

For the half-year ended 31st March, the group posted a pre-tax loss of £15,009, which compares to a loss of £13,027 on the comparable period a year earlier, as turnover declined by 2% to £617,985 and administrative expenses rose by 4% to £213,189. No balance sheet or cash flow statements were provided.

Currently trading at 7.5p, Hello Telecom is capitalised at £2.2 million. While the move into profitability is encouraging, the firm really needs to prove it can post consistent gains before we will be attracted to the shares. Avoid.