Telecom firm in market slump

Atlantic Telecom shares stand at just 15 pence each

Aberdeen-based Atlantic Telecom - which recently expanded into Europe - has reported mounting losses.

Eighteen months ago the company was valued at more than £1bn, now it is valued at just above £3m.

Atlantic revealed on Tuesday that it had lost £135m compared with losses of £33m for the same time last year.

When you start services in new areas it is not instantaneous profits, in some cases it can take years

Graham Duncan, chief executive

Its share price reached a high of £4.82 last summer, but now stands at 15 pence.

Company chief executive Graham Duncan said the poor market showing was not evidence that Atlantic Telecom was "on its last legs".

He told BBC Scotland's Good Morning Scotland: "The business has moved materially forward this year compared to last year.

"Last year we were operational in only four Scottish cities, we are now present in 10 German cities, in two Dutch cities and in Manchester, England.

"When you start services in new areas it is not instantaneous profits, in some cases it can take years.

Long-view approach

"I think you have to look at overall markets to be fair. At the end of the day share prices are subject to supply and demand and are driven by sentiment.

"Telecommunications is a medium to long-term business.

"There has to be time to develop the network.

"Demand has not changed in the last year, it requires an element of longevity and I would suggest that is the best approach.

"Atlantic Telecom is not on its last legs."

The group has about 22,500 residential customers in Scotland.