Losses up but iTouch seeks buys

TEXT and mobile messaging outfit iTouch, part of Sir Anthony O'Reilly's media group, is hunting for takeover targets even though it today blamed widening losses on its recent acquisitions.

Chairman Ivan Fallon, armed with £39m remaining from iTouch's float two years ago, said he was looking at consolidating the group's operation and was currently 'in discussions' to buy more mobile information companies in Britain.

The group has already recently secured music website WorldPop, founded by former Radio One DJ Peter Powell, from administrators, and Thus's interactive voice unit for £3.5m in cash.

ITouch blamed acquisition related costs for the 20% increase in operating losses at the group in the first quarter to 31 March to £4.7m. Sales rose 6% against the previous three months to £5.4m. Losses are not expected to increase further, and the group promised to move into the black still holding a 'healthy' cash pile.