The privately-owned telecoms company, Pure Telecom, has predicted revenues of €8 million for 2006, with earnings forecast at €550,000.

The Irish telecoms provider, which supplies telecommunications services to business customers, said this year's figures were 25 per cent up on 2005's revenues of €6.4 million and earnings of €411,000.

Paul Connell, a director of Pure Telecom, said he was convinced his company's clear focus on profitability and not "customer grab" had paid off.

Mr Connell said the firm's aim has been to make money with a profit-driven approach, which was one of the reasons it stayed away from providing a residential service. "The statistics will tell you that it costs €100 to acquire a customer in that space. You'll make €5 a month out of that individual, and Comreg's figures show they will switch again every 11 months on average. So you'll be lucky to get back the cost of acquisition before they leave."

Mr Connell believed the recent events in the telecoms sector, including the problems of Smart, have been unfortunate for the industry, but also come as a salutary warning to companies. "I go out and sell broadband to my customers - I know how much a broadband connection costs me, I know what I'm going to have to sell it at to actually cover the costs of having a customer care team there to be able to provide the service. Now anyone who's going out there and selling 'free' line rental or 'free' broadband or whatever is basically on a short-term approach or strategy."

Pure Telecom intends to use its profitable base as a springboard to grow the company organically and by acquisitions over the coming years. "Over the next few years our intention is to remain strong and be in a position to acquire businesses that come our way," said Mr Connell.