Yeadon-based Infoserve Group, which helps consumers search for small firms on the internet, increased turnover by 18 per cent and reduced losses in the six months to September 30.

Infoserve provides UK businesses with online marketing products through partnerships with the two leading internet search engines, Google and Yahoo.

Group turnover was £2.65m compared with a restated level of £2.24m in the same period of 2007. The cost of sales was reduced by £490,000 through improved productivity from sales executives and pre-tax losses were reduced by £1.35 million to £600,000.

Since the half-year end Infoserve extended its loan facility by £250,000 and achieved record sales in October of £542,000, and sales in November had continued well.

The company also launched a major recruitment drive for up to 70 new sales executives by mid-2009.

Inforserve confirmed that discussions about an acquisition of the company were at an early stage.

Steve Barnes, chief executive, said second-half trading had started well.