Outsourcing group Miller Fisher has reported losses of £0.6m for the first half of 2001.

The company, which released the interim figures two weeks late, saw its turnover fall by 11% to £26.4m from £29.6m last year.

Miller Fisher's results showed an improvement on the same period last year, which saw losses of £1.2m.

The 2001 results were aided by the sale of subsidiary Homecare Insurance for £4.5m and an 8.3% cut in operating costs to £21.3m from £23m.

Miller Fisher said it had reduced its borrowing by £5m to £24.8m and it would continue to reduce borrowing throughout the year, especially with the possibility of higher interest rates later in 2001.

"Apart from a few loose ends, the restructuring is substantially complete," said Miller Fisher's finance director, Richard Horton. "The business is now in better shape. With our cost savings in place, our focus now will be on revenues and on restoring the business' margins."

Horton would not be drawn on rumours that Miller Fisher was the subject of a hostile takeover bid by rival Capita. He said that a tie-up with another company was not on Miller Fisher's agenda.

Miller Fisher appointed HSBC last year to look at the company's future and was in merger talks earlier this year with another firm, believed to be Capita, until talks broke down after just one month.