Bar and restaurant group Mezzanine is to sell off or float its internet dance music business, mezzmusic.com.

The company, which started mezzmusic in February, announced its plans yesterday as it reported interim results for the 14 months to June. Executives said they would announce plans for the internet arm of the business in the next couple of weeks.

"The atmosphere around dot.coms, particularly in the music sector, is getting that little bit brighter, so we should make a decision and announce in the near future a separation of some shape or form," said Roddy Sutherland, the chairman.

The company delivered pre-tax profits of £572,245, compared with a loss of £641,000 in the comparative period. The figures were before exceptional items relating to the launch and development of mezzmusic.com.

The Smollensky's bars and restaurants that are now the group's focus is being rolled out. Described by Mr Sutherland as being like "an American Chez Gerard", another 20 are expected to open within two years. Mezzanine bought Smollensky's on the Strand in London last November.

Turnover for the 14 months rose to £8.7m from £3.8m for the 53 weeks to April 1999 but the company decided not to pay a final dividend because of investment across the business. The share price yesterday fell 2.5p to close at 21.5p.