Netstore, the recently floated application service provider which specialises in small to medium-sized businesses, said yesterday it had tied up a partnership deal with a leading European telecoms company, which it did not name. A contract was signed with BT's Ignite unit in July.

Netstore allows companies to rent applications over the internet rather than install them on their own hardware. Shares in the company rose 4p yesterday to 136.5p following better than expected maiden full-year results. A turnover of £1.37m was reported against £800,000 last year.

Pre-tax losses widened from £1.1m to £4.9m, but broker Dresdner Kleinwort Benson said the company was on target to reach a profit by 2003.