Internet technology group Bright Station yesterday postponed indefinitely the flotation of Smartlogik, its knowledge management software division.

The company, run by entrepreneur Dan Wagner, had intended that Smartlogik would make its stock market debut at the start of this year, but changed its mind because of hostile market conditions for technology companies.

"The flotation of Smartlogik is planned for when market conditions improve," Mr Wagner said.

Bright Station reported an operating loss on continuing operations of £16.8m, excluding exceptional items, for the year to the end of December.

Losses for the quarter were £6.7m, excluding an exceptional cost of £3m, compared to £4.6m for the previous three months.

The firm said losses were due to expansion and invest ment in technology and employees. Revenues for the year were £8.5m, compared to last year's figure of £9.3m.

Bright Station's business portfolio includes the Sparza e-commerce firm, which took on the technology used by failed e-tailer boo.com, and OfficeShopper, where revenues grew 79% over the year to £1.6m. Bright Station has £16m in the bank, which Mr Wagner said was "more than enough" to take the group to profitability in early 2002.