Actual occupancy at Birmingham's Institute of Directors Hub has increased by almost a third, as owners Stonemartin tripled turnover and posted narrower losses for the year to March 31.

The London-based serviced offices group said it was " delighted" with the Birmingham market, where actual occupancy at the IoD Hub now stands at 78 per cent - up from 51 per cent in 2004.

The group, which said the performance was in line with its internal expectations, narrowed pretax loss to £1 million from £3.4 million a year earlier. Turnover jumped to £9.4 million from £3.4 million.

At the operating level, the loss narrowed to £2.2 million from £3.3 million.

Managing director Colin Peacock was upbeat. He said: "The Birmingham Hub has really developed as expected at the anticipated level.

"We've been really pleased with the city - we have nice occupants and a terrific team managing the building."

Although Mr Peacock was unable to comment on a timescale for Stonemartin's entry into profit the firm's brokers, Tether & Greenwood, predict the company will be cash positive by 2008.

Outside the partnership with IoD, the company said it may look towards the management of smaller buildings on behalf of other organisations.

However, Mr Peacock stressed that the company's primary focus would continue to be the development of IoD Hubs in major business centres across the country.

The project will, however, be longer as some of the Hubs will have to be built. If we can't find the scale or quality of property that we require, then we are not adverse to waiting for something new to be built."

Mr Peacock also said the firm would consider extending its IoD office provision in areas with excess demand.