Online retailer lastminute.com's bid for profitability remained on course today after losses narrowed in its most recent financial quarter.

The group said it had made further progress during the three months to June 30 and was poised for more growth in its busiest trading period.

Losses during the third quarter before tax and exceptional items stood at £4 million, compared with £9.3 million a year earlier and £5.3 million in the previous three month period.

Chairman Allan Leighton said: "These results demonstrate the further shift towards group profitability and positive cashflow. All metrics show underlying improvement and development."

The latest figures come three months after lastminute told the City that its operations in the UK and France had broken into profit ahead of time.

Analysts expect the company to report positive underlying earnings in the current quarter, which is dominated by the holiday period.

Today, the company said the UK and French businesses remained on track and had increased operating profitability during the third quarter.

Underlying losses in the third quarter were down to £1.9 million, an improvement on the £3.2 million seen in the three months to March 31.