Last year was a tough one for businesses involved in IT as many firms delayed projects until the Y2K problem had been resolved.

Although 2000 got off to a slow start for the industry, things are now moving ahead at a fast pace.

One company starting to benefit from a more optimistic IT sector is Brighton-based Eurolink Managed Services (EMS).

Formed last year when the business was demerged from Eurolink, it is headed by David Wood, who joined as an account manager in 1984.

He started EMS under the name Remote Development Facility in 1994, offering to manage and maintain IT departments on behalf of clients.

He said: "RDF Consulting was a completely separate subsidiary of Eurolink catering for project- related work as opposed to providing personnel, which Eurolink specialises in.

"We remained a division up until last year when the decision was taken to demerge the part of the business for which I'm responsible.

"We set it up as a totally separate company with its own directors and its own management, although it still has an arm's length arrangement Eurolink.

"At the same time, a decision was made that it would be appropriate to float the company on the Alternative Investment Market (AIM).

"One reason was to raise funds to invest in new technology, which is what our business is all about."

The company took on finance director Keith Molineaux to guide it through the process.

Since the flotation, IT stocks have been the most volatile in the market, with mergers and acquisitions and the millennium bug casting its shadow over the industry.

But having recently published its results, the board of EMS was pleased with the progress the company had made.

David said: "Having worked in a private company for 17 years, there has been quite a culture shock for me since I took on the role of managing director of a plc."

Earlier this year, Tony Antoniades, the founder of Eurolink and the major shareholder in EMS, decided to step down as chairman of EMS.

David said that in spite of rumours of a boardroom bust-up, the decision had been made by Mr Antoniades.

"Mr Antoniades is a colourful character and we had no problem with him as chairman.

"But there was clearly a conflict of interest with him being the major shareholder in the company while still running Eurolink down the road.

"We do use the services of Eurolink when it comes to providing personnel for some of the projects in which we are involved."

"But the relationship has to be at arm's length.

"It was deemed by Mr Antoniades that it was a conflict of his interests to remain as chairman of the company.

"It was a mutually agreed thing."

A year after the company floated on the AIM, there are still no immediate plans to seek a full listing. But David said it will come in the fullness of time.

"One of the reasons of floating the company was to enable it to grow both through acquisition and organically.

"Although there have been no acquisitions in the last year, that doesn't mean to say there won't be any in the future.

"It's just finding an organisation that is the right fit for the type of business we are and that will give us a bit of a platform to help us move into the main market when we feel the time is right.

"The volatile market makes it very difficult."

In the last few months, there has been an upturn in business at EMS.

One of the most significant moves has been the opening of offices in Livingstone, near Edinburgh, where it has contracts with companies in the city's financial sector.

"We are still a very small, very young company but I feel we are a company to watch.

"The upswing in the business has now started although we did expect it to start three months earlier. But it is here now and we are well placed to make inroads."