Cable operator Telewest Communications said the plunging stock markets were obscuring the progress it made last year.

The group has seen its share price plunge from 450p to 111p in under a year after being caught up in the new economy bloodbath that has struck telecom and tech stocks on the London Stock Exchange.

Chief executive Adam Singer said, however, Telewest was now "exceptionally well placed" to benefit from the revolution in broadband technology in the UK.

He said the company had already hit its digital subscriber base of 500,000 and added the set-top box supply problems it had last summer were "history".

Telewest's financial solidity had been underlined by a £2.25billion debt restructuring deal signed with 26 global banks earlier this week, he added.

"Cable is in a unique position to deliver bundled services because of the reach and quality of our network," he said.

"We still have a long way to go in improving products and services, but there is now a permission to believe we can do it."

Telewest made a pre-tax loss of £701 million in the year to December 31, compared with a loss of £530million the year before.

Earnings - stripping out operating costs - rose, however, by 11 per cent before exceptional and goodwill costs to £247million, up from £222million the year before.

Turnover was also up, rising 42 per cent to £1.1billion, fuelled by a 21.5 per cent growth in revenue from Telewest's consumer division, where more consumers were deciding to take more than one of the company's cable TV, telephone or internet services.

Mr Singer said the transformation from analogue to digital business had been like "changing jobs, moving house, getting married and giving birth all in one year", but said "the results show we made it".

The City reacted to the results with an immediate five per cent drop in the share price.