Telecoms group Energis has secured a key multi-million pound contract extension from Freeserve with a little help from new boss John Pluthero.

Energis will manage the internet service provider's narrowband network, used by 2.5 million customers, for at least the next three years.

Mr Pluthero joined Energis as chief executive from Freeserve in September to help former Conservative MP Archie Norman revive the business.

As chief executive of Freeserve, Mr Pluthero told the telecoms group a year ago the internet service provider (ISP) wanted to revise the network deal or find a new partner.

His knowledge of Freeserve's needs and requirements helped his new employers understand what the ISP wanted to achieve.

Mr Pluthero said: "This is a big deal for Energis and an important contract for Freeserve.

"The big thing for both companies is that it's now agreed."

Although the actual value of the deal is not being revealed, it is worth hundreds of millions of pounds to Energis.

The agreement is a further boost to the group as it looks to recover from its financial collapse five months ago.

Weighed down by spiralling debts, the business was bailed out by its banks which took control of the group and parachuted in Mr Norman as chairman.

Bondholders and other creditors took a 55 per cent stake in the company, with staff and management 25 per cent and the banks the remaining 20 per cent.

Mr Norman said the deal had proved the group's critics wrong and completed the first phase in the renewal of Energis.