THE serviced offices division of MWB Group saw a slight increase in occupancy in the second half of 2010, but also saw losses widen.

MWB Business Exchange saw revenue for the six months to December 31 rise to £55.1m from £54.3m.

Pre-tax losses were £2.8m, against £2.2m in the first half of the year.

Its portfolio of serviced office space includes Silkhouse Court, in Liverpool city centre, where it offers 114 workstations.

MWB says that, during the half-year period, total occupancy improved “marginally” to 84%.

The division’s chief executive, John Spencer, said: “There is little doubt that the last six months of 2010 were more demanding than anticipated, with the business environment remaining challenging.

“As a result, our recovery has been slower to materialise than we initially planned.

“Workstation rates, however, began to stabilise and there were some early indications of more positive market conditions, particularly in our core area of activity – central London.”

Mr Spencer added that the second half of 2010 witnessed a stronger commercial property lettings market, driven by an improving economic climate which, coupled with a lack of supply of Grade A space, is now seeing rents and therefore workstation rates improve in central London.

“One of our key focuses has been to re-balance our revenue streams, in order to reduce our exposure to a small number of market sectors,” he said.

“I am pleased to report that we are now beginning to reap the rewards of this strategy.”

The Daily Post reported earlier this week that MWB Group had reported widening losses for the half-year period, with pre-tax losses increasing from £7.8m to £11.6m.

The company’s hotels division operates the Malmaison, in Liverpool’s Princes Dock. MWB is currently in talks with its lenders to reduce its £302m debt burden.