ONLINE business-to-business site, Just2Clicks.com has revealed it is on an even-keel after embarking on a major cost-cutting exercise.

The Newcastle-based company has adopted a prudent approach after recognising in the summer that the dot.com bubble was set to burst.

North-East entrepreneur Karl Watkin, chief executive, said the policy was paying off, although Just2Clicks announced today it had seen lower than expected trading levels.

It also recorded a pre-tax operating loss of £37.8m because of the cost of writing-off acquisitions.

But Just2Clicks said its cash balances remained strong as it announced its maiden full-year figures since floating on the Alternative Investment Market in February.

Mr Watkin said: ''We recognised in June that things were turning off and we immediately clamped down on our cash spend.

''A lot of people gave us flak for doing it, but without question it has proved to be the right road.''

Major savings included advertising, where the company spent less than a £1,000 during the year.

The firm, which runs a series of websites to enable business-to-business trading, said word-of-mouth from users served as better publicity.

Mr Watkin said the company was determined not to go the same way as a number of high-profile Internet firms which are now facing financial difficulties.

In the last week alone, Breathe.com has been sold by administrators, while LetsBuyIt.com has applied for protection from creditors.

Mr Watkin added: ''We have continued to manage effectively our cash position which is vitally important given the experience of other Internet related industries.''

Just2clicks, which raised £50m from its AIM flotation, said it had £45.2m remaining in cash and reserves.

While the company generated turnover of £1.7m during the 15 months to September 30, it recorded a loss before exceptional items of £3.9m.

Pre-tax losses were affected by £33.9m being written-off in the company accounts, following a series of acquisitions.

Mr Watkin declined to say when the company would break even, but stressed the prudent approach would continue.

He said: ''The strength of our current cash balance gives us plenty of scope to continue to invest in the growth of the business."

Just2Clicks also announced that it planned to change its company name after recognising that most users already called it J2C.

It is also to embark on a search to match high-profile partners to each of its business-to-business websites.

A joint venture with cement group Blue Circle - which earlier this week was taken over by French group Lafarge in a £3.1bn deal - has been struck for its e-cement.com site, but others backers are still needed as the company comes to terms with lower than expected transaction volumes.