MessageLabs, the utility messaging service, said it is ready for an IPO if and when market conditions improve.

Chief finance officer Stephen Chandler told the Reg: "We've been preparing for an IPO for several years; we've strengthened the board, moved to International Accounting Standards and if the markets improve we'll be ready. But we're in a strong cash position even without such an event." MessageLabs data centres scan emails for malware before sending them to recipients - the firm has 18,000 business customers.

Observers like Richard Holway have suggested that a trade buy is a more likely outcome for MessageLabs.

Chandler said: "We obviously can't rule out a trade buy either - we talk to lots of people in the market but our focus is on growing organically - although we had a good first half we had an even better second half."

MessageLabs converted a £5m loss last year into a £5m operating profit this year. ®

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