BUS maker Optare has announced a surge in sales but losses of almost £5million after a ‘challenging’ year.

The Blackburn firm increased turnover after a boost in its order book and said a raft of changes at the business had left it ‘well-positioned’.

But its losses and debts of £7.7million have made bosses cautious for the future.

In its annual results for the year ended December 31, 2009, Optare, based in Lower Philips Road, said a raft of painful measures had helped the firm survive the recession.

It slashed its Blackburn workforce from 320 to 210, drove down other costs and scrapped a planned move to the Shadsworth business park.

However, thanks to deals such as a bumper £13million order from Greater Manchester councils, Optare increased turnover from £53.5million to £79.8million - a 49 per cent rise.

That was based in part on its order book growing from £8.8million last September to £25.4million by last month.

But the business still ran at a pre-exceptional operating loss of £4.9million, down from £5.5million the year before.

Chairman John Fickling said: “Although 2009 proved to be a challenging year, it has also been a year of great change and progress.

“I believe that the group is now well-positioned to capitalise on any uptick in the market and can look to the future with confidence.”