The business, which is part of the pan-European Paragon Group, recorded an operating loss of £57,000 (2009: £1m profit) and a pre-tax loss of £233,000 (£1.2m profit), despite an 11% increase in turnover to £45.4m following its acquisition of Ward Knowles.

Debt in the form of loans to the company increased from £5.3m to £6.5m, including around £2.5m due by 30 June 2010 and a further £2.5m due in the following 12 months to 30 June 2012.

Meanwhile, in an unrelated matter, former group marketing and sales director Iain Black has stepped down from the company to pursue "entrepreneurial interests outside of the company".

A spokeswoman confirmed that Black had resigned as a director of the Paragon Group and its subsidiaries as of 1 April.

She said: "Iain is currently on garden leave and will continue to work for the company until 31 July 2011."

"Iain has decided to develop his entrepreneurial interests outside of the company. We would like to thank [him] for his hard work and dedication during the past 12 years.

"On a separate front, like any other professional company in our sector, Paragon is reviewing costs in order to remain competitive and will continue to do so in the future."

Black said: "It has been entirely my decision to leave. I've been going at full throttle for 25 years, having spent time at Adare and the last 12 years at Paragon. It was about choosing the best time to leave."

He added that he was now looking at businesses in the sector either to buy or buy into. "The sector offers lots of good opportunities to create value," he said.