The UK-listed company, which also suffered from increased costs due to a £300,000 Drupa spend, said that results had been adversely affected by currency movements of both the pound and the dollar.

In addition, poor customer confidence following the company's debt-for-equity swap, along with the administration of its main French manufacturing unit last month, led to a drop in orders.

"Certain customers have delayed orders until the long-term future of the group is clearer," said chairman Marc Maes.

Revenue for the first nine months rose 15% to £21.7m, fuelled by new equipment sales and recurring revenues.

Kit sales stood at £6.3m, a 29% rise over the same period last year, while recurrent revenue came in at £15.4m, representative of a 10% growth.

Nipson's gross profit came in at £3.2m, which although 30% higher than the same period in 2007, was still "significantly lower than anticipated".

The group's operating costs increased to £6.8m, including the £300,000 Drupa outlay. Nipson also announced from 1 January 2009, it will report its results using the euro.

Last month, the VaryPress manufacturer placed its main operating subsidiary into the Redressment Judiciare, the French equivalent of administration.

The move followed a debt for equity swap which saw Creacorp, an investment company with ties to Xeikon manufacturer Punch Graphix, take a 41.8% stake in the business.

Maes said: "Despite the difficult situation of the French subsidiary, the group is continuing to produce machines, spare parts and consumables, and continuing to provide a maintenance service to customers either directly or via its agreed distributors."