The disappointing reasults come just months after the company announced "positive signs of recovery" following a 30% rise in revenue.

Overall, the Varypress manufacturer posted a pre-tax loss of £3m on sales of £14.2m. However, the gross profit was up 36.6% to £2.4m.

Robert Cahill, group finance director, said that much of the loss was attributable to unfavourable currency fluctuations.

He said: "We produce in euros and so have been hit hard by the fall of the dollar, however, its recent rise is encouraging."

Recurrent revenues at the company increased by 10% and equipment sales leapt 35% with the equipment pipeline remaining strong.

"It is encouraging that machine sales are up," Cahill said. "Now we are reducing costs and improving reliability to show the market we offer the best machine in the market."

Cahill added that the exact nature of the fundraising had not been finalised but that it was more likely to come from an external investment fund rather than a rights issue.

Nipson interim results
Revenue: £14.2m (same period last year £12.2m)
Gross profit: £2.4m (2007: £1.8m)
Pre-tax loss: £3m (2007: £2.6m)
Equipment sales: up 35% on previous year