Pre-tax losses grew to 2.1m compared to 1.37m year-on-year, while the digital print manufacturer's operating loss was at 2.2m compared to 416,000. The firm was, however, boosted by a 14% increase in turnover to 22.6m.

"In the fourth quarter both sales and margins will improve," said Nipson chairman Rimon Ben-Shaoul. "For next year the equipment pipeline is already very strong. With the benefit of sustainable and increasing recurrent revenues together with lower operating costs, Nipson's financial performance should be greatly improved."

The company added that the development of its new print head is "progressing satisfactorily" and is expected to be introduced onto new equipment from mid-2006.

Nipson is also aiming at reducing costs, which it expects to affect the financial results from 2007.