The figures for the year ended 31 December 2005, showed an operating loss of 3.9m compared to operating profit of 23,000 in 2004. Turnover for the year was 29.3m.

According to Nipson chairman Rimon Ben-Shaoul, the losses were down to one-off costs of more than 2m. That figure included costs of a patent infringement court case in Germany and the writing-off of stock relating to spares for older machines.

But Nipson's turnover rose to 29.3m compared to 28.4m in the previous year of that equipment sales were up 24% to 11.3m.

"2005 was a year of consolidation for the group and the board believes it has established a platform for a return to profitability," said Ben-Shaoul. "For 2006 we expect lower operating costs and are encouraged by the rise in equipment sales in the first two months of the year."