Exchange rates costs have plunged Dundee petrol pump and electronic controls manufacturer Tokheim UK further into the red.
The pre-tax loss at the company, now part of US-based industrial conglomerate Dover, sank 31% to £4.9 million in the 12 months to April 2015.
Turnover was up 9.2% to £79.5m but a £10m rise in sales costs caused a £3.5m operating loss, slightly worse than last year.
The previously French-owned firm is one of Dundee’s largest employers with around 450 workers at the West Pitkerro industrial estate.
Director Long Nguyen said sales of dispensers rose 6% to £64m, with improvement in Germany, Spain, Belgium, the Middle East and Africa.
Sales continued to decline in Eastern Europe and Africa, however, with service revenue remaining consistent following demand for non-contract works.
He continued: “An operating loss of £3.5m was recorded, compared to £3.4m in the previous year.
“The continued losses can be attributed to exchange rates within a tough trading environment combined with one-time costs associated with new product introductions.”
Mr Nguyen said the firm managed its competitive trading risk by developing close relationships with customers.
By focusing on bringing extra value to customers through innovative, high quality, value-for-money products and services, Tokheim UK aimed to build its competitive advantage.
The credit risk was managed by agreeing payment terms in advance and applying credit control procedures.
He added: “A large proportion of the company’s sales are euro-based and so the company has exposure to movements in the euro/sterling exchange rate.
“The company limits this risk by maximising the mix of euro purchases. The remaining risk is managed through group treasury services.”
The Tokheim Group agreed a $465m sale to US-based industrial conglomerate Dover last month.
Tokheim said at the time that all Dundee staff would transfer to Dover and the factory would continue to operate as normal.
Tokheim chief executive Baudouin de la Tour said a “strong partnership” with Dover could boost its sales and service divisions, which are not being sold off.
In a joint statement, local management said: “This is great news for our business in Dundee, opening up new opportunities for both our manufacturing and sales and service operations.”