A rise in operating costs hit profits at leading chip and PIN payment technology firm Ingenico (UK) Ltd, whose northern European headquarters are in Fife.
Director Douglas Hogg said the secure payments systems company’s 2014 results were in line with expectations despite a challenging economic climate.
The French-owned group employs around 200 staff at Dalgety Bay, the base of its UK division where turnover rose 3.4% to £99.7 million.
The cost of sales went up 14.7% to £70m, resulting in lower gross and operating profit levels, and a pre-tax profit down 20.6% at £19.46m.
Mr Hogg said Ingenico (UK) Ltd further consolidated its leading position in payment terminals in northern Europe during the year with the continued roll-out of its latest product and solutions range.
Significant new contracts were won with major retailers and distribution companies.
The director specified foreign currency exchange as one of the principal risks affecting the business.
Operating throughout northern Europe, the company is exposed to currency fluctuations which it does not hedge. The strength of sterling against the euro makes British goods more expensive in Europe and more difficult to sell.
Other risks faced by Ingenico include product availability and prices, and competition.
Ingenico invested £250,000 in a new customisation centre at Dalgety Bay in 2013 to create facilities that are among the best in Europe.
The investment allowed Ingenico (UK) to double its customisation and hardware refurbishment capacity to 60,000 units per month.
The facility’s services also include software and payment security systems configuration; pick and pack services to meet individual customer requirements, and shipment of products and software throughout Europe.
The spending brought in more contracts in European markets. Ingenico also recruited another 21 repair technicians at Dalgety Bay to raise its workforce to more than 300 in the UK and Ireland.