Dundee company Stoneridge Electronics stayed in the red last year due to foreign exchange rates negatively impacting on performance.
The 2014 loss was lower than the previous year for the tachograph firm which conducts a large amount of its business on the continent and trades in the euro.
The Claverhouse company’s turnover was down 14% at £15.5 million but operating profit remained stable at £62,000 due to lower expenses.
The pre-tax loss was down 36.5% at £33,000, the results being impacted by the effect of foreign exchange on gross margins.
The loss after tax of £223,000 was less than half the previous year’s sum.
Vice-president Amanda Robertson said that as well as manufacturing and distributing vehicle journey recording equipment, Stoneridge invested in research and development.
New products were being developed and engineering maintenance support was provided to existing business along with cost reduction projects.
With the acquisition of the tachograph segment of an importer in Germany, Stoneridge was planning to increase its share of a key EU market.
The company was also well placed to take advantage of tachograph legislation in Turkey, which was adopting the EU digital tachograph with a retrofit programme for existing vehicles.
The vice-president said the company was exposed to risks over the interest rate, credit, liquidity and foreign currency but had policies to manage these issues.
She added: “The company makes sales and purchases in foreign currencies of which the majority of transactions are conducted in euros.
“As a result cash flows can be affected by movements in the euro exchange rate.”
Sales forecasts for 2015 and 2016 showed an increase in revenue, and Stoneridge expected to continue to generate positive cash flows and net income for the foreseeable future.
In September Stoneridge announced it was cutting around 10% of its 100-strong Dundee workforce to help its financial performance.
The Dundee redundancy situation was part of a wider strategy designed to ensure the base remained earnings enhancing for the group long-term.
The vice-president previously said the UK remaining in the European Union a referendum is promised by 2017 was of vital importance to Stoneridge in Dundee as its wide range of products and services were geared to EU legislation.