Semefab, the Glenrothes semi-conductor manufacturer, made a pre-tax loss of more than half a million pounds last year but predicted it would recover.
The sensor-producing company at the forefront of the UK’s micro and nano technology (MNT) network, plunged from being £127,065 in the black in 2013 to £582,930 in the red in 2014.
The loss was suffered despite turnover rising by almost 15% to £9.056 million.
Semefab director Allan James said 2014 saw continued growth in orders with confidence returning to the markets in the UK, Europe and China.
Although revenue increased once again, gross margins at the Eastfield Industrial Estate workplace where 100 staff are employed were adversely impacted for four reasons:
Additional staff hired in response to the improving market required training and were not fully productive during the year;
Suppliers unexpectedly increased prices, particularly in energy costs;
Additional investment into work in progress had been expected to convert to revenue but, due to unforeseen events beyond the control of the company, had to be postponed;
A two-week enforced shutdown and recovery of all electrical plant and equipment occasioned by the three yearly mandatory Fixed Wiring and Electrical Inspection interrupted production.
Mr James said: “During 2015 we expect gross margins to recover due to the non-recurring nature of the one-off anomalous events in 2014.
“The board continue to believe the financial position of the company to be strong, particularly with net current assets and shareholders’ funds of £1,189,619 and £4,051,401 respectively at the year end.
Semefab makes CMOS (complementary metal oxide semiconductor) sensors for converting images to digital signals in small, high-definition camcorders.
Mr James said the CMOS business in China continues to be strong, and the CCTV camera market where Semefab’s sensors are employed is significantly outperforming the China economy generally.
He anticipated further advances in technology would result in cost savings in electricity and consumables, and said Semefab continues to be involved in developments in the bio/medical sensor fields.
The company was collaborating with Swansea University and a commercial partner to develop a generic platform point of care diagnostic sensor.