Holders Technology has confirmed that trading for the first period of 2017 had been broadly in line with the board's expectations.
A trading update ahead of today's annual general meeting said revenues and margins in the printed circuit board divisions - which contributed around 80% of the group's revenues - had improved since being restructured during 2016.
The group said it continued to invest in machinery and IT systems to improve efficiency, and new PCB products had been added to the product portfolio.
Holders Technology's revenues fell to GBP11.2m in the year ended 30 November - down from GBP13.5m in 2014.
But operating losses narrowed to GBP151,000 from GBP357,000 and pre-tax losses fell to GBP166,000 from GBP362,000.
LED results showed good improvement during 2015 and this, despite disappointing PCB results, led to material improvement in the group operating result. Group revenue was reduced compared to 2014 due principally to sterling strengthening and the loss of a large PCB distributorship at the end of 2014. Gross margins improved and cash balances remained satisfactory.
Holders Technology posts an operating loss of £95,000 for the six months to the end of May - down from £170,000 a year ago - despite revenues falling to £5.5m from £6.9m.
The group - which supplies speciality laminates and materials for printed circuit board manufacturers, and operates as an LED solutions provider to the lighting and industrial markets - reports a loss of £81,000 for the period compared with £146,000 a year ago.
Executive chairman Rudolf W. Weinreich said: "The first half of the year saw a strengthening of sterling against the euro.