Bell & Webster closed down a number of operations during the period as demand dropped in the custodial, hotel and student accommodation markets.

Manufacturing could also be reduced further as the company keeps a close eye on costs despite recent signs of an upturn.

The company said: “In the past few weeks Bell & Webster has received an increasing number of project enquires, which may be an early indication of a potential upturn in demand for its products.

“That said, management are very conscious of the need to contain costs and in the absence of firm orders for its RoomSolutions products at acceptable margins, to have in place contingency plans to reduce still further its manufacturing capacity.”

Preliminary results for the 18 months to December 31 2011 show that 100 staff were made redundant during the period as the building systems division was restructured.

Group turnover was £56.8m while the company made a pre-tax loss of £930,000.

Executive chairman John Ketteley said: “Eleco has come through an extraordinarily difficult period this past eighteen months.

“However, I am  satisfied, that as a consequence of the judgements we made and the actions we took to tackle the problems we faced,  Eleco is now a much better balanced and financed Group.”