An air filter manufacturer for the nuclear and defence industries took a hit to its balance sheet after issues with a contract.

MC Air Filtration, which has a 3,000sq m factory in Rainham, suffered losses of £193,000 last year after making a pre-tax profit of £120,000 in 2014.

The firm, founded in 1974, endured a 12% fall in turnover to £3.5 million, according to its latest accounts, filed at Companies House.

This came after its results were adversely affected by the cost of premises it took on for a contract, which were “underutilised due to further delays in the new orders anticipated for filtration equipment.”

It said arrangements had been made to reduce these costs, while its intake of orders improved towards the end of the year.

Directors said the company remained in a healthy state, with enough cash reserves to finance activities for at least another year.

In his report, company secretary Martin Long said: “As a result of significant cash balances held, combined with a strong order book, the directors believe the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.”