BMR has incurred heavy losses and is still servicing debts of 11.5m following a legal battle in the US in 2002 to prevent other manufacturers selling copycat products copying its Slendertone Belts.

The company had a pretax loss of .5.4m on sales of 29m in 2004, according to accounts just filed with the Companies' Office. The company's main shareholder ICC Venture Capital, a subsidiary of Bank Of Scotland Ireland, advanced the 3.5m in loans during the period, according to the accounts. The company borrowed a further 1m at the beginning of 2005.

Smith said a programme of restructuring, which led to the closure of a manufacturing plant in Bunbeg, Co.

Donegal two years ago, has helped revive the company's fortunes. BMR grew its revenue to 42m and was profitable on an operating basis in 2005, she said. "We traded ahead of our budget all the way through 2005, " she said.