Speirs Group said its first-half net loss worsened to $1.2 million as the company sought to improve its position within the fresh and functional foods industries.

Speirs, which raised more than $5.9 million in equity and medium term debt during the period, said revenue fell nearly 70% to $6.5 million.

The company holds a 59.6% partnership interest in Speirs Nutritionals, which has proprietary technology that masks the smell and taste of omega-3 fish oil, and stabilises the oil.

The process allows large doses of the oils, in the form of an emulsion, to be incorporated into a range of food products.

The company has restructured since selling its finance business in late 2008, and expected further costs in the second half of the year as it continued to establish the business and develop its products.