JOBS will be lost at anti-forgery specialist Applied Optical Technologies (AOT) after the company confirmed part of the operation at its North-East headquarters will close.

The company, based in Washington, Wearside, said increased losses of £1.7m meant there would be reductions to its 140-strong workforce.

Problems at the company's European operation, which makes holographic security devices, forced it further into the red.

Pre-tax losses of £1.7m announced earlier this week compared with a £700,000 loss during the same period last year.

Despite a successful performance from AOT's US operations, turnover fell from £12.7m to £12.2m.

The company, which has business interests throughout the world, safeguards trademarks for US sporting leagues, including for basketball, American football and hockey.

Its brand protection business in the US saw turnover rise by one per cent, although operating profits were down five per cent.