The group said commercialisation of its technology will take place in 2007/2008. It plans to continue building it customer base, protecting its technology by filing patents and securing additional funding to encourage growth.

"We intend to use these funds to complete our R&D programmes, transition from pilot scale to volume production capability, and continue to establish strong customer-supplier partnerships with the leading portable fuel cell system developers and component manufacturers," it added.

Turnover rose to $1m from $348,000 previously while loss from operations increased to $8.2m from $8.1m last year. Net losses narrowed to $7.9m from $8.9m in 2004.