Revenues for the year to the end of December fell to £5.79m - down from £6.47m - but gross profit margins improved to 51% from 46%.

The firm had £2.94m in cash at the end of the year compared with £1.63m at the end of 2008.

Chief executive John Pettitt said the firm had signed a letter of intent with Volvo and a development agreement with Navistar which represented significant milestones for the company.

He added: "These commitments validate our strategy to target OEMs and help create a solid platform for potential growth in 2010 and beyond.

"The main objective now is to turn these opportunities into contracts and to capitalise on the increased levels of interest in our technology from significant organisations."

Story provided by Business Financial Newswire