AN OXFORD high-tech company says it is in better shape than ever, despite increasing its annual loss from £972,000 to £1.7m.

Oxford Catalysts is spending £1.3m doubling the size of its laboratory at Milton Park, near Abingdon, and says its £15.6m cash pile, raised from the stockmarket, will last until it is profit-making.

It is also taking on six more staff, having already expanded from nine last year to 24 now.

It hopes to revolutionise the process of turning gas or coal into liquid fuel, as well as developing greener biofuels. Another of its catalysts is used in a prototype cleaner, Proventec, which creates superheated steam instantly, starting from room temperature.

Chairman Dr Pierre Jungels said: "Oxford Catalysts is in better shape than ever.

"We've assembled a world-class team and have made huge strides in commercialising our technology.

He added: "We are where we hoped we would be at this stage of our development, yet with a stronger balance sheet, which is proving to be a particularly valuable asset in the current market environment."

Last year's revenues totalled £163,000, and the company signed a licence deal with US company Novus Energy, which will set up pilot plants to test the Oxford company's technology for turning waste into fuel.

Novus Energy plans to roll out dozens of full-scale facilities over five years, giving Oxford Catalysts a potential royalty income of £375,000 a year for each plant.

The Oxford company is also hoping to commercialise its instant steam technology.

The company was founded by Prof Malcolm Green and Dr Tiancan Xiao, of Oxford University's Wolfson Catalysis Centre, in October 2004.

Chief executive Roy Lipski said: "We are now looking less and less like a university start-up and more and more like an established commercial organisation."

Following a £4m stockmarket fundraising last summer, it has spent £592,000 on new equipment.