NXT, the technology group which makes flat-panel loudspeakers, has said a �1.5m government research and development tax credit helped it narrow losses last year.

But the group said economic uncertainty had caused delays in bringing new products to market.

NXT's ambition is to totally change the way people appreciate sound

NXT

The company is still pushing ahead with ideas such as the world's first commercial display screen which acts as a loudspeaker, which it will help launch this autumn.

NXT is also working on plans to introduce its text-to-speech software into cars, and has extended a project with Jaguar motors.

Re-invention

NXT transformed itself from a hi-fi manufacturer to a technology group two years ago, and says its aim is "to totally change the way people appreciate sound".

The group is developing speakers built from flat or curved panels, which it says will offer better sound quality as well as cost savings for companies.

In the year to 30 June, NXT reduced its pre-tax loss from by �3m to �10.8m.

The company said growth from its flat panel loudspeaker business had been slower than hoped, but that over one million loudspeakers bearing the NXT trademark had been sold in the last year.

Upping the pace

NXT added that its automotive decision was advancing, with plans to fit its panel speakers in car dashboards and in the pillars separating windows.

"We are confident that a vehicle using NXT technology will be commercially available by the end of 2004," it said.

Chairman Gordon Owen said all parts of the company had made "good progress" in the last year, but added "we now need to increase the rate of that progress".

NXT said the last year had seen significant developments in its supply chain, which it described as "a critical precursor to the commercialisation of our technology".

Shares in the group jumped 14% or 5p to 40p on the update.