7th Feb 2005 07:00
7 February 2005 Pursuit Dynamics plc ('Pursuit' or 'the Group') Preliminary Results for the year ended 30 September 2004 Pursuit Dynamics plc, the developer of the PDX‚® innovative fluid processingtechnology, today announces its preliminary results for the year ended 30September 2004.Financial Highlights: * Turnover ‚£150,012 (2003: nil) following evaluation trials and licence sales * Recorded a loss after tax of ‚£1,893,411 (2003: ‚£1,512,628), after amortisation of Intellectual Property * Cash and short term deposits at 30 September 2004 ‚£3,163,324 (2003: ‚£ 1,117,277) * First adoption of PDX technology by Welcome Food Ingredients in March 2004 * Adoption of first production PDX unit by Coca-Cola Enterprises Ltd in November 2004 Business highlights: * Development of PDX Sonic 25 completed with product launched on schedule in January 2005 * D.C. Norris and BPT Skerman signed as first steps in creation of international distribution network * Twelve month development programme of FireMist‚® completed, culminating in successful live fire trials in Sweden during November/December 2004 * Development programmes in the brewing and paper industries commenced in 2004, and are ongoing Commenting on the results, John Heathcote, Chief Executive, said:"In 2004 Pursuit Dynamics has advanced successfully the PDX technology throughthe product development stage to the commencement of commercialisation.In addition, with the very recent launch of the PDX Sonic 25 in January 2005and the signing of international distribution agreements, for the first time wenow have an integrated product and a distribution network to sell it. Theresponse from the food and drink industries has been immediate, with stronginterest from both distributors and end users. We expect to announce furthersales to the food manufacturing industry and further developments and productlaunches in other industries in due course."For additional information, please contact:Pursuit Dynamics plc +44 1763 250 592John Heathcote, Chief ExecutiveGary Pyle, CFOCapital MS&L +44 20 7878 3181Nick Lockwood/Steffan WilliamsChairman's statementI am pleased to report the results of Pursuit Dynamics plc for the year ended30 September 2004 representing our fourth year of continuing development.During the year ended 30 September 2004 we recorded income of ‚£150,012 (2003:nil) as a result of the development trials with a global confectionery company,sale of a licence for a PDX unit and various evaluation trials in a number ofdifferent application areas. The Group recorded a loss for the year after taxof ‚£1,893,411 (2003: ‚£1,512,628), after charging amortisation of theIntellectual Property of ‚£557,060 (2003: ‚£557,060). The increased loss for theyear reflects the increased investment in the sales and business developmentresource.The balance sheet was significantly strengthened during the year by the issueof 2,042,353 ordinary shares of 1p each at a price of ‚£1.24 in March 2004.Furthermore, options over 2,515,031 shares were exercised during the year. Allpermanent staff benefit from share options, and the proceeds from thoseexercised during the year have helped increase the Group's net assets in spiteof the increased cost base.Since the first adoption of the PDX‚® technology by Welcome Food Ingredients Ltdin March 2004, the year has seen the systematic increase in the focusedmarketing of the PDX technology to the liquid prepared food market, culminatingin the launch of the PDX‚® Sonic 25, an integrated liquid prepared foodprocessing product, in January 2005. The system is demonstrating significantlyfaster and cheaper processing capabilities than traditional alternatives and isgenerating significant interest throughout the liquid prepared food sector. Theapplication of the technology within the soft drinks industry has now advanced,with the adoption of the first PDX unit by Coca-Cola Enterprises Limited. Wewill continue to work with systems integrators in developing products for thisindustry.Progress continues to be made in our evaluation of the technology within thebrewing, paper, fire suppression and decontamination applications. By workingclosely with leading companies and technical authorities within theseindustries we are able to establish both new applications and the data requiredto establish these as products in due course.There are many other applications where our platform technology will make asignificant impact. Pharmaceutical, dairy, oil and waste water are potentialareas where the technological and commercial advancements made to date willhave a positive effect on the establishment of these new markets for PDXtechnology.The Group has taken the step of strengthening the Board with the appointment ofKester Scrope as Commercial director, Brian Sweeney and Rooney Anand asnon-executives directors. The new directors bring with them considerablecommercial acumen at this exciting stage of our development. The Board wouldlike to thank the retired non-executives, Henry Clarke and Peter Taylor, fortheir past efforts and achievements for the Group.The Board has recently appointed Investec as nominated advisor and broker andlooks forward to working with its new advisors.The past year has been one of both dramatic progression of the marketing effortinto the food industry, and of significant further advancement of thetechnology's application in our other current principle industry areas. Thisperiod has been extremely busy for all concerned with the Group, and for that Iexpress my gratitude to employees, directors and shareholders for theircontinued support. We now look forward to the forthcoming period where we areconfident of realising the benefits of our efforts.Ronald TrenterChairmanReview of operationsThis year has seen Pursuit Dynamics continuing transition from a research ledcompany to a commercially driven business. The PDX‚® technology is a trueplatform technology with applications across a number of global industries. Thechallenge for our management team has been to take this revolutionary newtechnology and to create a structure that will turn the many advantages of PDXinto earnings in the coming years. To achieve this structure, the primarymanagement objective has been the product development programmes surroundingour selected target market areas: the food and drink manufacturing applicationsof the PDX technology. These programmes have been completed on time and withinbudget and the first production PDX‚® Sonic 25, a fully integrated,electronically controlled system, was unveiled in London on 12 January 2005.DevelopmentsMajor progress has been made in a number of other industry areas. With the helpof potential customers, we are currently supporting pre-production trials ofthe PDX system in both the paper and brewing industries. These trials willconclude in 2005 and, if successful, will result in the rollout of new productslater in the year. We successfully completed a one-year development programmeof our FireMist‚® system, a fire suppression and decontamination system based onthe PDX technology, and our confidence in the system, and our engineeringabilities, has been rewarded: FireMist produces smaller water droplets, in agreater volume, than any other system available today. The fire suppressionimplications of this are exciting and FireMist is drawing attention from majororiginal equipment manufacturers and government agencies around the world. Anumber of trials have already been completed and others are scheduled over thenext several months. Throughout the year we have continued our research anddevelopment program, resulting in an increasing number of patents granted andpending. We have also increased the cover under our intellectual propertyinsurance policy to ensure adequate protection of our IP suite.PeopleOur management and engineering teams have done a great job in rising to thechallenges of transition from research and development to commercialisation.The number of people we employ has inevitably grown over the past year and theadditions to the team have been integrated extremely well. We employ engineerswho are proven leaders in their chosen fields, as well as a management teamthat can cope with a rapidly evolving business such as ours. Our businesssuccess will be based on our people, and we have terrific people.StrategyOur strategy remains simple: to leverage our intellectual property suite bydeveloping commercial applications for the PDX technology across a wide rangeof industries. Our limited personnel and financial resources necessitate thatwe are very focused both in the number, and speed with which, we can roll outand market new products. Our business model is to licence or sell applicationareas of PDX when we have created sufficient value to make this attractive. Therecent signing of agreements with distributors DC Norris & Co (Eng.) Ltd andBrooklands Process Technology (Skerman) Ltd is the first stage of a plannedinternational distribution network, which is scheduled to be in place during2005.ProspectsThe forthcoming year will be a busy and exciting time for us. We have for thefirst time an integrated product to sell, the PDX Sonic 25. Moreover, it is aproduct that demonstrates such compelling advantages over its competition thatwe believe it will revolutionise the manufacture of food and drinks. TheFireMist, brewing and paper programmes will all be completed by the end of2005, by which time we expect to have further products to launch. Beyond theseprogrammes and launches, we are currently developing further applications ofthis unique system.John HeathcoteChief Executive OfficerConsolidated profit and loss accountfor the year ended 30 September 2004 Unaudited Audited Year ended Year ended 30 September 30 September 2004 2003 ‚£ ‚£ Turnover 150,012 - Net operating expenses (2,263,050) (1,647,582) Operating loss (2,113,038) (1,647,582) Interest receivable 83,227 23,774 Interest payable and similar charges (93) (128) Loss on ordinary activities before (2,029,904) (1,623,936)taxation Tax credit on loss on ordinary activities 136,493 111,308 Loss on ordinary activities after (1,893,411) (1,512,628)taxation (being the loss for the year) Loss per 1p share - Basic and fully diluted 4.39p 3.90pThere are no recognised gains and losses other than those reported above. Noseparate statement of total recognised gains and losses has therefore beenpresented.All activity related to continuing operations.Consolidated balance sheetat 30 September 2004 Unaudited Audited Group Group 2004 2003 ‚£ ‚£ Fixed assets Intangible fixed assets 3,547,440 4,104,500 Tangible fixed assets 182,141 119,854 Investments - - 3,729,581 4,224,354 Current assets Stocks 44,600 - Debtors: amounts falling due within one year 382,062 179,263 Short term investments 2,977,134 1,056,718 Cash at bank and in hand 186,190 60,559 3,589,986 1,296,540 Creditors: amounts falling due within one year (305,602) (111,315) Net current assets 3,284,384 1,185,225 Net assets 7,013,965 5,409,579 Capital and reserves Called up share capital 451,544 405,971 Share premium account 8,943,860 5,491,636 Merger reserve 4,061,185 4,061,185 Profit and loss account (6,442,624) (4,549,213) Equity shareholders' funds 7,013,965 5,409,579Consolidated cash flow statementfor the year ended 30 September 2004 Unaudited Audited Year ended Year ended 30 September 30 September 2004 2003 Note ‚£ ‚£ Net cash outflow from operating activities 3 (1,525,084) (1,049,494) Returns on investment and servicing of finance Interest received 83,227 23,774 Interest paid (93) (128) Net cash inflow from returns on investment and 83,134 23,646servicing of finance Taxation United Kingdom Corporation tax - research and 113,352 112,366development tax credit received Net cash inflow from taxation 113,352 112,366 Capital expenditure and financial investment Payments to acquire tangible fixed assets (122,406) (29,459) Receipts from sale of tangible fixed assets - 14,337 Receipts from sale of short term investments 27,643 - Net cash outflow for capital expenditure and (94,763) (15,122)financial investment Net cash outflow before management of liquid (1,423,361) (928,604)resources and financing Management of liquid resources (Increase)/ decrease in short term deposits with 5 (1,948,805) 154,769banks Net cash (outflow)/ inflow from management of (1,948,805) 154,769liquid resources Financing Proceeds of Ordinary share issue 2,532,517 553,293 Issuance costs of shares (213,244) (38,841) Proceeds of Options exercised 1,178,524 265,530 Net cash inflow from financing 3,497,797 779,982 Increase in cash in the year 4 125,631 6,147Notes to the financial statements1. Preparation of the financial statementsThe unaudited results for the year ended 30 September 2004 have been preparedin accordance with UK generally accepted accounting principles.The accounting policies applied are those set out in the Group's Annual Reportand Accounts for the year ended 30 September 2003.The financial information for the year ended 30 September 2004 is unaudited anddoes not constitute statutory accounts within the meaning of the Companies Act1985. The profit and loss account and cash flow statement for the year ended 30September 2003, and the balance sheet at 30 September 2003 are an abridgedstatement of the full Group financial statements for that year which have beendelivered to the Registrar of Companies. The report of the Auditors on theGroup financial statements for the year ended 30 September 2003 was unqualifiedand did not contain a statement under either section 237(2) or section 237(3)of the Companies Act 1985.2. Loss per shareThe calculation of basic and diluted loss per share is based on a loss onordinary activities after tax of ‚£1,893,411 (year ended 30 September 2003: ‚£1,512,628) and a weighted average number of shares of 43,088,413 (30 September2003: 38,777,596).3. Reconciliation of operating loss to net cash outflow from operatingactivities Unaudited Audited 2004 2003 ‚£ ‚£ Operating loss (2,113,038) (1,647,582) Amortisation of intangible fixed assets 557,060 557,060 Depreciation of tangible fixed assets 60,119 46,353 Decrease/ (increase) in value of marketable 746 (30,875)securities Increase in stocks (44,600) - (Increase)/ decrease in debtors (179,658) 39,237 Increase/(decrease) in creditors 194,287 (13,687) Net cash outflow from operating activities (1,525,084) (1,049,494)4. Reconciliation of net cash flow to movement on net funds Unaudited Audited 2004 2003 ‚£ ‚£ Increase in cash in year 125,631 6,147 Cash outflow/(inflow) from short term deposits 1,948,805 (154,769) Cash inflow from sale of marketable securities (27,643) - Change in net funds from cash flows 2,046,793 (148,622) Change in market value (746) 30,875 Net funds at start of year 1,117,277 1,235,024 Net funds at end of year (see note 5) 3,163,324 1,117,2775. Analysis of movements in net funds Audited Unaudited At Change in At 1 October market Cash 30 September 2003 value flows 2004 ‚£ ‚£ ‚£ ‚£ Cash at bank and in hand 60,559 - 125,631 186,190 Short term deposits 1,001,195 - 1,948,805 2,950,000 Marketable securities 55,523 (746) (27,643) 27,134 Net funds 1,117,277 (746) 2,046,793 3,163,3246. Copies of reportCopies of the financial statement will be sent to shareholders. Further copieswill be available from the Company SecretaryENDRelated Shares:
Gaming Realms