7th Jun 2005 06:00
7th June 2005 Pursuit Dynamics plc ('Pursuit' or 'the Group') Interim results for the six months ended 31 March 2005 Pursuit Dynamics plc, the developer of the PDX‚® innovative fluid processingtechnology, today announces its interim results for the six months ended 31March 2005.Key Highlights: * Turnover of ‚£39,612 (‚£108,746 for the six months ended 31 March 2004) * Loss after tax of ‚£1,278,468 * Cash at 31 March 2005 of ‚£2,061,164 * Launch of the PDX Sonic 25 in January 2005, representing a significant milestone for the company * Licenses signed with Campbell Grocery Products Ltd. and Greene King Brewing Company Ltd. * Confirmation of technical and commercial advantages of PDX Firemist‚® technology in live fire trials Commenting on the results, John Heathcote, Chief Executive, said:"For some time we have been investing in a number of key areas including R&D,engineering and sales and marketing resource. This has opened up newopportunities for the company and we are already seeing an increase in thescale and breadth of the business. Following the recent launch of the PDX Sonic25 in January this year, we have had strong interest from a number of companiesdrawn from the food and drinks industries, reflecting a strong acceptance ofour technology."For additional information, please contact:Pursuit Dynamics plc +44 1763 250 592John Heathcote, Chief ExecutiveGary Pyle, CFOCapital MS&L +44 20 7307 5330Steffan Williams/ Paula CrymbleChairman's statementOn behalf of the Board I am pleased to present my first report as Chairman onthe interim results for Pursuit Dynamics plc (the "Group" or "Company") for thesix months ended 31 March 2005.Financial reviewDuring the period we recorded turnover of ‚£39,612 (‚£108,746 for the six monthsended 31 March 2004) as a result of the sale of a licence for a PDX‚® unit andevaluation trials in a number of different application areas. The Grouprecorded a loss after tax for the period of ‚£1,278,468 (‚£755,952 for the sixmonths ended 31 March 2004), after charging amortisation of ‚£278,528 (‚£278,530for the six months ended 31 March 2004), and including a research anddevelopment tax credit of ‚£54,000 (‚£62,000 for the six months ended 31 March2004). Cash at bank at 31 March 2005 was ‚£2,061,164 (‚£64,308 as at 31 March2004). Treasury deposits, which were previously carried in the balance sheet asShort Term Investments, have been transferred into interest-bearing currentaccounts.The scale and breadth of the business has increased significantly during theperiod. Your Company has invested substantially in its research anddevelopment, engineering and sales and marketing resource both in the UK andUnited States. Our turnover, whilst modest, is entirely in line with ourinternal forecasts.Operational reviewThe period since 30 September 2004 has seen the continued marketing of the PDXtechnology to the liquid prepared food market. An important milestone in yourCompany's development was the launch, in January 2005, of the PDX Sonic 25, anintegrated liquid prepared food processing system. This followed the signing ofour first distribution agreement and we have subsequently signed furtheragreements with distributors in the UK, France and Spain. This distributionnetwork, together with our sales and marketing team, is making a significantimpact, generating interest with both existing and potential customers.FoodSince the period under review, we announced the sale of a licence for a PDXSonic to Campbell Grocery Products Ltd, following a 3 month period ofevaluation. We are currently undertaking further pre-integration trials with anumber of major international food manufacturers. The formal launch of the PDXSonic 25 into the North American market is scheduled for the Worldwide FoodExhibition, Chicago, in October 2005, and a distribution network within theUnited States is scheduled to be in place by this time.BeveragesThe granting of a licence to supply a PDX solution to Coca-Cola Enterprises Ltdin November 2004 for use in the production of soft drinks has advanced theapplication of our technology within this industry, and we will continue towork with systems integrators and customers in developing products for thissegment of the beverage market.BrewingWe continue to evaluate the PDX technology within the brewing industry togetherwith a number of major global breweries and Brewing Research International.Following a successful evaluation of the Cleaning In Place ("CIP") abilities ofthe PDX system, we have recently supplied a system for this purpose to GreeneKing Brewing Co. Ltd. Evaluation of the PDX technology in the areas ofwort-boiling and mashing-in are underway, and we will pursue these commercialopportunities when complete.WatermistWe have recently confirmed the technical and commercial advantages of the PDXFiremist‚® system in live fire trials. The Firemist system successfullyextinguished fires in times considerably below those of conventional watermistsystems of similar flow rates. We have conclusively demonstrated the system'sability to generate a greater volume of smaller droplets, and to project themfurther, than any other system presently available in the market. We believethat the PDX Firemist system has the potential to be a world-beating solutionwithin the fire suppression field and progress also continues to be made in thecommercialisation of the system in the fields of decontamination anddisinfection.OilOur 80% owned joint venture, Pursuit Resources Ltd., is currently evaluatingthe application of the PDX technology in a number of areas in the oil industry,particularly in the field of tar sands and refining. We are encouraged by theearly results of our in-house evaluation trials and are discussing furthertrials with major industry participants.OutlookYour Company has invested heavily in R&D over the past few years and we are nowon the threshold of generating material revenues following the recent firstadoption of the PDX platform technology within the food, soft drink and brewingindustries. As part of our sales pipeline, we have a number of customers whoare either paying for the rental of PDX equipment or are funding newapplications. We will continue our high level of R&D spending as the potentialrewards offered by the application of our PDX technology in many other globalindustries continues to grow at an exciting rate. We look forward to reportingthese to you in the future.Andrew QuinnChairman7 June 2005Consolidated profit and loss accountfor the six months ended 31 March 2005 Note Six months Six months ended Year ended ended 31 March 30 September 31 March 2005 2004 2004 Unaudited Audited Unaudited ‚£ ‚£ ‚£ Turnover 39,612 150,012 108,746 Net operating expenses 4 (1,429,349) (2,263,050) (939,827) Operating loss (1,389,737) (2,113,038) (831,081) Interest receivable 57,269 83,227 13,221 Interest payable and similar charges - (93) (92) Loss on ordinary activities before (1,332,468) (2,029,904) (817,952)taxation Tax credit on loss on ordinary 54,000 136,493 62,000activities Loss on ordinary activities after (1,278,468) (1,893,411) (755,952)taxation (being the loss for the period) Loss per 1p share - Basic and fully diluted 2.82p 4.58p 1.84pThere 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 sheetas at 31 March 2005 30 31 March September 31 March 2005 2004 2004 Unaudited Audited Unaudited Note ‚£ ‚£ ‚£ Fixed assets Intangible fixed assets 3,268,912 3,547,440 3,825,971 Tangible fixed assets 176,414 182,141 145,771 3,445,326 3,729,581 3,971,742 Current assets Stocks 115,137 44,600 6,750 Debtors 5 386,360 382,062 1,029,757 Short term investments - 2,977,134 3,036,601 Cash at bank and in hand 2,061,164 186,190 64,308 2,562,661 3,589,986 4,137,416 Creditors: amounts falling due 6 (190,385) (305,602) (125,763)within one year Net current assets 2,372,276 3,284,384 4,011,653 Net assets 5,817,602 7,013,965 7,983,395 Capital and reserves Called up share capital 453,074 451,544 447,934 Share premium account 9,024,435 8,943,860 8,779,441 Merger reserve 4,061,185 4,061,185 4,061,185 Profit and loss account (7,721,092) (6,442,624) (5,305,165) Total equity shareholders' funds 5,817,602 7,013,965 7,983,395Approved by the Board of directors on 7 June 2005.Consolidated cash flow statementfor the six months ended 31 March 2005 Six months Year Six months ended ended ended 31 March 30 September 31 March 2005 2004 2004 Unaudited Audited Unaudited ‚£ ‚£ ‚£ Net cash outflow from operating (1,209,210) (1,525,084) (566,626)activities (see note 7) Returns on investment and servicing of finance Interest received 57,269 83,227 13,221 Interest paid - (93) (92) Net cash inflow from return on 57,269 83,134 13,129investment and servicing of finance Taxation United Kingdom corporation tax - - 113,352 -research and development tax credit received Net cash inflow from taxation - 113,352 - Capital expenditure and financial investment Payments to acquire tangible fixed (29,902) (122,406) (53,340)assets Receipts from sale of short term 24,712 27,643 23,990investments Net cash outflow from capital (5,190) (94,763) (29,350)expenditure and financial investment Net cash outflow before management of (1,157,131) (1,423,361) (582,847)liquid resources and financing Management of liquid resources Decrease /(increase) in short term 2,950,000 (1,948,805) (2,002,406)deposits with banks Net cash outflow / (inflow) from 2,950,000 (1,948,805) (2,002,406)management of liquid resources Financing Proceeds of ordinary share issue - 2,532,517 2,532,518 Issuance costs of shares - (213,244) (167,671) Proceeds of options exercised 82,105 1,178,524 224,155 Net cash inflow from financing 82,105 3,497,797 2,589,002 Increase in cash 1,874,974 125,631 3,749Notes to the interim financial statements1. Preparation of the interim financial statementsThe unaudited results for the six months ended 31 March 2005 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 2004.The financial information for the six months ended 31 March 2005 is unauditedand does not constitute statutory accounts within the meaning of the CompaniesAct 1985. The profit and loss account and cash flow statement for the yearended 30 September 2004, and the balance sheet at 30 September 2004 are anabridged statement of the full Group financial statements for that year whichhave been delivered to the Registrar of Companies. The report of the Auditorson the Group financial statements for the year ended 30 September 2004 wasunqualified and did not contain a statement under either section 237(2) orsection 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 ‚£1,278,468 (year ended 30 September 2004: ‚£1,893,411 and six months ended 31 March 2004: ‚£755,952) and a weighted averagenumber of shares of 45,256,925 (30 September 2004: 43,088,413 and 31 March2004: 41,127,802).3. DividendThe directors do not intend to recommend the payment of any dividends untilthey consider it prudent to do so, having regard to the need to retainsufficient funds to finance the development of the Group's activities.4. Net operating expenses Six months Six months ended Year ended ended 31 March 30 September 31 March 2005 2004 2004 Unaudited Audited Unaudited ‚£ ‚£ ‚£ Increase in stocks of finished goods (70,537) (44,600) (6,750)and work in progress Raw materials and consumables 178,318 182,068 81,178 Other external charges 9,849 18,570 0 Staff costs: Commercial and business development 338,103 569,665 151,429 Engineering, research and development 229,177 374,003 172,867 Depreciation of tangible fixed assets 35,629 60,119 27,423 Amortisation of intangible fixed assets 278,528 557,060 278,530 Other operating charges 407,282 483,889 214,150 Operating leases - land & buildings 20,000 38,176 18,000 Auditors' remuneration - audit fees - 22,000 - - non-audit services 3,000 2,100 3,000 1,429,349 2,263,050 939,8275. Debtors 30 31 March September 31 March 2005 2004 2004 Unaudited Audited Unaudited ‚£ ‚£ ‚£ Called up share capital not paid - - 740,766 Trade debtors 24,314 33,153 38,188 Corporation tax recoverable 188,449 134,449 173,308 Other debtors 31,044 38,415 19,895 Prepayments 142,553 176,045 57,600 386,360 382,062 1,029,7576. Creditors: amounts falling due within one year 30 31 March September 31 March 2005 2004 2004 Unaudited Audited Unaudited ‚£ ‚£ ‚£ Trade creditors 135,102 222,748 55,548 Other taxation and social security 33,703 45,218 44,607 Accruals 21,580 37,636 25,608 190,385 305,602 125,7637. Reconciliation of operating loss to net cash outflow from operatingactivities Six months Year ended Six months ended 30 ended 31 March September 31 March 2005 2004 2004 Unaudited Audited Unaudited ‚£ ‚£ ‚£ Operating loss (1,389,737) (2,113,038) (831,081) Amortisation 278,528 557,060 278,530 Depreciation 35,629 60,119 27,423 Loss on sale of investments 2,422 - 1,262 Increase / (decrease) in value of - 746 (2,730)marketable securities Increase in stocks (70,537) (44,600) (6,750) Decrease / (increase) in debtors 49,702 (179,658) (47,728) (Decrease) / increase creditors (115,217) 194,287 14,448 Net cash outflow from operating activities (1,209,210) (1,525,084) (566,626)8. Copies of reportCopies of the interim statement will be sent to shareholders. Further copieswill be available from the Company Secretary.ENDPURSUIT DYNAMICS PLCRelated Shares:
Gaming Realms