27th Nov 2007 07:01
Pursuit Dynamics PLC27 November 2007 27 November 2007 Pursuit Dynamics plc ("Pursuit Dynamics" or "the Company") Preliminary Results for the Year to 30 September 2007 Pursuit Dynamics plc (AIM: PDX), the developer and exploiter of the PDX platformtechnology, is pleased to announce that it has continued to make good progressin the commercialisation of its wholly owned PDX(R) technology during the yearended 30 September 2007. Commercial Highlights • Fire: Factory Mutual ("FM") approval awarded November 2007 • Ethanol: Significant advances in biofuels programme • Decontamination: technical and commercial advancement • Food and Brewing: Major contract wins Financial Highlights • Turnover 2007 £3.1 million (2006: £1.5 million) • Operating loss 2007 £7.0 million (2006 £4.3 million) • Net Funds 2007 £7.4 million (2006: £4.9 million) Commenting on the results, Andrew Quinn, Chairman of Pursuit Dynamics Plc said:"During this period we have made some remarkable breakthroughs in the field ofbiofuels, we have moved closer to the roll-out of commercial fire suppressionproducts and we are in the process of negotiating a key decontaminationcontract. We have identified numerous other prospective commercial applicationsfor the PDX technology during the course of the year and enter the 2008financial year with tremendous optimism." He added: "We have achieved a great deal in a very short space of time sincelaunching our first commercial product in 2005 and while progress to deliverreturns has at times been frustratingly slow, especially in Food and Brewing, weremain extremely confident of our future success." For Further Information, please contact: Pursuit DynamicsJohn Heathcote, Chief Executive Tel: +44 (0)1480 422050 Redleaf CommunicationsEmma Kane / Paul Dulieu / Richard Girling Tel: +44 (0) 20 7822 0200 Cenkos Securities plcIan Soanes Tel: +44 (0)20 7397 8924 Notes to Editors - Pursuit Dynamics PLC (AIM: PDX) owns and commercialises the PDX fluidprocessing reactor whose benefits include significant reductions in energyusage, process acceleration and result enhancement for industries such as Food &Drink, Brewing, Fire Suppression, Decontamination and bio ethanol production. - Pursuit Dynamics is headquartered in Huntingdon, UK and has an office inNorwalk, Connecticut, USA. Pursuit Processing Equipment Limited, the processingequipment division of Pursuit Dynamics, operates from its own facility inBrooklands, Surrey, UK. - Further information is available at the Company's website:www.pursuitdynamics.com - Publication quality photographs are available from Redleaf Communications. Statement by the Chairman, Andrew Quinn I am very pleased to be able to report to shareholders upon an exciting year ofprogress for your company. During this period we have made some remarkablebreakthroughs in the field of biofuels, we have moved closer to the roll-out ofcommercial fire suppression products and we are in the process of negotiating akey decontamination contract. We have identified numerous other prospectivecommercial applications for the PDX technology during the course of the year andenter the 2008 financial year with tremendous optimism. We have achieved a greatdeal in a very short space of time since launching our first commercial productin 2005 and while progress to deliver returns has at times been frustratinglyslow, especially in Food and Brewing, we remain extremely confident of ourfuture success. Results Turnover for the year to 30 September 2007 doubled to £3.1 million (2006: £1.5million). In both years substantially all the turnover arose from sales ofprocess equipment into the food and brewing industries. A significantly largerproportion (35%, 2006: 21%) of the turnover came from equipment utilizing thePDX technology in 2007. During the year we continued to invest heavily in both research and development,and sales and marketing. The major part of our expenditure in research anddevelopment has been in our work on bioethanol. The majority of the growth inour sales and marketing expenditure has been in establishing our distributioncapabilities for food processing equipment. We have also implemented FRS 20 "Share-Based Payment" which has resulted in an expense of £0.5 million, theresult for 2006 has been restated to include an expense of £0.3 million. Losses attributable to ordinary shareholders increased to £6.5 million (2006:£4.0 million) with the loss per share of 11.80p (2006: loss of 7.93p). The Boardis not recommending a dividend at this stage in the Company's development. At 30 September 2007 net funds (cash and short term investments net of financeleases and loans) stood at £7.4 million (2006: £4.9 million). During the yearnet cash outflow before management of liquid resources and financing increasedto £5.4 million (2006: £3.5 million). We raised £7.6 million net of expenses in February 2007 following the issue of6,955,000 new ordinary shares at 115p. This fundraising has enabled us toaccelerate our bioethanol development work. As a result of this fundraising weare in a good financial position to deliver our current business plan. Shareholders' funds at the year end which reflect the fundraising, offset by theincreased loss for the year, were £10.2 million (2006: £8.3 million). Board and Management We have had a number of changes to the membership of the Board of Directorsduring the year. In March Rooney Anand resigned from the Board and in May 2007Ian Smith joined us as Chief Financial Officer and Company Secretary, takingover from Gary Pyle, who had resigned as an executive but agreed to continue onthe board as a non-executive director. Following his resignation as ChiefFinancial Officer Gary served as the Chairman of the Audit Committee untilOctober 2007. In October, we were very pleased to announce that Stuart Evans had joined theBoard as a non-executive director and had accepted the Chairmanship of the AuditCommittee. Stuart brings a wealth of relevant experience from his background ingrowing technologically innovative businesses from start-up, both in the UnitedKingdom and the US, and from his track record in consulting, sales and executivemanagement. In addition, I am delighted to announce the appointment today of Michael D. Ryanto the Board as a non-executive director. Mike is Executive Vice President,Government Relations, for Rolls-Royce North America Inc., based in Washington,where he has responsibility for providing customer executive services for allRolls-Royce military and civil programs in North America. Immediately prior tojoining Rolls-Royce in 1998, Mike had served as a career officer in the USMarine Corps, his final appointment being that of Major General commanding the2nd Marine Aircraft Wing. Mike's experience and contacts on Capitol Hill andthroughout many relevant industries will be an invaluable resource to theCompany as it develops in the US. Strategy Our strategic approach can be summed up in four words; Identify, Prove, Develop,Commercialise. With the PDX technology proving to be a genuine platform technology, withapplications across a wide range of industries and a number of differing duties,it is important that we avoid the temptation to try and prosecute everypotential application. Instead we focus on those where the time to revenue, theultimate market size and the cost to our Company are optimised in order toachieve commercialisation. We must also remain mindful of the defensibility ofour IP, the speed of development of the competing technologies, our eventualroute to market and whether we should license an application of the PDX or selldirectly to the end user. Our skills in prioritising and prosecuting these applications is, and willcontinue to be, the key to our future success. Until last year we had beenfocused on four major application areas: food, brewing, fire and decontaminationand rigorously sticking to these areas has allowed us to identify numerousfurther applications without over extending ourselves. In short, we seek to get the PDX into service in as short a time as possible,into as large a market as possible, where we will have a clear commercial andtechnical advantage and where we will not have to compromise our IP in order toachieve success. Understanding and managing these risks and opportunities, andprioritizing our resources, is every bit as important to our success asdeveloping the technical aspects of the PDX. Outlook Much has been written about the global push for the development of productivecapacity in biofuels, particularly in the US, driven as much by a desire fordomestic energy independence as for their green or carbon-neutral credentials.The US Government's stance, which it supports through subsidies, has had theeffect of a large number of plants being built, with many more in constructionor in planning. The resulting surge in demand for cereals has dramaticallyreduced grain stocks and pushed prices sharply higher. We believe that our bioethanol reactor system represents a huge technicaladvance for the bioethanol industry. We expect that our reactor system will becapable of improving the overall recovery efficiency of the process, improvingethanol yields dramatically by up to 17%. For an industry that is planning toexpand production in the US alone to 15 billion gallons per annum by 2011, froma planned 9.3 billion gallons in 2008, our PDX technology could theoreticallyprovide an increase in production of upwards of 2.5 billion gallons ofbioethanol or, alternatively, a commensurate reduction in the industry's grainrequirements. Either way, the financial implications/benefits for the industrywill be material. If confirmed, this will represent a step-change in the economics of the ethanolproduction process. However, we have gone further than this and are now lookingat our technology's impact on the challenge of cellulosic ethanol production,regarded as the biofuel industry's "holy grail". We believe that we are well onour way to successfully achieving a low cost, continuous ligno-cellulosicethanol process which could pave the way to the production of low-cost liquidfuel from waste plant matter. I have spent some time here describing our progress in this area not justbecause I believe that we are on the threshold of a remarkable breakthrough,which we expect will prove extremely profitable for your company for many yearsto come, but also to illustrate the successful outcome of a process that happenscontinuously in Pursuit. The way in which new applications for our coretechnologies surface demonstrates both the inherent strength of the PDXtechnology and our innovative capabilities. As an example, our bioethanolprogramme started as a direct result of our work in the food and brewingindustries. Pursuit Processing Equipment has played an important role inproviding the Company with the knowledge and integration skills that have beenessential in helping us progress the commercialisation and roll-out of ourtechnology applications. As I have described above, we are very encouraged by our progress in bioethanoland believe that, if we maintain our current rate of progress, we will see thebeginnings of a significant revenue stream in the 2008 financial year. In fire suppression, our global licensee Tyco Fire and Building Products ("Tyco") continues to make good progress towards releasing a fire suppression systemincluding our FireMist(R) technology and we anticipate the start of a royaltystream in the 2008 financial year. Our decontamination business is still at an early stage and we would expect amodest revenue stream combined with continued validation of our Basilisktechnology during financial year 2008. We expect to see our food and brewing business continue to grow its revenues in2008 although the rate of growth may be slower than previously anticipated inthe market. It is in the nature of a company developing innovative technologies thatdifferent applications mature at different speeds. The speed of thesedevelopments is very much dependent upon a number of factors including the easewith which technical obstacles can be overcome, the regulatory environment,market fragmentation and also wider macro economic issues. It has been anexciting year for the Company and we believe, as we continue to identify, prove,develop and commercialise applications for the PDX technology the Company is ata truly exciting point in its life. Andrew Quinn, Chairman 27 November 2007 Review of Operations by the Chief Executive, John Heathcote During 2007 Pursuit Dynamics made a number of important advances, bothtechnically and commercially. Our licensee Tyco has made good progress in thecommercialization of our fire suppression technology and we have made greatstrides in the development of our biofuel and decontamination applications.However, we suffered a disappointing period with Pursuit Processing Equipment,our systems integrator and sales arm for food and brewing applications. Fire Suppression The development of FireMist, our patented fire suppression technology, by ourglobal licensee, Tyco Fire and Building Products ("Tyco"), continued apace. Therecent award of Factory Mutual ("FM") approval for the first commercial systemincorporating our FireMist technology, marks a major milestone in ourdevelopment and the successful culmination of a great deal of effort by bothTyco and ourselves. We are delighted with the progress that Tyco has made in the development ofcommercial systems based on FireMist. Tyco has moved it from an advancedtechnology to a groundbreaking product in just under two years, gaining thenecessary third party approvals required for sales to commence. This has been anextraordinarily intense programme and we would like to thank the Tyco technicalteam for their dedication to this project. We do not believe that any otherpotential licensee could have achieved the advancement of FireMist in thetime-frame demonstrated by Tyco. FireMist is a highly effective suppression technology that has proved itself inseveral hundred individual fire trials on the way to achieving FM approval.FireMist represents a revolution in system performance in the suppression andextinguishment of fires whilst using much less water than conventionaltechnologies, thus dramatically reducing the water damage that is an inevitableresult of the operation of a conventional protection system. We are extremelyproud that we have been instrumental in developing the technology at the heartof this system. The commercialization programme for FireMist is now well underway and Tyco isexpected to market FireMist globally under its own brands. We also expect Tycoto continue its development efforts to expand the initial system configurationto include additional applications. As a result, we expect to see revenuescommencing during 2008 and increasing revenues starting to be demonstrated in2009. Biofuels We have made dramatic progress in our biofuels programme during the past year. The basis of conventional ethanol production requires the activation ofnaturally occurring starches. Through our work in the food industry we foundthat the PDX reactor is a uniquely efficient starch activation mechanism,capable of a performance well in excess of any known technology. In May 2006 webegan research into the possibility of enhancing biofuel yields through use ofthe PDX reactor and commenced an intensive program of physical testing andanalysis in December 2006. Since then, our work, supported by external analysisby various food science groups, has confirmed that the PDX reactor systeminstantly activates more starch material at lower temperatures, than anyexisting technology. We have continued to develop the starch activationcapabilities of the PDX reactor and, during the year, have achieved what webelieve to be the optimum inputs into the system in relation to this process. In December, we identified four phases of work we needed to undertake in orderto successfully move from a conceptual application of our PDX technology in thissphere in to a tangible commercial product: Phase 1 Potential application of the PDX reactor to increase yields inconventional "Starch to Ethanol" production Phase 2 Modification of the PDX reactor to maximise increased yields inconventional "Starch to Ethanol" production Phase 3 Gain external third party verification of our results and prove thesystem in a production environment Phase 4 Commercialisation of PDX reactor system In June 2007 we announced the completion of Phase 1 of our programme andreported that initial results had been very encouraging, with the PDX reactordemonstrating a significant improvement over conventional production methods. In October 2007 we completed Phase 2 which demonstrated that a modified PDXreactor system is repeatedly capable of producing the equivalent of 3.3 gallonsof fuel ethanol per bushel of corn. This represents an increase of around 17%over the best current ethanol plant yields and is more than double the overallyield improvement we reported in Phase 1 of our programme, as highlighted in theprogress chart below. Conventional bioethanol plant yield (fuel ethanol) 2.8 gallons per bushelPhase 1 - June 2007 3.0 gallons per bushel +7% Yield improvementPhase 2 - October 2007 3.3 gallons per bushel +17% Yield improvementPhase 3 - commences December 2007 External and commercial validationPhase 4 - commences 2008 Commercialisation We believe these results can be achieved in a production environment with noadditional costs over those seen in conventional ethanol production. Proving the commercial benefits of the PDX reactor system is the key element ofPhase 3 of our programme which is now well underway. We are scheduled tocommence work in a highly respected, independent pilot facility in the USMidwest on 3 December 2007. These trials will take approximately two weeks andwe hope to be in a position to report the results of these trials during January2008. In the run up to Phase 3, we identified the advantages of using an in-line,continuous flow PDX reactor system. The development of this system has beentechnically challenging but we are pleased to say that we have now advanced thissystem to the point where we can achieve the same industry-leading results asthose reported previously from earlier batch process systems. The commercialimplications of this development are that we are now able to produce a morecompact product at a lower cost and offer it to the industry as a retro-fitelement for the front end of the ethanol process. This latter point has majorpositive implications for the penetration rate of the ethanol industry by thePDX technology as we move into the commercialisation phase. We now have a number of opportunities to place our technology into a productionenvironment and we are in discussions with various parties relating to thisprocess. We expect to install a full scale production system in an ethanolproducing plant as early as possible during the first half of 2008. We expectthese trials to last approximately three months and we will then immediatelycommence Phase 4, the commercialisation process of our PDX bioethanol system. In addition to the conventional "starch to ethanol" programme, we are running aparallel research project exploring the potential application of the PDX reactortechnology in the production of Generation 2 ethanol, which is the conversion ofcellulosic material to ethanol. We continue to show greater than 80% conversionof the cellulosic content of wet and dry distillers grains into fermentablesugars from a non-optimised PDX system. We will shortly commence trials on arange of cellulosic materials with a view to starting the second stage,technology optimisation, of these trials. We look forward to reporting on thesetrials as results come to hand. We believe that the application of the PDX technology in the production ofBiofuels represents a major opportunity for Pursuit Dynamics. In order tomaximise the value of this opportunity for our shareholders we have engagedRoyal Bank of Canada Europe Limited, a member company of RBC Capital Markets, toassist us in the valuation of our bioethanol technology and identifying theappropriate routes to market. Decontamination The past year has been one of good progress for Pursuit Dynamics in the area ofdecontamination with our proprietary PDX Basilisk technology. We have madeexcellent technical advances but have seen a number of US Governmentinitiatives, in which we had an active or expected involvement, become subjectto delay or programme change. We have, as previously reported, been informedthat one of the prime contractors with whom we have lodged bids over the pastsix months, has been successful in its bid for a US Government sponsoredprogramme. Contract negotiations in this sensitive area are ongoing. During 2007, we successfully ran a number of third-party decontamination trialsand proved the PDX Basilisk decontamination technology to be effective againstboth surface and airborne threat material, both in the UK and abroad. We havealso developed our proprietary modelling capabilities to a stage where they arenow an integral part of our predictive capabilities in the fields of bothdecontamination and fire suppression. Having successfully proved the PDX Basilisk technology in both practical andcompetitive trials, we no longer need to be reliant purely on governmentsponsored programmes for the further commercialisation of the technology. We arecurrently in the process of partnering with appropriate third parties toaccelerate this commercialisation and look forward to reporting on progress. Pursuit Processing Equipment ("PPE") PPE is our wholly owned systems integrator and is responsible for the directsales of food and brewing equipment. Whilst PPE doubled revenue compared with2006, and turned in a very encouraging first half performance which included anumber of significant full scale production system orders, the second half ofthe year order intake, with the exception of a significant brewing order fromShepherd Neame, was disappointing. We have subsequently made several personneland structural changes to PPE which we believe will result in an improvedongoing performance. The skills and experience within PPE remain important tothe timely prosecution of our commercialisation models. Research & Development Our R&D team has enjoyed an exceptionally active year. Despite the large numberof applications that we have identified where the PDX technology demonstrateseither a technical or commercial advantage, we have focussed their primaryefforts on our bioethanol, decontamination and enhanced atomisation systemprogrammes, which represent our shortest revenue horizons. In addition we arealso actively involved in a number of other areas including the manufacture ofdrilling muds, oil sands separation, soil remediation, blast mitigation and thebroad field of starch hydrolosis. Consolidated profit and loss account for the year ended 30 September 2007 Year ended Year ended 30-Sep 30-Sep 2007 2006 Unaudited Restated Note £ £Turnover 3,051,490 1,496,022Net operating expenses 3 (10,031,847) (5,779,367)Operating (loss) (6,980,357) (4,283,345)Interest receivable 383,086 243,325Interest payable (15,894) (3,844)Loss on ordinary activities before taxation (6,613,165) (4,043,864)Tax credit on loss on ordinary activities 88,097 91,715Loss on ordinary activities after taxation (6,525,068) (3,952,149)Minority interest 640 (2,142)Loss on ordinary activities after minority (6,524,428) (3,954,291)interest (being the loss for the year)Loss per 1p share- Basic and fully diluted 2 11.80p 7.93p There are no recognised gains and losses other than those reported above. Noseparate statement of total recognised gains and losses has therefore beenpresented. All results shown above relate to continuing operations. Consolidated balance sheet at 30 September 2007 Group Group 2007 2006 Unaudited Restated Note £ £Fixed assetsIntangible fixed assets 1,925,040 2,487,837Tangible fixed assets 744,214 691,440Investments - - 2,669,254 3,179,277Current assetsStocks 131,856 161,569Debtors: amounts falling due after more than - -one yearDebtors: amounts falling due within one year 1,631,597 1,032,520Short term investments 7,200,000 -Cash at bank and in hand 318,928 5,071,663 9,282,381 6,265,752Creditors: amounts falling due within one year (1,761,021) (1,093,699)Net current assets 7,521,360 5,172,053Creditors: amounts falling due after one year (31,749) (52,483)Net assets 10,158,865 8,298,847 Capital and reservesCalled up share capital 581,049 508,545Share premium account 24,426,597 16,581,100Merger reserve 4,061,185 4,061,185Profit and loss account (18,895,069) (12,837,726)Total shareholders' funds 10,173,762 8,313,104Minority interest (14,897) (14,257)Capital employed 10,158,865 8,298,847 Consolidated cash flow statement for the year ended 30 September 2007 Year ended Year ended 30-Sep 30-Sep 2007 2006 Unaudited Audited Note £ £Net cash outflow from operating activities 4 (5,429,010) (3,373,289)Returns on investment and servicing of financeInterest received 232,045 243,325Interest paid (236) -Interest element of finance lease payments (15,658) (3,844)Net cash inflow from returns on investment and 216,151 239,481servicing of financeTaxationUnited Kingdom corporation tax - research and - 108,663development tax credit receivedNet cash inflow from taxation - 108,663Capital expenditure and financial investmentPayments to acquire tangible fixed assets (244,501) (394,401)Receipts from sale of tangible fixed assets 18,350 -Net cash outflow for capital expenditure and (226,151) (394,401)financial investmentAcquisitionsPayments to acquire business assets - (5,875)Costs of acquisition - (16,332)Net overdraft acquired - (74,826)Net cash outflow for capital expenditure and - (97,033)financial investmentNet cash outflow before management of liquid (5,439,010) (3,516,579)resources and financingManagement of liquid resources(Increase) in short term deposits with banks (7,200,000) -Net cash outflow from management of liquid (7,200,000) -resourcesFinancingProceeds of ordinary share issue 7,998,250 8,000,007Proceeds received for minority interest share in - -subsidiaryIssuance costs of shares (369,895) (500,308)Proceeds of options exercised 289,646 70,802Capital element of finance lease payments (29,693) (25,846)(Decrease)/increase in loan (2,033) (1,723)Net cash inflow from financing 7,886,275 7,542,932(Decrease)/Increase in cash in the year (4,752,735) 4,026,353 Notes to the financial statements 1. Preparation of the interim financial statements The unaudited results for the year ended 30 September 2007 have been prepared inaccordance 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 2006, with the exception of theeffects of FRS20. The financial information for the year ended 30 September 2007 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 2006, and the balance sheet at 30 September 2006 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 the Groupfinancial statements for the year ended 30 September 2006 was unqualified anddid not contain a statement under either section 237(2) or section 237(3) of theCompanies Act 1985. The results, include, for the first time the impact of the adoption of FRS20 inrelation to share based transactions. Prior period comparatives have beenrestated to reflect the impact of the new accounting policy. 2. Loss per share Basic and diluted loss per share is calculated by dividing the loss aftertaxation of £6,524,428 (2006: £3,954,291) by 55,289,548(2006: 49,896,361)shares, being the weighted average number of Ordinary shares in issue during theyear. 3. Net operating expenses Year ended Year ended 30-Sep 30-Sep 2007 2006 Unaudited Restated £ £Cost of goods sold 2,805,038 1,013,116Research and Development 3,432,320 2,328,606Sales and Marketing 1,568,170 747,852Administration 2,226,319 1,689,792 10,031,847 5,779,366 The following items are included in operatingexpenses Depreciation of tangible fixed assets - owned 157,472 84,495 - held under finance leases 30,705 7,796Amortisation of intangible fixed assets 562,797 557,059Share based payments per FRS 20 467,085 269,653Loss/(Profit) on disposal of fixed assets (14,800) 71,043Operating leases - land & buildings 468,882 271,310 - plant & machinery 38,467 46,519 4. Reconciliation of operating loss to net cash outflow from operating activities 2007 2006 £ £ Unaudited RestatedOperating loss (6,980,357) (4,283,345)Amortisation of intangible fixed assets 562,797 559,928Depreciation of tangible fixed assets 188,177 98,098Share option compensation charge 467,085 269,653(Profit)/loss on disposal of fixed assets (14,800) 71,041Decrease in stocks 29,713 8,441(Increase) in debtors (359,939) (550,131)Increase in creditors 678,314 453,026Net cash outflow from operating activities (5,429,010) (3,373,289) 5. Reconciliation of net cash flow to movement in net funds 2007 2006 £ £(Decrease)/increase in cash in year (4,752,735) 4,026,353Increase in short term deposits 7,200,000 -Decrease in loans 2,033 1,723Decrease/ (increase) in finance leases 29,693 (96,974)Change in net funds from cash flows 2,478,991 3,931,102Net funds at start of year 4,902,676 971,574Net funds at end of year (see note 6) 7,381,667 4,902,676 6. Analysis of movements in net funds At At 01-Oct Non-cash Cash 30-Sep 2006 movements flows 2007 £ £ £ £Cash at bank and in hand 5,071,663 - (4,752,735) 318,928Short term investments - - 7,200,000 7,200,000Finance leases (96,974) - 29,693 (67,281)Loans (72,013) - 2,033 (69,980)Net funds 4,902,676 - 2,478,991 7,381,667 7. Provisions and contingent liabilities The group had no material contingent liabilities at 30 September 2007. At 30September 2006 the group disclosed it had received a claim for £644,146 pluspotential tax from a former employee. During the year the claim was increased toinclude interest and legal costs. Following legal advice and mediation thedirectors have re-assessed this claim, which remains open at 30 September 2007and have made an accrual, included in accruals and deferred income, for theirbest estimate of the probable liability arising from the claim. The amountprovided has not been disclosed due to the commercial sensitivity surroundingthe ongoing claim. 8. Copies of report Copies of the financial statements will be sent to shareholders. Further copieswill be available from the Company Secretary. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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