31st Oct 2005 07:00
Pursuit Dynamics PLC31 October 2005 31 October 2005 PURSUIT DYNAMICS PLC TRADING UPDATE Pursuit Dynamics plc ("Pursuit" or "the Company") today issues a trading update. The period since the 2004 year end has been both exciting and rewarding. TheCompany achieved a number of important milestones, including the launch of itsfirst products, the PDX Sonic range, to the food industry in London, thecreation of a European and North American distribution network, the firstcommercial contracts for its PDX FireMist and PDX Basilisk atomisationtechnologies, successful brewing trials with an industry leader and successfultrials of the PDX technology in oil sands recovery and paper manufacturing. The PDX Sonic range of products has developed excellent sales traction in thepast few months: licensees of the systems now include some of the world'slargest food manufacturing and beverage companies including Premier Foods,Coca-Cola Enterprises, Campbells and Geest Foods. Post the year-end Pursuit hassigned its first European licence with Verstegen Spices and Sauces BV in Belgiumand received its first repeat order in the UK. During the period under reviewover 60 food companies have witnessed demonstrations of the Sonic system atPursuit's headquarters in Royston and there are now seven Sonic demonstrationsystems globally, largely funded by the distribution network, and these are inconstant demand. Distributor training and support programmes have beenestablished and sales enquiries are now being received on a regular basis. TheCompany licensed its first US system in August, ahead of the formal launch tothe North American market last week in Chicago. The Company looks forward tobeing able to report on the results of this shortly. Pursuit is moving towards asustainable, growing business based on its food and beverage processingapplications alone. In fire suppression, where the Company's technology offers a step change inperformance compared to products on the market today, Pursuit has furtherdeveloped the PDX(R) FireMist system and has begun the process ofcommercialisation. Further live fire trials in the UK over the past few monthshave confirmed the initial view that the performance of FireMist offerssubstantial benefits in the field of fire suppression. In March 2005, the USDepartment of Defense's Naval Research Laboratory in Washington invited Pursuitto trial the FireMist system aboard ex-USS Shadwell in Mobile Bay, Alabama.However, the widespread disruption caused by Hurricane Katrina has caused thetrials to be deferred until early 2006. In July 2005, Pursuit announced the signing of a one year contract with DARPA, aUS government defence research agency, to evaluate its PDX(R) Basiliskdecontamination system. The system has a number of applications fordisinfection, human and animal healthcare and the defence industry, principallyin chemical and biological defence applications. In addition, the Company hasbeen trialling Basilisk with DuPont in a civilian capacity, using two of itsproprietary chemicals. The system could be applied in the field of disinfectionto protect against the spread of animal and human disease threats such as footand mouth disease and avian flu. PDX technology in the brewing industry is progressing well. Trials with a globalmajor brewing company have been ongoing since May 2005. The Company expects tostart the commercialisation phase of this aspect of its platform technology in2006. PDX systems have demonstrated significant potential cost savings duringthese trials. A feasibility study during 2005 by Purvin and Gertz Inc, a leading firm of oilindustry consultants, identified a number of potential applications for the PDXtechnology in oil production and refining. In order to pursue potentialapplications for the technology, the Company formed a subsidiary, PursuitResources Limited. The selected partners have a successful track record in theoil industry and Pursuit retains ownership of 80% of the subsidiary. Thetechnology is licensed to the subsidiary for a two-year period during which timethe partners are obliged to fund the initial development of Pursuit Resources'business. During the period, Pursuit Resources Ltd used the PDX technology toundertake bitumen separation trials on Canadian oil sands. Separation levels inexcess of 90% were achieved, without the use of chemicals. Pursuit is currentlyengaged in efforts to commercialise this aspect of the technology. In September,Pursuit Resources completed a successful two-week trial sequence with a majoroil waste processor in Alberta, Canada, which demonstrated significant potentialcost savings over existing technologies. Revenue and contractual orders to date, including two PDX FireMist trials, totalapproximately £350,000. Of the total of ten licences and FireMist contractsachieved to date, revenue for only five Sonic licenses was recognised by 30September. The success of our sales and marketing effort has meant that only thevery first units have been priced at a discount to the normal £60,000 unitprice. Turnover in the year to 30 September 2005 is expected to be approximately£90,000 and losses after taxation, reflecting the increased level of activitysurrounding the commercial launch of the first products, are expected to haveincreased to approximately £2.7 million, after charging depreciation andamortisation of approximately £632,000. Commenting on the outlook, John Heathcote, Chief Executive, said, "We are at avery exciting stage of our development. We have made huge strides over the pastyear in maturing a number of developmental applications for the PDX technologyand we have launched our first commercial products. We're on track to build aviable business based on the PDX applications in the food and beverageindustries alone, whilst accelerating the commercialisation of a number of otherindustry areas. We are confident that our business plan is robust and that thecurrent exploitation of the platform PDX technology will produce significantvalue for shareholders in the near future." -Ends- For further information on Pursuit Dynamics, please visitwww.pursuitdynamics.com or contact: John Heathcote, CEO Simon Hudson/Richard Sunderland/Gary Pyle, CFO Rachel DrysdalePursuit Dynamics plc Tavistock CommunicationsTel: +44 (0)1763 250592 +44 20 7920 3150 ABOUT PURSUIT DYNAMICS Pursuit Dynamics plc owns, and is developing, a patent protected platformtechnology that has the potential to revolutionise manufacturing techniquesacross numerous industries. Pursuit Dynamics operates as a research anddevelopment and licensing company and has already proved the application of itssystem in the food industry. Other industry applications under developmentinclude applications for waste treatment, brewing, fire suppression,decontamination, oil, and pulp and paper. The core technology is based on agas-driven supersonic shockwave producing controllable mixing, heating and flowrates. The device, contained in one compact unit, has no moving parts. The PDX(R) Sonic fluid processing product, which is a highly efficient reactorsystem for use in the manufacture of prepared foods and beverages, was launchedin January 2005 and has been licensed to a number of leading industry playersincluding Campbell Grocery Products Ltd, Premier Foods, Geest Foods Ltd,Verstegen Spices and Sauces B.V. and Greene King plc. In July 2005, PDX announced the signing of a one year contract with DARPA, a USgovernment defence research agency to evaluate its PDX(R) Basiliskdecontamination system. The system has a number of applications fordisinfection, human and animal healthcare and in the defence industry,principally in chemical and biological defence applications. Pursuit Dynamics is headquartered in Hertfordshire UK and has a US office inDarien, Connecticut. It is quoted on the AIM market of the London Stock Exchange(ticker: PDX) and at the recent share price has a capitalisation of some £100million. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Gaming Realms