RNS Number:0585L
Pursuit Dynamics PLC
14 May 2003
Pursuit Dynamics Plc (or 'the Company')
Interim Results
Pursuit Dynamics plc, the AIM listed steam specialist, announces its interim
results for the period ended 31 March 2003.
Overview:
* Results in line with budgeted expenditure
* Main efforts now centred on the PDX process pumping technology
* Commercialisation opportunities opening up with a number of approaches
from companies from broad range of sectors
* New external marketing company appointed
* Imminent appointment of Business Development Manager
John Heathcote, CEO said: "We're very excited about the future of Pursuit and
its growth potential. We are currently generating a vast amount of interest
from a number of companies across a range of industries and hope to sign a
commercial deal in the not too distant future. We have concentrated our efforts
on the PDX process pumping technology and are now in a position to roll out the
technology for development into a saleable product. To assist us in this, we
have appointed an external marketing company and also hope to employ an in-house
Business Development Manager to help us through the next phase of changing from
an R&D company to a revenue generating concern."
Enquiries to:
John Heathcote CEO (01763) 250592
Gary Pyle FD (01763) 250592
Hugo de Salis St Brides Media (0207) 2424477
Rhodri Cruwys Numis Securities (0207) 7761500
I am pleased to present on behalf of the Board of Directors, Pursuit Dynamics
plc's interim results for the six months ended 31 March 2003. During the period
we have once again made significant progress in the development of our unique
steam process pumping and propulsion technology. We continue to be approached by
an ever-increasing number of companies from a broad range of sectors and
potential new avenues to commercialisation are constantly opening up.
The results remain in line with the budgeted expenditure for the ongoing
development of our technology. Accordingly, during the period the Company
recorded a loss of #844,389 (#1,593,189 year ended
30 September 2002), stated after interest receivable of #14,786 (#69,323 year
ended 30 September 2002) and a research and development tax credit receivable of
#nil (#158,362 year ended
30 September 2002).
At current cash burn rates the Directors believe that the Company's existing
cash resources are sufficient to fund its activities for a period of approaching
a year from the date of this announcement.
The Board of Directors is not recommending a dividend.
Business review
The Company has reached a significant stage in its development. We have invested
heavily in our research and development programme, and are now directly pursuing
avenues to commercialisation.
Our main efforts are now centred on our PDX process pumping technology. The
development of a pumping unit with no moving parts, unique solids handling
capabilities and mixing and multiple entrainment capacity has dramatically
transformed our business model. We have completed extensive tests at our site in
Hertfordshire to prove the capabilities of the PDX Technology and are now in a
position to roll the product out in the near future, converting our research and
development expenditure into realisable revenues. In tandem with this, we have
initiated an intensive marketing effort to increase the profile of our
technology and generate commercial interest both nationally and internationally.
In February this year, we signed an agreement with Sonico Ltd, whereby Sonico
undertook a programme to prove our PDX Technology for a number of applications
within the water industry. Supported by a number of UK water companies, Sonico
has installed and is currently testing a PDX unit in Edmonton, Canada. Provided
that the results are positive, we will enter into negotiations with Sonico with
a view to securing a licence deal.
New applications for the PDX Technology are continually being explored. We are
currently in discussions with a number of companies from a wide range of
industries including food processing, sewage treatment, pharmaceutical
manufacturing, mining, environmental clean-up operations and other fluid
transfer or mixing applications, with a view to moving into commercial
arrangements with them.
We remain committed to developing the marine drive and progress continues to be
made in this area as a direct result of the technical advances incorporated in
the process pumping technology. The recreational and light commercial marine
markets are extensive and we hope to be in a position to market the drive as
soon as possible.
However, the Board of Directors has prioritised the development of the PDX
process pumping technology judging that this is more likely to provide the near
term revenues.
Our key near term objective is to bring our technology to commercialisation. For
this reason, we have appointed IMS Marketing Communications Ltd and are in the
process of appointing a Business Development Manager to ensure new business
opportunities are fully developed and exploited. We are confident of the
direction in which we are taking the Company and look forward to the future with
much anticipation.
Ronald Trenter
Chairman
14 May 2003
Consolidated profit and loss account
For the six months ended 31 March 2003
Six months Year Six months
ended ended ended
31 March 30 September 31 March
2003 2002 2002
Unaudited Audited Unaudited
# # #
Administrative expenses (328,078) (654,829) (378,955)
Research and development (531,021) (1,165,933) (572,341)
Group operating loss (859,099) (1,820,762) (951,296)
Interest receivable 14,786 69,323 42,414
Interest payable and similar charges (76) (112) -
Group loss on ordinary activities
before taxation (844,389) (1,751,551) (908,882)
Tax credit on loss on ordinary activities - 158,362 42,322
Group loss for the period (844,389) (1,593,189) (866,560)
Loss per 1p ordinary share
- Basic and diluted 2.21p 4.17p 2.3p
There is no difference between the loss on ordinary activities before taxation
and the loss for the year stated above and their historical cost equivalents.
There are no recognised gains and losses other than those reported above. No
separate statement of total recognised gains and losses has therefore been
presented.
All activity related to continuing operations.
Consolidated balance sheet
As at 31 March 2003
31 March 30 September 31 March
2003 2002 2002
Unaudited Audited Unaudited
# # #
Fixed assets
Intangible fixed assets 4,383,030 4,661,560 4,940,093
Tangible fixed assets 132,395 151,085 170,365
4,515,425 4,812,645 5,110,458
Current assets
Debtors 174,440 219,558 161,618
Short term investments 602,498 1,180,612 1,838,405
Cash at bank and in hand 74,451 54,412 27,660
851,389 1,454,582 2,027,683
Creditors: amounts falling due within one year (68,978) (125,002) (269,287)
Net current assets 782,411 1,329,580 1,758,396
Net assets 5,297,836 6,142,225 6,868,854
Capital and reserves
Called up share capital 381,581 381,581 381,581
Share premium account 8,797,229 8,797,229 8,797,229
Profit and loss account (3,880,974) (3,036,585) (2,309,956)
Total equity shareholders' funds 5,297,836 6,142,225 6,868,854
Approved by the Board of Directors on 14 May 2003.
Consolidated cash flow statement
For the six months ended 31 March 2003
Six months Period Six months
ended ended ended
31 March 30 September 31 March
2003 2002 2002
Unaudited Audited Unaudited
# # #
Net cash outflow from operating
activities (see note 4) (567,211) (1,386,700) (704,393)
Returns on investment and servicing of finance
Interest received 14,786 69,323 42,414
Interest paid (76) (112) -
Net cash inflow from return on investment and
servicing of finance 14,710 69,211 42,414
Taxation
United Kingdom Corporation tax
Research and development tax credit received - 42,362 -
Net cash inflow from taxation - 42,362 -
Capital expenditure and financial investment
Payments to acquire tangible fixed (5,574) (109,735) (104,997)
assets
Receipts from sale of short term investments - 10,787 10,787
Net cash outflow from capital expenditure
and financial investment (5,574) (98,948) (94,210)
Net cash outflow before management of liquid
resources and financing (558,075) (1,374,075) (756,189)
Management of liquid resources
Decrease in short term deposits with 578,114 1,252,321 607,683
banks
Net cash inflow from management of
liquid resources 578,114 1,252,321 607,683
Increase/(decrease) in cash 20,039 (121,754) (148,506)
1. Preparation of the interim financial statements
The unaudited results for the six months ended 31 March 2003 have been prepared
in accordance with UK generally accepted accounting principles.
The accounting policies applied are those set out in the Group's Annual Report
and Accounts for the period ended 30 September 2002.
The financial information for the six months ended 31 March 2003 is unaudited
and does not constitute statutory accounts within the meaning of the Companies
Act 1985. The profit and loss account and cash flow statement for the year ended
30 September 2002, and the balance sheet at 30 September 2002 are an abridged
statement of the full group financial statements for that year which have been
delivered to the Registrar of Companies. The report of the Auditors on the group
financial statements for the year ended 30 September 2002 was unqualified and
did not contain a statement under either section 237(2) or section 237(3) of the
Companies Act 1985.
Going concern
The Board of Directors believes that, based on current forecasts, the Company's
existing cash resources are sufficient to allow it to continue as a going
concern for a period of approaching a year from the date of this announcement.
Within that time the Directors plan to enter into commercial agreements or, if
necessary, to secure additional funds by raising further finance. The Directors
believe that they would be able to obtain such funds and therefore that it is
appropriate for these results to be prepared on the going concern basis.
2. Loss per share
The calculation of basic loss per share is based on a loss on ordinary
activities after tax of #844,389 (2002: #1,593,189) and a weighted average
number of shares of 38,158,100 (2002: 38,158,100)
3. Dividend
The directors do not intend to recommend the payment of any dividends until they
consider it prudent to do so, having regard to the need to retain sufficient
funds to finance the development of the group's activities.
4. Reconciliation of operating loss to net cash outflow from operating
activities
Six months Year ended Six months
ended 30 September ended
31 March 2003 2002 31 March 2002
Unaudited Audited Unaudited
# # #
Operating loss (859,099) (1,820,762) (951,296)
Amortisation 278,530 557,059 278,526
Depreciation 24,264 42,369 18,351
Profit on sale of investments - - (3,816)
Amounts written off marketable securities - 9,339 -
Decrease/(increase) in debtors 45,118 (13,054) (28,792)
Decrease in creditors (56,024) (161,651) (17,366)
Net cash outflow from operating activities (567,211) (1,386,700) (704,393)
5. Copies of report
Copies of the interim statement will be sent to shareholders. Further copies
will be available from the Company Secretary.
This information is provided by RNS
The company news service from the London Stock Exchange
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