Pursuit Dynamics – Preliminary Results and CEO Resignation

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Pursuit Dynamics Plc (LSE:PDX) announced on Thursday their preliminary results for the 2010-2011 fiscal year and the resignation of their CEO,Roel Pieper. The news prompted a drop in share price of 54% to 93.5 p just before 10:00 GMT.

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The company announced on Thursday morning their preliminary results for the fiscal year ending 30 September 2011.

In the statement, PDX indicated that revenues for this past fiscal year were £490,000 compared to £128,000 in the previous year. Most of this revenue came from the Brewing Line of Business (LOB), though the Bioenergy LOB has also generated maiden revenues.

Despite their increase in revenues, the company has reported a loss before tax of £15.3 million, up 68% compared to a loss of £89.1 million in the previous year. PDX blames this loss on the increased investment in their company to produce future revenues.

Rights Issue Agreement

Pursuit Dynamics also announced their intention to raise £9.38 million through a rights issue with a commitment from institutional investors to subscribe to all new shares issued. The prospectus is expected to be issued by the end of February 2012, it will need to be approved by the company’s advisor, Cenkos and the FSA, and it must contain a statement about the efficiency of working capital available to the group.

Further Operations Updates

The company indicated that four of their LOBs generated revenue during the past fiscal year, compared to only one in the prior period. The Brewing, Food, & Beverage business introduced two new products in brewing and established six operating reference sites, while the Bioenergy business expects to produce 470 million gallons per annum of ethanol across 5 plants by the end of 2011.

CEO Resigns

The company released a further announcement Thursday morning, indicating that the past CEO, Roel Pieper has resigned for personal reasons and will return to his venture capital activities. Pursuit Dynamics assigned Jeremy Pelczer as interim CEO. Pelczer has been a Non-Executive Director on the board since June 2011 and has previous experience with Thames Water and American Water.

Chairman’s Statement

The company’s Chairman, Andy Quinn commented on the news:

“The Company has made progress during the year and we’ve developed product applications that have found traction with major industrial customers across multiple lines of business, although the revenues generated from these customers have been slower to emerge than we had expected. This is a timing issue and the delay means that income which we expected in the 2010/11 fiscal year should instead be recognised in the coming year. Jeremy Pelczer has been appointed Interim CEO following Roel Pieper’s resignation. We enter 2012 with improving contract visibility and confidence that the revenue profile of the business will develop as expected. The planned fundraising we have announced today should assure shareholders, customers, and suppliers that our business is well-equipped financially to take full advantage of the opportunities we are generating.”

References PDX CEO Resigns

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