Gaming Realms Regulatory News (GMR)

22 Mar 2006 07:00

Pursuit Dynamics PLC22 March 2006 22 March 2006 PURSUIT DYNAMICS plc ("Pursuit Dynamics", "Pursuit" or "the Company") ACQUISITION OF DISTRIBUTION CAPABILITY Pursuit Dynamics, the developer and licenser of the innovative and patented PDX(R) technology, which has applications across a broad range of industries, is pleased to announce the acquisition of an additional distribution capability - initially for its products targeted at the food and beverage industries. The acquisition takes the form of the purchase of the assets and certainliabilities of Brooklands Process Technology (Skerman) Limited ("BPT Skerman")for a token consideration of £5,000 and the provision of a £75,000 inter-companyloan to repay existing borrowings. BPT Skerman is a long-established distributorand integrator of capital equipment and systems into the food manufacturing andbeverage industries and its customer base includes some of the sector'sbest-known companies. BPT Skerman is highly regarded in the food equipment industry and, as one ofPursuit's U.K. distributors, has already proved itself capable of successfullyconverting customers to the PDX technology. Pursuit has identified a number ofimmediate benefits that this acquisition will make available to BPT Skerman,principally specialist management skills, balance sheet credibility and directsales and technical support. Pursuit and BPT Skerman believe that the turnoverand profitability of the acquired business can be greatly enhanced with theaddition of these further resources. The directors believe that adding a process design, fabrication and distributioncapability will create additional benefits for Pursuit and will accelerate thepenetration of the PDX Sonic products into the market place. In the year to 31 March 2005, BPT Skerman generated turnover of £2.9 million andrealised an operating profit of £232,000. Future sales of PDX Sonic systems viathis channel will provide Pursuit with additional margin, as the Company will beable to recognise the sale of the entire system and not just the elementrepresented by the PDX technology. Commenting on the acquisition, John Heathcote, Pursuit's Chief Executive, said:"This acquisition will allow us to get closer to our end-user customers and towork alongside our existing distributors in a more pro-active way. Inparticular, we will have greater control over our pricing model, which willprotect the margins of both our distributors and ourselves. This transactionadds high quality people, industry contacts, revenues and a well known name inthe sector. BPT Skerman will form part of Pursuit Processing Equipment (adivision of Pursuit Dynamics plc) and we will insert our brewing, dairy andbeverage operations into this division as they mature. Pursuit is very pleasedto have successfully completed this acquisition." For further information on Pursuit Dynamics, please visitwww.pursuitdynamics.com or contact: John Heathcote, CEO Simon HudsonGary Pyle, CFO Rachel DrysdalePursuit Dynamics plc Tavistock CommunicationsTel: +44 (0)1480 422050 Tel: +44 (0)20 7920 3150 or 07966 477256 ABOUT PURSUIT DYNAMICSPursuit Dynamics plc owns, and is developing, a patented platform technologywith the potential to revolutionise manufacturing techniques across numerousindustries. The core technology is based on a gas driven, supersonic shockwavethat produces a controllable mixing, heating and flow rate. Pursuit Dynamicsoperates as a research and development and licensing company and has alreadyproved the application of its system in the food industry. Its PDX (R) Sonic fluid processing product, which is a highly efficient systemfor use in the manufacture of prepared foods and soft drinks, was launched inJanuary 2005 and has been licensed to a number of leading industry players inthe EU, USA and Central America. Other potential industry applications under development include applications forwaste treatment, brewing, pharmaceuticals, personal healthcare, on-line turbinewashing and oil and gas. In addition to its almost universal applicability to process flow manufacturingindustries, the technology has been adapted to address the very large marketsfor fire and explosion suppression. FireMist(R), Pursuit Dynamics' patentedproduct, the most effective of all commercially available water mist productionand distribution systems, can successfully extinguish Class A and B fires inbuilding and aircraft simulation fire tests. In December 2005, Pursuit grantedan exclusive global licence for FireMist to Tyco Fire & Building Products, adivision of Tyco International Ltd (NYSE: TYC; BSX: TYC), which is the worldleader in fire suppression. In July 2005, Pursuit announced the signing of a one year contract with DARPA, aUS governmental defence research agency to use 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 Cambridgeshire, UK and has a US office inDarien, Connecticut. It is quoted on the AIM market of the London Stock Exchange(ticker: PDX). This information is provided by RNS The company news service from the London Stock Exchange