Gaming Realms Regulatory News (GMR)

30 Jun 2008 07:00



30 June 2008

Pursuit Dynamics PLC ("Pursuit Dynamics" or "the Company")

Interim Results for the six months ended 31 March 2008

Pursuit Dynamics plc (AIM: PDX), the developer and exploiter of the PDX platform technology, today announces its interim results for the six months ended 31 March 2008.

Commercial Highlights

External verification of PDX Ethanol Reactor Tower showed14% increase in bioethanol yield and reduction in fermentation and liquefaction times Royalty agreement signed with Pacific Ethanol

Financial Highlights

Post Period Highlights

Commenting on the results, Andrew Quinn, Chairman, said: "During the first half of the year the Company made considerable advances, both technically and commercially, in a number of areas and this has continued after the period end. 

"The swift progress of our biofuels programme, the commercial launch of our fire suppression technology, and the continued development of our decontamination offering, alongside our established food and brewing applications now mean we have in place products providing real benefits to multiple industries. These events represent the culmination of extensive research and development programmes and now begin to demonstrate the commercial value of the PDX technology. The second half of the year has started strongly and the commercial value of our PDX technology is being demonstrated."

For Further Information, please contact:

Pursuit Dynamics

John Heathcote, Chief Executive Tel: 01480 422050

Cenkos Securities plc

Ian Soanes Tel: 020 7397 8900

Redleaf Communications

Emma Kane / Paul Dulieu Tel: 020 7822 0200

  Notes to Editors

Pursuit Dynamics PLC (AIM: PDX) develops and exploits its proprietary PDX platform technology, which uses supersonic shockwaves to process or atomise liquids and semi-solid solutions in a controllable and energy efficient way. 

Pursuit Dynamics is headquartered in Huntingdon, UK and has an office in Norwalk, Connecticut, USA. Pursuit Processing Equipment Ltd., the processing equipment division of Pursuit Dynamics, operates from facilities in Brooklands, Surrey, UK. 

Further information is available at the Company's website: www.pursuitdynamics.com

Publication quality photographs are available from Redleaf Communications.

 

 CHAIRMAN'S STATEMENT

I am pleased to present the Company's results for the six months ended 31 March 2008 which has been an extremely important and busy period in the Company's history.

The swift progress of our biofuels programme, the commercial launch of our fire suppression technology, and the continued development of our decontamination offering, alongside our established food and brewing applications now mean we have in place products providing real benefits to multiple industries. We will begin to see the financial benefits of this multi revenue stream in the second half of the year.

Financial Results

Turnover increased by 50% in the first half of the year to £1.8m (2007 £1.2m) and matched the turnover of £1.8m achieved in the second half of the financial year to 30 September 2007. 

This performance has been achieved despite the impact of a slow-down in capital investment in the food and brewing industries due to the general economic uncertainty. The present order book will keep our Pursuit Processing Equipment (PPE) facilities fully utilised into calendar 2009. 

Our investment in our sales, distribution, engineering and research and development capabilities during the period, together with the additional costs associated with increased sales volumes, produced a 48% increase in net operating expenses to £5.8m (2007 £3.9m) which has led to an increase in operating loss from £2.7m to £4.0m. 

In April 2008, we raised £6.2m, net of expenses, from a placing of 2,167,000 ordinary shares at 300p per share. These funds provide us with the working capital required to commercialise our PDX Ethanol Reactor. Net cash burn for the period under review was £3.4m (2007 £2.1m).

Operational Review

During the first half of the year the Company made considerable advances, both technically and commercially, in a number of areas and this has continued after the period end. 

The Company successfully commenced the formal commercialisation processes for both its Basilisk® decontamination technology and its Ethanol Reactor system. These achievements, which in themselves represent important landmarks for Pursuit Dynamics, are in addition to the formal launch by Ansul, a division of Tyco, of our FireMist® fire suppression technology, which took place earlier this month. These events represent the culmination of extensive research and development programmes and now begin to demonstrate the commercial value of the PDX technology. 

Biofuels

Generation 1

Since late 2006 our primary Research and Development programme has been centred around bioethanol production. During the first half of the year, this programme continued to progress rapidly and our conventional "starch to ethanol" production system moved from laboratory to external verification and then to full-scale production trials after the period ended. 

External verification of the system was achieved in December 2007 and, at that time we also identified previously unforeseen advantages of the PDX Ethanol Reactor Tower ("ERT") over and above its 14% increase in bioethanol yield - namely a reduction in fermentation and liquefaction times.

In February, we announced that an agreement had been signed with Pacific Ethanol, Inc, a leading US-based producer of ethanol, to install a full-scale production version of our PDX ERT at Pacific Ethanol's Boardman facility in north east Oregon, USA. 

On 2 June 2008 we commenced a 90 day trial period at Boardman. This saw, for the first time, the production of bioethanol using the PDX ERT in a full scale commercial environment. Since then we have been conducting a series of commissioning trials culminating in a continuous, four day trial utilising the standard feedstock for the plant, during which we achieved a six percent ethanol yield uplift. This uplift has been achieved ahead of schedule and, during the remainder of the 90 day trial period, we will be carrying out further production runs of the ERT in order to increase the yield uplift towards previously demonstrated levels. The next trial starts today and will run for up to 30 days to examine long term repeatability and processing optimisations.

Following the 90 day trial period we expect to start receiving revenues from Pacific Ethanol based upon a percentage of the benefits provided by the ERT. We have adopted a royalty system based on the total financial benefits achieved by ethanol plants using the ERT. Even at the current non-optimised level of 6% yield uplift, a typical 100 million gallons per year plant would see gross benefits of around US$17m per annum, based on the current ethanol price and yield improvements alone. Current US ethanol capacity stands at 9.2 billion gallons per year, an increase of 45% over the past year.

We are delighted with the progress and results to date at the Pacific Ethanol Boardman trial, which are ahead of schedule and have exceeded our expectations. As a result, we will shortly establish offices on the West Coast and in the Mid-West of the US in order to be better positioned to accelerate the roll out of our commercial offering to other ethanol producers in the United States. We expect to be in a position to start the sales process of the ERT by the end of July. Fabrication and installation of the systems will be outsourced and the commissioning and customer training processes will be supported by Pursuit personnel based in the US.

We are pleased to announce that we have very recently hired Rick Eastman, the founder of Phoenix Bio-Industries, who joins us as President of Pursuit Dynamics Inc. Rick has been in the renewable fuels industry for over thirty years and built the first dry mill ethanol plant in California at Goshen. He subsequently sold the plant to Altra Biofuels in 2005. For the past three years he has been Director of Technology at Pacific Ethanol Inc. Rick will be based at Pursuit's new office on the West Coast.

Generation 2

In addition to our conventional "starch to ethanol" programme, our Generation 2 programme (cellulosic material to ethanol) has continued to progress. We have adopted a "One Crop Strategy", which means that our efforts are focussed on the products and by-products of a single harvest. In the case of corn, these include the corn grain itself, corn stover, corn cob and the existing co-products from ethanol production, distillers grains. The results from this programme are extremely encouraging and indicate that around 45% of the cellulose in corn fibre can be converted into fermentable sugars. These results have been achieved using a modified PDX reactor employing gases in solution but, importantly, without using any chemicals other than the enzymes required to convert the hydrolysed starches into sugars, thus leaving the co-product fit for animal consumption. As a part of the "One Crop Strategy", corn cob is the next feedstock to be involved in the impact trials. Our cellulosic ethanol programme will be the focus of intense research over the next six months.

Decontamination

In December, the Company signed a contract with a US Government Prime Contractor initially worth a modest US$185,000. This contract has subsequently been extended and will generate a total of US$540,000 this year.

Since the period end, the Company has signed a licensing agreement with EADS Deutschland ("EADS") for the use of the PDX Basilisk technology throughout NATO countries in Europe. This represents the first commercial licensing agreement for Pursuit's Basilisk technology, following an extensive period of demonstrating to, and trialling with, a number of government agencies and defence contractors in various countries. The license has an initial term of two years with exclusivity to EADS for the first year. The license permits EADS to use the Basilisk technology in the disinfection and decontamination of people, personal equipment, vehicles, aircraft, livestock and livestock infrastructure, and buildings as well as hospitals and field hospitals. 

EADS Defence & Security is a systems solutions provider for armed forces and civil security worldwide. Its portfolio ranges from sensors and secure networks through missiles to aircraft and UAVs as well as global security, service and support solutions. In 2007, EADS Defence and Security, with around 22,000 employees, achieved revenues of €5.5bn and EADS, a global leader in aerospace, defence and related services, generated revenues of €39.1bn and employed a workforce of about 116,000.

Fire Suppression

During the period the move towards the launch by Ansul, the Fire and Building Products division of Tyco, of a fire suppression system utilising our revolutionary FireMist technology continued apace. 

In June 2008, after a number of delays, this launch took place at the National Fire Protection Association's World Safety Conference and Exposition in Las Vegas under the brand name Aquasonic. We fully expect Ansul/Tyco to continue its development efforts to expand the initial system configuration to include additional applications and we firmly believe that our FireMist technology has significant advantages over any other technology available on the market today. As a result, we expect to see revenues commencing during the second half of the year and increasing during 2009.

Outlook

The Company operates across multiple industries, generating revenues from sales of capital equipment to the food and brewing, fire, ethanol, and decontamination industries. The second half of the year has started strongly and the commercial value of our PDX technology is being demonstrated. We are adopting an outsourced fabrication model in the US to accommodate our anticipated rapid penetration of the ethanol industry and will be posting a number of our key processing personnel there to achieve this. We anticipate the revenue streams to commence from our various license agreements before year end.

CONSOLIDATED INCOME STATEMENT

for the six months ended 31 March 2008

		Six months ended 31 March 2008	Year ended 30 September 2007	Six months ended 31 March 2007
		Unaudited	Restated *	Restated *
	Note	£	£	£
Turnover		1,762,163	3,051,490	1,222,465
Net operating expenses	4	(5,762,130)	(10,026,108)	(3,890,925)
Operating loss		(3,999,967)	(6,974,618)	(2,668,460)
Interest receivable		164,221	383,086	115,112
Interest payable		(5,317)	(15,894)	(5,614)
Loss on ordinary activities before taxation		(3,841,063)	(6,607,426)	(2,558,962)
Tax credit on loss on ordinary activities		61,000	88,097	75,674
Loss on ordinary activities after taxation		(3,780,063)	(6,519,329)	(2,483,288)
Minority interest		0	640	640
Loss on ordinary activities after minority interest		(3,780,063)	(6,518,689)	(2,482,648)
Loss per 1p share
- Basic and fully diluted		6.48 p	11.79 p	4.8 p
* Refer to note 10 for restatement

  CONSOLIDATED BALANCE SHEET

as at 31 March 2008

		Six months ended 31 March 2008	Year ended 30 September 2007	Six months ended 31 March 2007
		Unaudited	Restated *	Restated *
	Note	£	£	£
Fixed Assets
Intangible fixed assets		1,742,686	1,986,844	2,210,873
tangible fixed assets		638,044	688,149	664,381
		2,380,730	2,674,993	2,875,254
Current assets
Stocks		55,114	131,856	159,469
Debtors	5	2,334,060	1,631,597	1,170,751
Short term investments		3,000,000	5,000,000
Cash at bank and in hand		1,649,982	2,518,928	10,599,699
		7,039,156	9,282,381	11,929,919
Creditors; amounts falling due within one year		(2,189,443)	(1,761,021)	(1,048,165)
Net current assets		4,849,713	7,521,360	10,881,754
Creditors; amounts falling due after one year	6	(11,470)	(31,749)	(38,043)
Net assets		7,218,973	10,164,604	13,718,965
Capital and reserves
Called up share capital		589,472	581,049	578,478
Share premium account		25,011,175	24,426,597	24,172,787
Merger reserve		4,061,185	4,061,185	4,061,185
Foreign exchange reserve		(480)
Profit and loss account	8	(22,427,482)	(18,889,330)	(15,078,588)
Total Shareholders' funds		7,233,870	10,179,501	13,733,862
Minority Interest		(14,897)	(14,897)	(14,897)
Capital employed		7,218,973	10,164,604	13,718,965
* Refer to note 10 for restatement

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 31 March 2008

		Six months ended 31 March 2008	Year ended 30 Sept 2007	Six months ended 31 March 2007
		Unaudited	Restated	Restated
		£	£	£
Net cash outflow from operating activities (see note 7)
Cash generated from operations		(3,516,597)	(5,429,010)	(2,177,795)
Interest paid		0	(236)	0
Interest element of finance lease payments		(5,317)	(15,658)	(5,614)
Corporation tax paid		0	0	0
Net cash generated from operating activities		(3,521,914)	(5,444,904)	(2,183,409)
Cash flows from investing activities
Purchase of tangible fixed assets		(41,992)	(187,949)	(65,814)
Purchase of intangible assets		(45,058)	(56,552)
Proceeds from sale of fixed assets		0	18,350	17,000
(Increase)/decrease in short term deposits with banks		2,000,000	(5,000,000)
Interest Received		164,221	232,045	115,112
Net cash outflow from investing activities		2,077,171	(4,994,106)	66,298
Cash flows from financing activities
Proceeds of ordinary share issue		0	7,998,250	7,998,260
Insurance cost of shares		0	(369,895)	(350,823)
Proceeds of options exercised		593,001	289,646	14,183
Capital element of finance lease payments		(16,928)	(29,693)	(14,439)
(Decrease) in loan		0	(2,033)	(2,034)
Net cash inflow from financing activities		576,073	7,886,275	7,645,147
Net (decrease)/increase in cash and cash equivalents.		(868,670)	(2,552,735)	5,528,036
Cash and cash equivalents at beginning of period		2,518,928	5,071,663	5,071,663
Exchange gains/(losses) on cash balances		(276)
Cash and cash equivalents at end of period		1,649,982	2,518,928	10,599,699

  NOTES TO THE INTERIM FINANCIAL STATEMENTS

for the six months ended 31 March 2008

First time adoption of IFRS

The Group has adopted International Accounting Standards ("IFRS") as adopted by the European Union for the first time in 2008. In prior years, the Group reported under UK Generally Accepted Accounting Principles ("UK GAAP").

The Group has applied IFRS 1 ("First Time Adoption of International Financial Reporting Standards") to provide a starting point for reporting under IFRS and reports its results for the six months ended 31 March 2008 and comparative six month period under IFRS. The Group also presents restated results for the year ended 30 September 2007 covering the first full year from the date of transition, 1 October 2006, and its restated balance sheet at the date of transition.

The adoption of IFRS has resulted in the following main changes in the Group's policies, the revised accounting policies are shown in note 1 below.

Business combinations

Under IFRS1, a company may elect not to apply IFRS 3 ("Business Combinations") retrospectively to transactions occurring prior to the date of transition to IFRS and the Group has elected to take this exemption. The carrying amount of goodwill in the opening IFRS balance sheet is that recorded under UK GAAP at the date of transition. As from the date of transition, goodwill is not amortised but subject to annual tests for impairment.

1 Basis of accounting

The interim financial statements for the period to 31 March 2008 have not been audited or reviewed and do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The Company's statutory accounts for the year ended 30 September 2007, prepared under UK GAAP have been delivered to the Registrar of Companies. The report of the Auditors included in these statutory accounts was not qualified and did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985. 

The financial statements for the year to 30 September 2007 were audited. The restatement of these figures to reflect the introduction of IFRS has not yet been subject to audit and as such comparative figures for that period are disclosed as unaudited.

2. Loss per share

The calculation of basic and diluted loss per share is based on a loss on ordinary activities after tax of £3,780,063 (year ended 30 September 2007 restated: £6,518,692 and six months ended 31 March 2007 restated: £2,482,648) and a weighted average number of shares of 58,337,571 (30 September 2007: 55,289,548 and 31 March 2007: 51,727,021)

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. Net operating expenses

		Six months Ended 31 March 2008	Year ended 30 Sept 2007	Six months ended 31 March 2007
		Unaudited	Restated	Restated
		£	£	£
Cost of goods sold		1,792,240	2,805,038	869,850
Research and Development		1,535,452	3,432,320	1,206,240
Sales and Marketing		787,009	1,568,170	679,576
Administration		1,647,429	2,220,580	1,135,259
		5,762,130	10,026,108	3,890,925
The following are items included in operating expenses
Depreciation of tangible fixed assets
- owned		76,744	154,635	79,177
- held under finance leases		15,353	30,705	7,796
Amortation of intangible fixed assets		289,213	559,895	279,315
Share Based Payments per FRS20		241,914	467,085	241,786
(Profit)/loss on disposal of fixed assets		0	(14,800)	(13,449)
Operating leases - land & buildings		200,563	468,882	181,444
- plant & machinery		42,610	38,467	3,165
		866,397	1,704,869	779,234

  5. Debtors

		Six months ended 31 March 2008	Year ended 30 September 2007	Six months ended 31 March 2007
		Unaudited	Restated	Restated
		£	£	£
Trade debtors		922,481	619,280	304,394
Corporation tax recoverable		265,026	203,562	191,136
Other debtors		556,657	657,456	128,664
Prepayments and accrued income		589,896	151,299	546,557
		2,334,060	1,631,597	1,170,751

6. Creditors: amounts falling due within one year

		Six months ended 31 March 2008	Year ended 30 September 2007	Six months ended 31 March 2007
		Unaudited	Restated	Restated
		£	£	£
Trade creditors		1,039,270	599,901	295,033
Sundry creditors		135,693	35,532	145,283
Other taxation and social security		316,129	111,242	158,473
Accruals and deferred income		628,371	944,366	379,398
Loan due to related undertakings		69,980	69,980	69,978
		2,189,443	1,761,021	1,048,165

  7. Cash generated from operations: for the six months ended 31 March 2008

		Six months ended 31 March 2008	Year ended 30 September 2007	Six months ended 31 March 2007
		Unaudited	Restated	Restated
		£	£	£
Operating loss		(3,999,967)	(6,974,618)	(2,668,460)
Adjustments for:
- Amortation of intangible fixed assets		289,213	559,895	279,315
- Depreciation of tangible assets		92,097	185,340	86,973
- (Profit)/loss on disposal of fixed assets		0	(14,800)	(13,449)
- Share Option Compensation Charge		241,914	467,085	241,786
- Foreign exchange losses		(204)
Changes in working capital:
- Decrease/(increase) in stocks		76,742	29,713	2,102
- (Increase)/decrease in debtors		(641,463)	(359,939)	(62,561)
- (Increase)/decrease in creditors		425,071	678,314	(43,501)
Cash generated from operations		(3,516,597)	(5,429,010)	(2,177,795)

8. Reconciliation of movements in shareholders' funds

		31 March 2008	30 September 2007	31 March 2007
		Unaudited	Restated	Restated
		£	£	£
Proceeds on Ordinary share issue		0	7,998,250	7,998,260
Proceeds on Ordinary shares issued on exercise of options		593,001	289,646	14,183
Issuance costs of shares		0	(369,895)	(350,823)
Currency exchange differences		(480)
Loss for the financial year		(3,780,063)	(6,518,689)	(2,482,648)
Share Option compensation charge		241,914	467,085	241,786
Shareholders' funds at start of year		10,179,498	8,313,104	8,313,104
Shareholders' funds at 31 March 2008		7,233,870	10,179,501	13,733,862

9. Copies of report

Copies of the interim report will be sent to shareholders. Further copies will be available from the Company Secretary.

 

 

10. Reconciliation of income statement and balance sheet from UK GAAP to IFRS

(a) Consolidated income statement for the year ended 30 September 2007

	As reported under	IFRS 3	IAS 38	IAS 7	IFRS
	UK GAAP	adjustments	adjustments	adjustments
		[a]
	£	£	£	£	£
Turnover	3,051,490				3,051,490
Net operating expenses	(10,031,847)	5,739			(10,026,108)
Operating loss	(6,980,357)	5,739	0	0	(6,974,618)
Interest receivable	383,086				383,086
Interest payable	(15,894)				(15,894)
Loss on ordinary activities before taxation	(6,613,165)	5,739	0	0	(6,607,426)
Tax credit on loss on ordinary activities	88,097				88,097
Loss on ordinary activities after taxation	(6,525,068)	5,739	0	0	(6,519,329)
[a] UK IFRS 3 adjustments represent the difference between amortisation of goodwill under UK GAPP and the amortisation of intangible assets under IFRS

  (b) Consolidated income statement for the six months ended 31 March 2007

	As reported under	IFRS 3	IAS 38	IAS 7	IFRS
	UK GAAP	adjustments	adjustments	adjustments
		[a]
	£	£	£	£	£
Turnover	1,222,465				1,222,465
Net operating expenses	(3,893,793)	2,868			(3,890,925)
Operating loss	(2,671,328)	2,868	0	0	(2,668,460)
Interest receivable	115,112				115,112
Interest payable	(5,614)				(5,614)
Loss on ordinary activities before taxation	(2,561,830)	2,868	0	0	(2,558,962)
Tax credit on loss on ordinary activities	75,674				75,674
Loss on ordinary activities after taxation	(2,486,156)	2,868	0	0	(2,483,288)
[a] UK IFRS 3 adjustments represent the difference between amortisation of goodwill under UK GAPP and the amortisation of intangible assets under IFRS

  (c) Consolidated balance sheet as at 30 September 2007

	As reported under	IFRS 3		IAS 38	IAS 7	IFRS
	UK GAAP	adjustments		adjustments	adjustments
		[a]		[b]	[c]
	£	£		£	£	£
Fixed Assets
Intangible fixed assets	1,925,040	5,739		56,065		1,986,844
tangible fixed assets	744,214			(56,065)		688,149
	2,669,254	5,739		0	0	2,674,993
Current assets
Stocks	131,856					131,856
Debtors	1,631,597					1,631,597
Short term investments	7,200,000				(2,200,000)	5,000,000
Cash at bank and in hand	318,928				2,200,000	2,518,928
	9,282,381	0		0	0	9,282,381
Creditors; amounts falling due within one year	(1,761,021)					(1,761,021)
Net current assets	7,521,360	0		0	0	7,521,360
Creditors; amounts falling due after one year	(31,749)					(31,749)
Net assets	10,158,865	5,739		0	0	10,164,604
Capital and reserves
Called up share capital	581,049					581,049
Share premium account	24,426,597					24,426,597
Merger reserve	4,061,185					4,061,185
Foreign exchange reserve
Profit and loss account	(18,895,069)	5,739				(18,889,330)
Total Shareholders' funds	10,173,762	5,739		0	0	10,179,501
Minority Interest	(14,897)					(14,897)
Capital employed	10,158,865	5,739		0	0	10,164,604
[a] UK IFRS 3 adjustments represent the difference between amortisation of goodwill under UK GAPP and the amortisation of intangible assets under IFRS
[b] IAS 38 adjustments relates to the reclassifation of computer software as intangible assets
[c] IAS 7 adjustments relates to the reclassification of short term investments of 90 days or under as cash holdings

  (d) Consolidated balance sheet as at 31 March 2007

	As reported under	IFRS	IAS 38	IAS 7	IFRS
	UK GAAP	adjustments	adjustments	adjustments
		[a]	[b]	[c]
	£	£	£	£	£
Fixed Assets
Intangible fixed assets	2,206,439	2,868	1,566		2,210,873
tangible fixed assets	665,947		(1,566)		664,381
	2,872,386	2,868	0	0	2,875,254
Current assets
Stocks	159,469				159,469
Debtors	1,170,751				1,170,751
Short term investments
Cash at bank and in hand	10,599,699				10,599,699
	11,929,919	0	0	0	11,929,919
Creditors; amounts falling due within one year	(1,048,165)				(1,048,165)
Net current assets	10,881,754	0	0	0	10,881,754
Creditors; amounts falling due after one year	(38,043)				(38,043)
Net assets	13,716,097	2,868	0	0	13,718,965
Capital and reserves
Called up share capital	578,478				578,478
Share premium account	24,172,787				24,172,787
Merger reserve	4,061,185				4,061,185
Foreign exchange reserve
Profit and loss account	(15,081,456)	2,868			(15,078,588)
Total Shareholders' funds	13,730,994	2,868	0	0	13,733,862
Minority Interest	(14,897)				(14,897)
Capital employed	13,716,097	2,868	0	0	13,718,965
[a] UK IFRS 3 adjustments represent the difference between amortisation of goodwill under UK GAPP and the amortisation of intangible assets under IFRS
[b] IAS 38 adjustments relates to the reclassification of computer software as intangible assets

 

 

 

(e) Consolidated balance sheet as at 30 September 2006

	As reported under	IFRS	IAS 38	IAS 7	IFRS
	UK GAAP	adjustments	adjustments	adjustments
		[a]	[b]	[c]
	£	£	£	£	£
Fixed Assets
Intangible fixed assets	2,487,837		2,349		2,490,186
tangible fixed assets	691,440		(2,349)		689,091
	3,179,277	0	0	0	3,179,277
Current assets
Stocks	161,569				161,569
Debtors	1,032,520				1,032,520
Short term investments
Cash at bank and in hand	5,071,663				5,071,663
	6,265,752	0	0	0	6,265,752
Creditors; amounts falling due within one year	(1,093,699)				(1,093,699)
Net current assets	5,172,053	0	0	0	5,172,053
Creditors; amounts falling due after one year	(52,483)				(52,483)
Net assets	8,298,847	0	0	0	8,298,847
Capital and reserves
Called up share capital	508,545				508,545
Share premium account	16,581,100				16,581,100
Merger reserve	4,061,185				4,061,185
Foreign exchange reserve
Profit and loss account	(12,837,726)				(12,837,726)
Total Shareholders' funds	8,313,104	0	0	0	8,313,104
Minority Interest	(14,257)				(14,257)
Capital employed	8,298,847	0	0	0	8,298,847
[b] IAS 38 adjustments relates to the reclassification of computer software as intangible assets

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