Gaming Realms Regulatory News (GMR)

28 June 2012

Pursuit Dynamics plc

("PDX" or the "Company")

Update on Strategic Review

Pursuit Dynamics plc (AIM:PDX), the developer of the PDX® Atomiser and PDX® Reactor products and technology, announces the results of the Strategic Review referenced in its Interim Results statement on 24 May 2012.

In the near term the Company will focus on two of its principal Lines of Business ("LOBs"): Public Health & Safety and Brewing, Food & Beverage, due to the higher visibility sales opportunities and proven products in these areas with the potential to build businesses of scale. Revenues are expected to come principally from the pipeline of Brewing, Food & Beverage opportunities and sales of the First Responder System and M800 decontamination products.

A process has started to identify suitable investors, partners, or other means of preserving future value from the Company's IP, in its Waste Treatment and US BioEnergy LOBs.

Recently the Company's business development activity has focussed heavily on a small number of potentially significant opportunities in multiple LOBs, and the failure to convert those opportunities into exclusive licences means that current year revenues are expected to be around £1m with strong sales growth to come in the next financial year, driven by established products and those now coming into production.

The Board has reviewed the organisation and plans to reduce the head-count to 40 from the current level of 61. This will represent a 50 per cent. reduction in head-count since 1 October 2011. As part of these actions the Company's CFO, Richard Webster, will be stepping down from the Board on 30 September 2012. Richard's responsibilities will be assumed by the Company's current Head of Finance, Alistair Miller. These actions, along with other cost reduction initiatives, will reduce the cost of running the business to approximately £450,000 per month.

There are a number of strategies available to the Company for funding its growth including industrial licences, joint ventures and partnerships and the Board continues to explore a range of options. The cash balance as at 22 June 2012 was £6.1m.

The Company is making good progress in recruiting a new permanent CEO. 

Interim CEO, Jeremy Pelczer, said "This has been a difficult time for the Company and its shareholders following the failure to achieve an exclusive license agreement with Procter & Gamble. However, with the changes we are making and with the new strategy in place, the Company is positioned to deliver revenue growth from a reduced cost base. Our focus is now firmly on our Public Health & Safety and Brewing, Food & Beverage Lines of Business and we will continue to explore licensing opportunities that we believe could generate returns for shareholders." 

Enquiries:

Pursuit Dynamics plc 01480 422 050

Jeremy Pelczer

Richard Webster

Cenkos Securities plc 020 7397 8900

Ian Soanes

Max Hartley

M:Communications 020 7920 2339

Nick Miles

Elly Williamson