Date: Thursday 24 May 2012
Pursuit Dynamics, a fluid technology firm, gave its investors a much needed cheer with the announcement of its half-year results, which saw revenue more than quadruple and losses remain stable following the execution of a cost reduction programme.
Earlier this week, the company saw its share price dive 77% after Procter and Gamble (P&G) ended an agreement to use the former's technology, prompting the company to warn that revenue and profit for the full year will be materially below earlier expectations.
During the six months ended March 31st, revenues increased year-on-year from £0.1m to £0.5m while operating expenses increased from £5.1m to £7.5m.
Loss before tax remained steady at £7.78m compared to £7.2m the corresponding period. The company was keen to emphasise that it has reduced its costs by 25% from 2010-11 levels. Basic losses per share were the same year-on-year at 10.21p.
Interim Chief Executive Officer, Jeremy Pelczer, said: "As noted in the P&G update on May 21st, there is no doubt that the company is disappointed with the decision by P&G. The challenges and opportunities we face will be addressed within the current strategic review, the findings of which will determine the next stage in the company's development.
"Confidence remains strong in the technology and within the strategic review we are considering all options. In light of the P&G decision we need to make significant and carefully-costed decisions in targeting the right applications, partners and customers to produce meaningful revenue growth."
The firm has decided to speed up a strategic review already underway to help it deal with P&G's decision.
Cash and equivalents at the end of the period leapt from £9.1m from a debt of £4.2m the same date the year previous.
The share price rose 7.5% to 10.75p by 12:47.
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