Pursuit Dynamics, a fluid technology firm, disappointed investors on Thursday after admitting that it has failed to convert recent opportunities in multiple lines of business into exclusive licences.
This means that current year revenues are expected to be around £1.0m, although strong sales growth is expected in the next financial year, driven by established products and those now coming into production.
The firm also announced plans to reduce the head-count to 40 from the current level of 61, a 50% reduction in head-count since October 2011.
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As part of the company's cost-saving actions, its Chief Financial Officer, Richard Webster, will be stepping down from the board on September 30th 2012. Richard's responsibilities will be assumed by the current Head of Finance, Alistair Miller, helping to reduce the cost of running the business to around £450,000 per month.
The group said that in the near term it will focus on two of its principal lines of business, 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.
In addition, the company has started to identify suitable investors, partners, or other means of preserving future value from its intellectual property, in its Waste Treatment and US BioEnergy lines of business.
The firm was keen to emphasise that a number of strategies are available for it to fund its growth, including industrial licences, joint ventures and partnerships and said it continues to explore a range of options. The cash balance as at June 22nd was £6.1m.
Interim Chief Executive Officer, 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."
The share price had fallen 8.57% to 12p by 09:58.
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