Shares in fluid technology solutions developer Pursuit Dynamics (PDX) plummeted more than 55% after the firm reported soaring pre-tax losses for the year ended 30 September and Chief Executive Officer Roel Pieper quit.
To help combat its struggles, the group is planning to raise £8.8m after expenses through a rights issue.
During the year, rising operating costs, share option compensation charges, and non-cash operating expenses all rose, leading to a loss before taxation of £15.3m, compared to £9m the previous year.
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Revenue had risen from £0.1m to £0.5m, but did little to offset the soaring outgoings which the firm said were due to the programme of investment that continued throughout the year.
Losses per share for the year were 21.3p compared to 12.89p the previous year. Cash at the end of the period also fell from £9.97m to £7.3m.
Chairman Andy Quinn said: "The company has made progress during the year and we've developed product applications that have found traction with major industrial customers across multiple lines of business, although the revenues generated from these customers have been slower to emerge than we had expected.
"This is a timing issue and the delay means that income which we expected in the 2010/11 fiscal year should instead be recognised in the coming year.
"We enter 2012 with improving contract visibility and confidence that the revenue profile of the business will develop as expected."
He added: "The planned fundraising we have announced today should assure shareholders, customers, and suppliers that our business is well-equipped financially to take full advantage of the opportunities we are generating."
Despite the poor results, the firm has approved a revenue forecast of at least £22m for fiscal year 2011/12 and expects the business to be cash flow and earnings before interest, taxes, depreciation, and amortization positive before the end of the fiscal year.
The firm also announced that its Chief Executive Officer (CEO) Roel Pieper has resigned with immediate effect for personal reasons and he will return to his venture capital activities.
Non-executive director Jeremy Pelczer, who joined the board in June 2011, has assumed the role of Interim CEO and will serve until a permanent CEO has been identified.
The share price fell 55.23% to 91p by 09:22.
NR
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