RNS Number:6467S
Pursuit Dynamics PLC
01 December 2003


News Item

                       PURSUIT DYNAMICS PLC ('the Group')

                              PRELIMINARY RESULTS



Pursuit Dynamics plc, the AIM listed steam specialist, announces its preliminary
results for the year ended 30 September 2003.


Overview:

*     Pre-tax loss of #1,512,628 (2002: #1,593,189)

*     Cash at bank and in hand and short term investments of #1,117,277

*     Moved from pure research and development to a company that is marketing a
      range of tangible products

*     New business development team pursuing numerous opportunities for the
      commercialisation of the technology across a broad range of processing
      industries

*     Actively negotiating the structure and scope of trials within the food,
      dairy, nuclear, paper, heavy oil, chemical and defence industries

*     Development and evaluation trials have been undertaken within the water
      industry and discussions regarding a number of applications continuing

*     Additional trials with a leading confectionery manufacturer

*     Fully funded evaluation and marketing agreement signed with the Brewing
      Research Institute



Chief Executive John Heathcote said: "This has been another busy year for us as
we move into the next phase of our development and the commercialisation of our
technology.  We are now marketing our PDX Fluids Handling System across a broad
range of processing industries and are successfully developing strong
relationships with leading multi national companies.  To ensure we maximise our
opportunity, we have invested in strengthening our in-house technical and
marketing divisions and have appointed Durlacher as our new Nominated Adviser
and Broker.  With a substantial amount of potential contract agreements in the
pipeline, we are excited about the future and look forward to building a
business that rewards our investors."



Chairman's Statement



I am pleased to present the third Annual Report of Pursuit Dynamics plc for the
year ended 30 September 2003.



This has been another very exciting year for the Group with significant
developments made in its principal technology and its applications.



Financial review

During the year the Group recorded a loss after tax of #1,512,628 (2002:
#1,593,189), which included interest receivable of #23,774 (2002: #69,323) and a
research and development tax credit receivable of #111,308 (2002: #158,362), and
is stated after charging amortisation of the Intellectual Property of #557,060
(2002: #557,059) and depreciation of #46,353 (2002: #42,369). The reported
figures continue to be in line with budgeted expenditure for the development of
the Group's technology.



At current and budgeted cash burn rates, the directors are confident that the
Group's cash resources are sufficient to fund us through to the next stage of
our commercial development.



Operational review

The year has been dominated by the Group's transition from pure research and
development of our novel fluids handling and processing technology, to a company
that is marketing a range of tangible products.



A marketing programme was formally commenced on 1 September 2003, and the new
business development team, together with the Group's external marketing support,
are successfully pursuing numerous opportunities for the commercialisation of
the technology.



Development and evaluation trials have been undertaken within the water
industry, and are ongoing within the confectionery and soft drinks industries.
In addition, we are actively negotiating the structure and scope of trials
within the food, dairy, nuclear, paper, heavy oil, chemical and defence
industries. Furthermore, we have signed a fully funded evaluation and marketing
agreement with the Brewing Research Institute.



Following the successful completion of the waste water trials programme
undertaken in Canada during 2003, the Group is in continuing discussions
regarding a number of applications in the water industry.



The additional fully funded trials within the confectionery and soft drinks
applications with a leading confectionery manufacture highlight the Group's
policy of developing strong relationships within dominant companies in its
targeted sectors.



The Group continues to develop the PDX marine drive, with significant progress
as a direct result of the technical advances incorporated in the fluids handling
process technology.



Outlook

The completed evaluation programmes have confirmed the many advantages of our
platform technology, enabling us to continue to market the PDX Fluids Handling
System across a broad range of process industries. The Group is pursuing a
business model that includes licences, joint ventures and strategic
partnerships.



The past year has been an extremely busy period and I feel confident that this
will continue into the future. I would therefore like to express my gratitude to
the employees, directors and shareholders who have supported the Group so ably.



The next 12 months will be as intensive and exciting period as your Company
moves towards the full commercialisation of its technology, and we look forward
to reporting these developments to you.



Ronald Trenter

Chairman





Contacts:

John Heathcote              Pursuit Dynamics Plc              Tel: 01763 250592

Hugo de Salis               St Brides Media & Finance Ltd     Tel: 020 7242 4477

Matthew Robinson            Durlacher Ltd                     Tel: 020 7459 3600





Consolidated Profit and Loss Account

For the year ended 30 September 2003


                                                                                  Unaudited          Audited
                                                                                 Year ended       Year ended
                                                                               30 September     30 September
                                                                                       2003             2002
                                                                                          #                #

Administrative expenses                                                           (634,920)        (654,829)
Research and development costs                                                  (1,012,662)      (1,165,933)
Operating loss                                                                  (1,647,582)      (1,820,762)
Interest receivable                                                                  23,774           69,323
Interest payable and similar charges                                                  (128)            (112)
Loss on ordinary activities before taxation                                     (1,623,936)      (1,751,551)
Tax credit on loss on ordinary activities                                           111,308          158,362
Loss on ordinary activities after taxation                                      (1,512,628)      (1,593,189)
(being the loss for the year)
Loss per 1p share
- Basic and fully diluted                                                             3.90p            4.17p



There are no recognised gains and losses other than those reported above. No
separate statement of total recognised gains and losses has therefore been
presented.

All activity related to continuing operations.




Consolidated Balance Sheet

As at 30 September 2003


                                                     Unaudited      Unaudited        Audited        Audited
                                                         Group        Company          Group        Company
                                                          2003           2003           2002           2002
                                                             #              #              #              #
Fixed assets

Intangible fixed assets                              4,104,500              -      4,661,560              -
Tangible fixed assets                                  119,854              -        151,085              -
Investments                                                  -        270,040              -        270,040
                                                     4,224,354        270,040      4,812,645        270,040

Current assets
Debtors: amounts falling due                                 -      5,353,481              -      4,610,499
after more than one year
Debtors: amounts falling due                           179,263              -        219,558              -
within one year
Short term investments                               1,056,718              -      1,180,612              -
Cash at bank and in hand                                60,559              -         54,412              -
                                                     1,296,540      5,353,481      1,454,582      4,610,499

Creditors: amounts falling due                       (111,315)              -      (125,002)              -
within one year
Net current assets                                   1,185,225      5,353,481      1,329,580      4,610,499
Net assets                                           5,409,579      5,623,521      6,142,225      4,880,539

Capital and reserves
Called up share capital                                405,971        405,971        381,581        381,581
Share premium account                                5,491,636      5,491,636      4,736,044      4,736,044
Merger reserve                                       4,061,185              -      4,061,185              -
Profit and loss account                            (4,549,213)      (274,086)    (3,036,585)      (237,086)
Equity shareholders' funds                           5,409,579      5,623,521      6,142,225      4,880,539




Consolidated Cash Flow Statement
For the year ended 30 September 2003


                                                                                  Unaudited         Audited
                                                                                 Year ended      Year ended
                                                                               30 September    30 September
                                                                                       2003            2002
                                                                                          #               #
Net cash outflow from operating activities                                      (1,049,494)     (1,386,700)
Returns on investment and servicing of finance
Interest received                                                                    23,774          69,323
Interest paid                                                                         (128)           (112)
Net cash inflow from returns on investment and servicing                             23,646          69,211
of finance
Taxation
United Kingdom Corporation tax - research and development                           112,366          42,362
tax credit received
Net cash inflow from taxation                                                       112,366          42,362
Capital expenditure and financial investment
Payments to acquire tangible fixed assets                                          (29,459)       (109,735)
Receipts from sale of tangible fixed assets                                          14,337               -
Receipts from sale of short term investments                                              -          10,787
Net cash outflow for capital expenditure                                           (15,122)        (98,948)
and financial investment
Net cash outflow before management of liquid resources                            (928,604)     (1,374,075)
and financing
Management of liquid resources
Decrease in short term deposits with banks                                          154,769       1,252,321
Net cash inflow from management of liquid resources                                 154,769       1,252,321
Financing
Proceeds of Ordinary share issue                                                    553,293               -
Issuance costs of shares                                                           (38,841)               -
Proceeds of options exercised                                                       265,530               -
Net cash inflow from financing                                                      779,982               -
Increase /(decrease) in cash in the year                                              6,147       (121,754)





Copies of report



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




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END

FR FEIFMASDSEFF