Pursuit Dynamics plc Annual Report and Accounts 2011 
Pursuit Dynamics plc
Annual Report and Accounts 2011 
Adding v Alue thRough 
Delivering efficiencies  Overview
01  highlights
02  Chairman’s letter
04  interim Chief executive’s Q&A
 Adding value through…
07  An experienced team
08  vital technologies
10  l everaging our iP assets
11  A flexible business model
12  o ngoing business development
13  Clear lines of business
 Operating and financial review
14  Bioenergy
16  Brewing, food & beverage
18  Public health & safety
20  Waste treatment
21  industrial licensing
22  Financial overview
23  Financial review
25  Principal risks and uncertainties
 governance
26  Chairman’s introduction to governance
27  Board of directors
28  Corporate governance
30  directors’ report
32  Report of the Remuneration Committee 
35  Statement of directors’ responsibilities
 Accounts
36  independent auditors’ report (g roup)
37  Consolidated income statement
37  Consolidated statement of comprehensive income
38  Consolidated balance sheet
39  Consolidated cash flow statement 
40  Consolidated statement of changes in equity
41  n otes to the g roup financial statements
63  independent auditors’ report (Parent Company)
64  Company balance sheet
65  notes to the Company financial statements
69  notice of Annual g eneral Meeting
73  Secretary and advisors Pursuit dynamics plc (“Pd X”) assists companies 
in a wide range of markets to make their 
industrial processes more efficient, by optimising 
the processing cycles and reducing the use of 
resources and energy . in a number of other markets 
PdX™ provides solutions to create a safer and 
healthier environment, for example disinfection, 
decontamination and fire suppression.
PdX acts as a business creation, launch and 
management platform for a number of focussed 
l ines of Business (“loBs”). these aim to exploit 
the commercial potential of the Company’s growing 
family of patents, based on its two proprietary 
technologies, in attractive and dynamic global 
markets including food processing and brewing, 
renewable energy and public health.
Operational highlights
•	 Bioenergy lo B: At the end of September 2011, installed 
ethanol base at 314 million u S gallons per annum (“mg PA ”)  
at 5 plants
•	 Brewing, Food and Beverage lo B: introduction of 2 new 
products in brewing ( mashing and cereal cooking) and 
establishment of 6 operating reference sites. Food product 
sales continue
•	 Waste treatment lo B: trials with t hames Water  
are ongoing, 2 product opportunities identified
•	 Public h ealth and Safety lo B: Atomiser disinfection  
trials successful, prototype of First Responder System 
product developed
•	 industrial l icensing lo B: Progress with Procter and g amble 
(“P&g ”) under the Joint development Agreement
•	 Roel Pieper has resigned for personal reasons and will  
return to his venture capital activities and Jeremy Pelczer ,  
a n on-executive director since June 2011 and former chair  
of the Audit Committee, has assumed the post of interim 
Ceo . Jeremy is a former Ceo of RW e t hames Water plc
Financial highlights
•	 Revenues generated by 4 lo Bs (2009–10: 1 lo B)
•	 Revenue in the period of £490,000 (2009–10: £128,000)
•	 l oss before tax of £15.3 million (2009–10: £8.7 million )
•	 Cash at 30 September 2011 of £7 .3 million
•	 Post year -end the Company will be raising £1.8 million  
through a placing of shares and approximately £8.78 million 
( net of expenses ) by way of an underwritten rights issue.
For more information, go to www.pdx.biz
1  Pursuit Dynamics plc 
Annual Report and Accounts 2011
operating and financial review governance Accounts Adding value through… Overview ChAiRMAn’S letteR
investing in Our future
t he goal of Pursuit Dynamics plc (“PDX”) 
is to assist companies in a wide range 
of industries in making their industrial 
processes more efficient, by optimising  
the processing cycles and reducing 
the use of resources and energy. in a 
number of other markets PDX provides 
solutions to create a safer and healthier 
environment, for example in disinfection, 
decontamination and fire suppression.
PdX acts as a business creation, launch 
and management platform for a number of 
focussed l ines of Business (“lo Bs”). these 
aim to exploit the commercial potential of the 
Company’s growing family of patents, based 
on its two proprietary technologies, targeting 
global markets including food processing and 
brewing, renewable energy and public health. 
t he challenge remains to minimise the time 
lag between initial opportunity assessment 
and achievement of sustainable revenue 
flow. PdX remains in a phase of its business 
evolution where it now needs to prove its 
commercial applications at industrial scale 
within the next twelve months. 
in this context the year under review 
was an extremely important one in the 
development of the Company. i believe we 
will look back on it as the period when Pursuit 
dynamics plc started to come of age. t he 
commercialisation of the Company’s loBs 
continued, and we ended the year with active 
customers for several of our applications,  
first real revenue streams coming to life and  
a number of valuable potential opportunities 
on the verge of realisation.
Andy Quinn 
Chairman
2  Pursuit Dynamics plc 
Annual Report and Accounts 2011 to get to this point, investment has 
continued throughout the past financial year 
in both our people and our products, aided 
by the fundraising effort in April 2011. i would 
also like to acknowledge, however, that 
despite the progress made during the year, 
the rate at which binding contracts have 
been signed has been slower than the Board 
had expected and revenues generated from 
those contracts have taken longer to emerge 
than anticipated. t hus the level of revenues 
that we believed, until very recently, we 
would be able to report for the second half 
of the year, have not been forthcoming. 
t he delayed delivery of revenue has been 
frustrating. h owever, in Bioenergy we have 
identified the issues in benchmarking our 
customers’ plant performance and have 
continued our engagements with our early 
adopters to validate the ethanol Reactor 
System (“eRS”) benefits. We’re installing a 
more precise monitoring system to better 
measure the impacts of the eRS. t his 
combined with a programme to optimise 
plant settings to exploit the eRS technology 
is expected to enable faster revenue 
generation in the future. 
in addition, within our industrial l icensing 
lo B, we have also experienced delays in 
concluding some important deals that had 
been expected in this financial year. it is 
worth noting that these opportunities that 
were not closed in the 2010–11 financial year 
still have on-going trials with results that 
remain encouraging in our drive towards 
commercial agreements. t hese timing 
delays mean that some of the income that 
the Board had expected to generate in the 
2011 financial year is instead expected to be 
recognised in the coming year and for this 
reason the Company’s cash resources are 
lower than the Board had forecast.
t he Board therefore announced, on 
15 december 2011, its intention to raise 
additional funds to provide the Company 
with the financial resources required to 
become profitable and cash generative. in 
order to allow all Shareholders to participate 
in the fundraising the Board has, following 
consultation with the Company’s major 
Shareholders, chosen to raise the required 
funds by way of an underwritten rights 
issue to raise approximately £9.38 million 
(£8.78 million net of expenses). t he rights 
issue will be made on the basis of one 
new PdX share for every eight existing 
PdX shares at a price of 100 pence per 
new PdX share, representing a discount 
of 50.8% to the Closing Price of 203.25 
pence on 14 december 2011, being the latest 
practicable date prior to the publication of 
the announcement of the fundraising.
in addition the Company has raised a further 
£1.8 million (net of expenses ) through the 
placing of 1,800,000 n ew PdX Shares at 100 
pence per share. t he fundraising will raise 
a total of approximately £11.2 million (£10.6 
million net of expenses ).
i am acutely aware that the patience 
of our Shareholders has been tested. 
t herefore i would particularly like to take this 
opportunity to thank our Shareholders for 
their continued support and understanding 
as our management and operational teams 
now start to deliver on the promise that the 
Company’s proprietary technologies show in 
its target markets across the world. i would 
also like to thank our employees for their 
continued support and dedication to the 
Company’s operations, in what has been  
a very challenging environment.
i welcome Professor Bernard Bulkin and 
Jeremy Pelczer to the Board and i am sure 
they will make an important contribution to 
our future success during the next stage  
of the Company’s development. i extend  
my sincere thanks and best wishes to 
Michael Ryan and Stuart evans, who left  
the Board earlier this year. Post year end, 
our Chief executive Roel Pieper resigned for 
personal reasons. i am pleased that Jeremy 
Pelczer, who joined the Board in June 2011, 
has agreed to assume the role of interim 
Ceo and will serve until the end of the 
current financial year whilst a permanent 
Ceo is recruited. Jeremy is an experienced 
executive who has held senior positions 
in engineering and industrial businesses 
including serving as Ceo of RW e t hames 
Water and American Water. h e is a non-
executive director of South Staffordshire 
Water and Chairman of WaterAid. Since 
joining the Board, until his appointment as 
interim Ceo , Jeremy has served as Chair  
of the Audit Committee and as a member  
of the Remuneration Committee. 
i also take this opportunity to inform 
Shareholders that i plan to resign as 
Chairman of the Company once a new 
permanent Ceo has been appointed and  
a replacement for me as Chairman has  
been identified.
l ooking ahead, we are highly aware of 
the execution skills needed to realise 
our commercial ambitions. We intend to 
concentrate our efforts on making our 
existing contracts profitable and in making 
the progress needed to fulfill PdX’s true 
potential in 2011–12 and during the years  
that follow. 
Andy Quinn
Chairman
3  Pursuit Dynamics plc 
Annual Report and Accounts 2011
operating and financial review governance Accounts Adding value through… Overview inteRiM ChieF eXeCutive’S Q&A
MOving t OWArDs A 
sust AinABle Business
As it cOntinues t O cOMMerciAlise tHe APPlic AtiOns Of its 
PrOPriet ArY tecHnOl Ogies , interiM ceO JereMY Pelc Zer Outlines 
His tHOugHts On sOMe Of tHe cOMPAnY’s cHAllenges AnD HOW  
tHe cOMPAnY Will cOncentrA te On Delivering KeY PrODucts  
t O tHe Different MArKets in tHe cOMing YeAr. 
What have been the biggest challenges 
faced during the year?
t he single greatest challenge has been 
the commercialisation of our eRS. We 
had underestimated the complexity of 
properly measuring the performance 
of our customers’ plants. t he nature of 
this complexity includes the day-to-day 
variation in plant operations and difficulties 
of measuring the improvement made 
by the eRS. to address this, we have a 
measurement tool which we are validating 
in our early adopter plants and we’re 
implementing a programme that will enable  
us to clearly demonstrate the operational  
and financial benefit that the eRS brings  
to a typical bioethanol plant. 
We have launched four businesses during 
the last two years; the challenge for the 
Company during the year has been to ensure 
adequate focus on its key markets to avoid 
resources being spread too thinly, whilst at 
the same time creating a new organisation 
structured around the selected lo Bs. 
A key lesson learnt in the past year has been 
to be more realistic, at this stage of the 
Company’s evolution, regarding the time lag 
between trials commencing and completion 
of commercial contract negotiations, based 
on the level of assurance that clients require 
for any new technology. Whilst the exciting 
aspect of PdX technology remains its game-
changing capability on a client’s cost base, it 
is also a fact that those same clients will want 
to test robustly this new technology.
Jeremy Pelczer 
Interim Chief Executive Officer
A year of progress
4  Pursuit Dynamics plc 
Annual Report and Accounts 2011 Notwithstanding those challenges  
what progress has the Company  
made in the last year?
At the heart of our business lies the 
Company’s continued commitment to 
providing greater efficiencies and thus, cost 
savings and/or enhanced revenues to our 
customers and partners and this has been 
the year in which we’ve made progress in 
building the foundations for future success.
For example, our Bioenergy business is 
now trading actively, having made its first 
installations of our eRS technology in a small 
number of u S ethanol-production plants 
during the year. At the end of September, 
2011, our installed ethanol base was 314 
million u S gallons per annum (“mg PA”) at 
five plants. in our Public h ealth & Safety 
lo B we have developed two disinfection 
products which we hope to launch 
commercially during 2012 and through 
our Joint venture with n ational n uclear 
l aboratories l td we have secured our first 
revenues and envisage the development 
of a multi-product portfolio of nuclear 
decontamination solutions over time. the 
Brewing, Food & Beverage lo B developed, 
trialled and sold new products during the 
year and post year end identified two new 
products for the brewing industry. it will seek 
to roll those out to our existing customer 
base and beyond providing an integrated, 
energy saving front end brew house solution. 
in addition, we are making inroads into new 
markets including waste treatment in the 
agricultural and wastewater sectors, which 
it is hoped will improve biogas production, 
simplify water purification and reduce the 
quantities of waste sent to landfill. d uring 
the year we launched an industrial l icensing 
lo B and are running extensive trials in the 
fast-moving consumer goods (“FMCg ”) 
sector, where we are focussed on improving 
internal production processes. 
g etting to this point has required on-going 
investment in people and other resources, 
but it has brought us to a position where we 
are now poised to deliver, with a portfolio  
of parallel revenue streams ready to provide 
a growing return on this investment. 
o ver the past year, we have progressed 
from establishing loBs to actually operating 
with management to lead them and 
appropriate resources to support their 
activities. Plans have been developed and 
approved and we have products either in 
the field or primed to enter it, including new 
mashing, cereal cooking and disinfection 
solutions for the brewing industry and 
the ‘first responder’ decontamination 
backpack in our Public h ealth & Safety 
loB which were all developed beyond 
concept during 2010–11 to the point of 
market-ready products. We have customers 
or Jv partners in place in industries and 
sectors including brewing, bioenergy, food 
processing and nuclear.
How do you address the Health & 
Safety issues the Company faces, 
particularly given your dependence 
upon high pressure steam and other 
gases in your Reactor and Atomiser 
platforms and the range of hazardous 
substances and pathogens your 
product solutions are specifically 
designed to deal with? 
h ealth & Safety is absolutely central to 
the management of our business – all our 
employees and their families are entitled 
to expect that they will suffer no injury at 
work whether performing their duties on 
Company premises or at those of any of our  
customers. Similarly, all our customers and 
partners are entitled to expect that we will 
fully comply with the highest standards of 
safety, whatever industry they operate in.  
t his applies whether it be food and beverage 
processing, remediating waste products or 
decontaminating or disinfecting even the 
most hazardous materials with which we 
are presented. Because we work in so many 
industries and sectors, rather than apply 
a one-size-fits-all blanket policy to all our 
activities, we select those that best match 
the particular needs of each task, including 
detailed risk analysis, consulting with industry 
experts and carrying our failure-mode 
assessments. Just as importantly, we recruit 
people from the industries in which we work 
who are familiar with the relevant risk profile 
and know the right questions to ask. So, 
dependent on the task or sector, we have 
defined sets of documentation, processes 
and procedures and protective clothing. 
What are the key strategic goals for  
the business?
From a scientific and engineering 
perspective, our strategy is driven by a desire 
to commercialise applications based on our 
core Reactor and Atomiser technologies that 
will allow our customers to reduce the stress 
on resources affecting their organisations 
and the wider environment. this should help 
save costs and improve output and thus 
profitability for our customers at the same 
time as making them more energy efficient. 
in order to meet this ambition for our clients, 
our strategic objective is to strike the right 
balance between protecting margins and 
exploiting each market opportunity as 
effectively as possible. Whilst doing so  
we seek to develop a reliable and systematic 
approach to delivering solutions through  
the various stages of business development; 
from concept to product development, 
commercial implementation, and through  
to value creation and to do so as quickly  
as possible while managing associated risks. 
o ur current business/pricing model seeks 
to provide the framework for meeting our 
strategic objectives. We operate in a number 
of marketplaces, each with different drivers 
and financial priorities. in our view, there  
is no single pricing solution that suits all of 
our customers. For this reason we have 
developed three different financial models, 
which we will apply depending on the needs 
of our customers and our own views as 
to which are most appropriate in terms of 
making sales and driving our financial returns.
January 2011
Results at PdX’s installation at Pacific ethanol’s 
Columbia plant near Boardman o regon, u SA 
continue to confirm the stability, quality and 
viability of the ethanol Reactor System (“eRS”) 
with no errors or stoppages and with all sub-
systems working to design specification. 
February 2011
PdX announces that its Joint venture company, 
nd X Solutions l imited has now been established 
and is fully operational. 
March 2011
Formal terms agreed with Pacific ethanol 
Columbia ll C for the commercial operation  
of the eRS.
5  Pursuit Dynamics plc 
Annual Report and Accounts 2011
operating and financial review governance Accounts Adding value through… Overview inteRiM ChieF eXeCutive’S Q&A Continued
•	 u nder our Benefit Share model, which we 
are already applying within our Bioenergy 
lo B, we will take a share of the financial 
benefits that the use of our technology 
delivers for the customer, in return for 
providing the eRS at reduced cost. 
Clearly, this necessitates the very precise 
measurement of those benefits. 
•	 u nder our l icensing model, we will charge 
customers a recurring monthly or annual 
licence fee for allowing our technology  
to be integrated into their systems at their 
cost. t he level of licence fee will reflect 
the agreed overall benefit of reducing 
process time and costs of production 
and increasing the quality of output for 
each customer product line in which our 
technology is to be used. 
•	 Finally, we can create products or solutions 
that we can sell outright to a customer. 
t his Capital Sale model is the approach  
we are currently taking with our brewing 
and food product offering.
during 2011, we refined our business 
strategy to focus increasingly on industrial 
l icensing as well as accessing new market 
areas including the waste treatment and 
nuclear sectors. We believe that this will 
allow us to build a substantial, long-term 
recurring revenue base from the existing iP 
of PdX and the considerable scientific and 
engineering knowledge and experience base 
that already exists within the Company.
What are the key achievements  
that you hope to deliver over the  
next 12 months?
i believe that it will be very important for PdX 
and its Shareholders, that we finally start to 
see some material returns on the investment 
of capital (both financial and intellectual) 
and effort that has been made over recent 
years. We anticipate securing agreements in 
the area of industrial l icensing, albeit some 
of these had been expected in 2010–11. We 
have recently identified two new products 
for the brewing industry and will seek to roll 
these out to our existing customer base and 
beyond. o ur bioethanol plant installation 
programme will be accelerated when we 
have agreed with our existing installed 
customer base that our baselining and 
measurement procedures show an agreed, 
measurable financial benefit and we start 
to receive revenue from those customers. 
in our Public h ealth & Safety lo B, proof 
of concept work is complete on new 
products which we expect to launch during 
the year. We are targeting the agreement 
of approved procedures for projects 
involving four different aspects of nuclear 
de-commissioning. We anticipate seeking 
regulatory approvals for our two potential 
new products in our Waste treatment 
business and will continue trials on a third.
i look forward to reporting on progress  
during the year.
Jeremy Pelczer
interim Chief executive o fficer
April 2011
Contract to supply a PdX Reactor system to a 
major european food manufacturer announced. in 
addition development and distribution agreements 
signed with Kärcher Futuretech g mbh .
May 2011
n ew agreement with Front Range energy ll C to 
install the eRS. t his follows announcements made 
in the previous 12 months with Pacific ethanol inc., 
Mid America Bio energy & Commodities, ll C, 
Marquis energy, ll C and Red trail energy, ll C.
June 2011
Agreement signed with Radeberger g ruppe Ag 
to install the PdX Wort h eater system into its 
brewery in Radeberger g ermany.
Agreement signed with Advanced Bio energy, 
ll C to install the eRS at its three plants in South 
dakota and n ebraska.
What are the key strategic goals for  
the business? continued
6  Pursuit Dynamics plc 
Annual Report and Accounts 2011 July 2011
PdX enters into a collaborative agreement  
with isle u tilities l imited for the commercial 
evaluation of PdX technology. t he installation  
will be at t hames Water’s Basingstoke plant.
PdX also announces an intention to enter a 
50:50 Joint venture with Biomimetics h ealth 
industries (u K) l imited to commercially exploit 
the patented intellectual property of both 
organisations to create best-in-class disinfection 
and decontamination solutions using the PdX 
Atomiser technology.
September 2011
PdX announces an agreement with Marquis 
energy ll C to install the eRS at its plant in 
Wisconsin, u SA.
PdX also announces a contract to supply a PdX 
fully-integrated food system to one of europe’s 
leading food producers and a returning customer 
to PdX.
We are pleased to present our executive team, which has many 
years of experience in the industries they operate in. each one is 
clearly focussed to ensure PdX is constantly evolving to ensure  
the longevity and growth of PdX. 
Adding v Alue thRough 
An eXPerienceD teAM
Tina Jennings
vice President –  
g lobal h R
Heinz-Jürgen Kroner
g eneral Manager 
of Brewing, Food & 
Beverage lo B
Jens Thorup
Senior vice President – 
Strategic Projects
John King
Senior vice President 
and g eneral Manager, 
Bioenergy loB
Jeremy Pelczer
interim Chief executive 
o fficer 
Hagen Gehringer
Senior vice President 
and g eneral Manager 
of Public h ealth & 
Safety lo B
Jonathan Bailey
Senior vice President – 
Business development
Richard Webster
Chief Financial o fficer
7  Pursuit Dynamics plc 
Annual Report and Accounts 2011
operating and financial review governance Accounts Adding value through… overview PDX Devel OPs AnD Brings t O MArKet tecHnOl Ogic Al sOlutiOns t O 
sOMe Of tHe Biggest cOncerns Of t ODAY , incluDing tHe neeD t O 
cOnserve gl OBAl energ Y resOurces AnD t O HelP OrgAnis AtiOns 
BecOMe MOre efficient AnD tHus MOre PrOfit ABle. 
Adding v Alue thRough 
vit Al tecHnOl Ogies
PDX REACTOR
What is it?
t he PdX Reactor technology family is based 
around what independent research and partner 
assessments constantly show to be the best 
pre-treatment and heating system for fluids, 
slurries, emulsions and more, in markets from food 
processing and brewing to wastewater treatment, 
bioenergy and numerous others.
What does it do?
in all these applications, the PdX Reactor – 
which is easily integrated into existing industrial 
production processes – reduces energy costs and 
processing times, transforms materials handling 
and saves on ingredients. it can also help create 
entirely new products.
How does it work?
t he PdX Reactor uses very high-velocity steam 
to generate considerable turbulence in the 
material being processed, which in turn creates 
a controllable “shockwave” within it. t his delivers 
a number of positive processing effects with a 
range of beneficial applications across different 
industries – for example, in the food industry it 
can enable a reduced use of flavour enhancers, 
leading to healthier recipes. it is highly configurable 
to the needs of different industries and operational 
environments, and can be integrated into the 
existing process plant.
8  Pursuit Dynamics plc 
Annual Report and Accounts 2011 t he core PdX Reactor and PdX Atomiser technologies owned by 
PdX are covered by more than 200 patents and patent applications, 
across 40 different commercial applications, each with the potential 
to bring to companies, markets and populations across the globe the 
benefits of greater efficiency and better safety.
Flexible technologies
t he iP owned by the Company covers the PdX Reactor and 
Atomiser technology which is applicable to a diverse range  
of markets.
PDX ATOMISER
What is it?
PdX Atomisation technology is at the heart of 
the most advanced family of fine droplet mist 
generators. By creating droplets smaller than five 
microns in diameter, a misting effect is produced 
that enables water and decontaminants to behave 
like a gas. 
What does it do?
t he mist produced by the PdX Atomiser allows 
liquid decontaminant and disinfectant chemistries 
to behave like a gas and reach airborne hazards 
and hard to reach areas within a room. t he mist 
can be easily directed and controlled, making it 
ideal for fire suppression, decontamination and 
disinfection applications in many environments. 
o ur work with strategic partners is revolutionising 
all three areas.
How does it work?
l ike the PdX Reactor, the PdX Atomiser relies on 
the high-velocity injection of gas into a liquid. in the 
Atomiser, this creates a very great number of very 
small droplets that rapidly fill any space to provide 
a fine and consistent coating of all surfaces.
9  Pursuit Dynamics plc 
Annual Report and Accounts 2011
operating and financial review governance Accounts Adding value through… overview t he Company’s focus during the 2011 financial year was on 
identifying potential applications across a range of markets for  
the technologies whose iP we possess. We have also provided  
the proofs of concept required by potential partners or customers 
and in a number of cases have moved on to developing stand alone 
products and integrated solutions for commercial exploitation.
Reduced time to market
As we develop more products and solutions, this means that our  
time to market will reduce, thanks to the growing potential for 
synergies between products and product families, even across 
different industries and market sectors. in turn, we expect the 
knowledge transfer this enables to accelerate commercialisation  
and so generate shareholder value more rapidly than during the 
launch stages of the Company.
Adding v Alue thRough 
leverA ging Our iP A ssets
2011 2012 2013 2014
Bioenergy early Revenue early Revenue established and 
Profitable
established and 
Profitable
Brewing, Food & Beverage early Revenue established and 
Profitable
established and 
Profitable
established and 
Profitable
Public Health & Safety early Revenue early Revenue established and 
Profitable
established and 
Profitable
Waste Treatment in t rials in t rials early Revenue established and 
Profitable
Industrial Licensing early Revenue established and 
Profitable
established and 
Profitable
established and 
Profitable
10  Pursuit Dynamics plc 
Annual Report and Accounts 2011 PDX business model
Two core technologies PDX Reactor PDX Atomiser
200+ patents Process patents Core patents Application patents
Five lines of business Bioenergy Brewing, 
Food & 
Beverage
Public Health 
& Safety
Waste 
Treatment
Industrial 
Licensing
Revenue 
streams
Major Benefit Share from using 
PDX technologies
Licence to use PDX 
technologies
Capital equipment sales
Minor Consulting Support Spares
t he diagram below links the two core technologies at the heart of 
PdX through the 200 patents that protect our iP into the five lo Bs 
that reflect our commercial focus and the three major streams of 
revenue that drive the financial performance.
Adding v Alue thRough 
A fleXiBle Business MODel
11  Pursuit Dynamics plc 
Annual Report and Accounts 2011
operating and financial review governance Accounts Adding value through… overview From concept to LOB
it is essential to the PDX vision that we have a constant pipeline 
of new concepts, prospects and opportunities that are under 
continual assessment and development. t his is how we ensure 
that we have a dynamic flow of new ideas under development, 
from initial concept through to proof-of-principle and beyond.
For this reason, our Business development activities are an  
important part of the Company. Strategically placed alongside 
our lo B structure to ensure that its ability to innovate is not 
constrained by the day-to-day operational demands of our vertical 
lines of business, Business development considers concepts and 
opportunities that may emerge anywhere in the world, managing 
their commercial development, determining the right route to market 
and identifying strategic partners. So it is a creative centre, providing 
the link between science and business, which ultimately drives every 
application of our technologies and therefore everything that we do 
within the Company.
it is critical that we focus on the careful use of the Company’s resources. 
We have the potential to develop a number of new lo Bs in the future, 
subject to significant resources being available to us at the time. t hese 
would be drawn from our portfolio of projects in areas from algae 
breaking to anaerobic digestion, cosmetics, pharmaceuticals, paper  
and packaging, paints and pigments, flavour enhancement and crude 
oil and mining. trials have already been conducted in several of these 
markets to provide our development roadmap for the years ahead.
Adding v Alue thRough 
OngOing Business Devel OPMent
MANY NEW IDEAS
NEW LOB
18 month timeline
Early ideas
Innovations
Feasibility testing
Critical review of resource allocation
Prioritisation
Commercial validation
Commercial negotiations
Large number of initial ideas 
reduces to a small number 
of focussed businesses.
0–1 Month
1–3 Months
3–15 Months
15–18 Months
12  Pursuit Dynamics plc 
Annual Report and Accounts 2011 Below is a brief overview of our lo Bs. turn to pages 14 to 21  
for more detail.
BIOENERGY
PAge 14
t his lo B is dedicated to helping companies producing biofuels 
to achieve greater efficiencies, providing economically viable 
commercial alternatives to environmentally harmful and rapidly 
depleting fossil fuels.
BREWING, FOOD & BEVERAGE
PAge 16
o ur technologies are already proven in these key industry sectors 
to drive significant reductions in production costs alongside 
enhanced productivity with no impact on product quality. 
PUBLIC HEALTH & SAFETY
PAge 18
in this loB we focus on the development and commercialisation 
of decontamination, disinfection and decommissioning solutions 
for markets which include the military, civil defence, commercial 
disinfection, healthcare and nuclear decommissioning industries.
WASTE TREATMENT
PAge 20
We have changed the focus of our former water lo B to target 
the waste treatment sector. o ur solution is based on our Reactor 
technology which is in the process of being tested to confirm its 
value in a number of applications.
INDUSTRIAL LICENSING 
PAge 21
o ur industrial l icensing loB implements our licensing-driven 
business model, in which we enter long-term joint development 
agreements with some of the world’s largest industrial 
manufacturing companies to exploit the iP owned by PdX  
in their processes.
Adding v Alue thRough
cleAr lines Of Business
n ote: in our 2009–10 Annual Report, we included n ew ventures as a lo B. 
We have now reclassified this as a Business d evelopment function that 
passes those ventures identified as having tangible market potential on  
to our lo Bs to take to market.
13  Pursuit Dynamics plc 
Annual Report and Accounts 2011
operating and financial review governance Accounts Adding value through… overview BiOenerg Y
tHis l OB is DeDic AteD t O HelPing cOMPAnies PrODucing BiOfuels 
t O AcHieve greA ter efficiencies AnD increA seD tHrOugHPut . 
tHese cOMPAnies Are striving t O PrO viDe ecOnOMic All Y viABle 
cOMMerciAl Al ternA tives t O envirOnMent All Y HArMful AnD 
rAPiDl Y DePleting fOssil fuels.
We HAve Devel OPeD sOlutiOns BAseD On Our reA ct Or tecHnOl Og Y 
WitH APPlic AtiOns in tHe eXisting MArKet fOr generA tiOn 1 
(etHAnOl-frOM-cOrn st ArcH fuel). We Are eXPl Oring tHe 
POtentiAl fOr APPlic AtiOns in tHe generA tiOn 2 (cellul Osic 
BiOfuels ) AnD generA tiOn 3 (AlgAl BiOfuels ) MArKets .
John King
Senior Vice President and General Manager, Bioenergy LOB
John King joined PdX in november 2011 as the new Senior v ice President 
Bioenergy loB, coming from g reat Plains o il exploration ll C, where he  
was Coo.
John brings twenty-four years of relevant experience, including seventeen 
years of engineering and operations leadership at Procter & g amble followed  
by seven years of commercial leadership in various Biofuels businesses.
14  Pursuit Dynamics plc 
Annual Report and Accounts 2011 During the year
today, our Bioenergy focus is on successfully 
commercialising our ethanol Reactor System 
(“eRS”) technology in the large g eneration 1 
corn ethanol production market. during the 
year, we installed our technology in 5 ethanol 
plants totalling 314 million gallons per annum 
(“mg PA”). t hese plants are based on the 
most prevalent engineering designs in the 
industry and range in capacity from 40 to 
140 mg PA. t he plants were chosen as part 
of our strategy to prove the benefits of the 
operational flexibility of the eRS through 
demonstrated successful operations at a 
portfolio of reference sites. We also signed 
l etters of intent with a further 10 ethanol 
plants, which when active will give us a 
combined total of 15 plants producing over 
1 billion gallons each year, representing 
approximately 7% of the current total u S 
corn ethanol production capacity of 14 billion 
gallons. in addition to the eRS installations, 
we have developed improved measurement 
tools to optimise the economic return at 
each site and validate eRS performance.
Strategy
o ur current strategy is based on sharing 
in the economic benefits provided by the 
eRS in ethanol plant installations. Benefit 
sharing begins with the start of commercial 
operations. t he initial installations referenced 
above are part of our early Adopter (“eA”) 
programme, under which we cover the risk 
of installation in pioneering plants, which also 
pay us a privileged lower benefit share in 
recognition of the heightened risk they faced 
and the credibility they conferred upon us. 
t his means that existing eRS installations 
remain PdX assets. t he eA programme 
is now ending, and as our business model 
develops, the next adopters are contributing 
to the costs of eRS installation. At the heart 
of our strategy is the need to optimise 
and validate eRS performance at each 
installation, ensuring that we have a deep 
understanding of operating characteristics 
under the fullest possible range of process 
designs and working environments. t his 
process includes precise measurement 
of the financial benefits that our system 
delivers, to establish an agreed benefit  
and commercial terms with customers. 
While invoices have been issued to some 
of our existing production partners, the 
challenge still remains of achieving those 
auditable results that confirm the financial 
benefits our customers have received 
with the eRS. o nce this process has been 
completed with our current sites, we should 
see the benefits of a substantial and rapidly 
increasing income stream as we accelerate 
our installation programme. u pon completion 
of validation, we will begin targeting larger 
producers with bigger scale production 
portfolios. Whilst the priority focus remains 
on our g eneration 1 biofuels business, we  
are continuing to look at the best way to  
help meet future industry requirements, 
including the emerging needs of g eneration 
2 and g eneration 3 companies for which  
our technology is also highly appropriate. 
Benefits
t he core benefits of our eRS are based 
on a unique hydrolysis technology that 
enables ethanol plants to achieve enhanced 
economic performance from their existing 
assets. eRS aims to drive improved 
conversion of starch to fermentable  
glucose, reduce fermentation cycle  
times and enable higher throughput by 
increasing mash solids at constant yield 
for greater ethanol production. individual 
customers may see one or a combination  
of these benefits, depending on their  
ethanol plant(s) configuration. 
2010
2011
nil
314
Key performance indicator
g allons installed (mg PA)
Key customer benefits
•	 decreased enzyme usage
•	 g enerally improved fuel yields (corn to ethanol)
•	 Cycle time improvements
•	 Potential for increased plant productivity
Primary Markets
•	 t he ethanol-from-corn-starch industry 
(g eneration 1)
•	 Companies researching and developing 
solutions in the cellulosic market (g eneration 2)
•	 t hose active in the algal, biofuels sector 
(g eneration 3)
15  Pursuit Dynamics plc 
Annual Report and Accounts 2011
Operating and financial review governance Accounts Adding value through… overview BreWing, fOOD & BeverA ge
Our BreWing, fOOD & BeverA ge l OB is DeDic AteD 
t O Delivering neW levels Of PrOcess AnD energ Y 
efficienc Y t O inDustrY sect Ors WHere ecOnOMic AnD 
envirOnMent Al cOnsiDerA tiOns Are funDAMent Al 
cOMMerciAl PriOrities . 
critic All Y , Our tecHnOl Ogies Are PrO ven t O Drive 
signific Ant reDuctiOns in PrODuctiOn cOsts Al OngsiDe 
enHAnceD PrODuctivit Y WitH nO iMPA ct On PrODuct 
Qu Alit Y . in ADDitiOn, tHeY Are AlreADY HelPing MAJOr 
PrODucers reDuce tHeir c ArBOn fOO tPrint in line  
WitH tHeir envirOnMent Al strA tegies .
Heinz-Jürgen Kroner
Senior Vice President and General Manager of Brewing,  
Food & Beverage
h einz-Jürgen holds an engineering degree in brewery science from  
the g erman technical u niversity of Munich, one of the world’s leading 
academic institutions in the field. h e joined t uchenhagen Brewery System 
g mbh in 1998, becoming g eneral Manager in 1999. in 2001, he moved 
to assume responsibility for all the beer and brewery activities of the ge A 
g roup, including the acquisition of the h uppman Ag Brewery. h e joined  
PdX in o ctober 2010.
16  Pursuit Dynamics plc 
Annual Report and Accounts 2011 Key customer benefits
•	 Reduced production costs
•	 Reduced processing time
•	 Significant energy savings
•	 t he assurance of excellent product quality
•	 Reduced carbon footprint vs set targets
Primary markets
t here are important roles for both our 
technologies among:
•	 food producers, large and small
•	 brewers
•	 beverage producers
marketing and commercialisation of  
a number of our brewing applications. in 
food, we already have an installation base 
established among food companies. o ur 
focus is on strengthening our ideas pipeline  
in the u K and the eu based on selling  
directly to manufacturers while using our 
own R&d facilities to trial new recipes 
and products. in addition, this year we 
plan to seek a commercial partner with an 
established international sales force to help 
market our technologies globally and provide 
after-sales support.
During the year
during the last year, our product 
development activities have sought to 
demonstrate to our existing and potential 
partners the real benefits of our solutions. 
in brewing, we have used our Reactor 
technology to target wort-heating and 
mashing, two of the most expensive 
processes that are typical challenges  
to brewers. 
o ur wort-heating application, which is 
now under commercial contract to the 
Susquehanna Brewing Company and 
Radeberger g ruppe, and is being piloted by 
MillerCoors and Warsteiner, provides the 
opportunity to reduce energy consumption 
by up to 50% during wort-boiling, equating 
to full return on investment in between 12 to 
18 months. in addition, it delivers improved 
flavour stability and consistency from one 
brew to the next and critically, in 2010, 
passed the strict g erman beer purity laws. 
We identified two new products for the 
brewing industry and we seek to roll 
those out to our existing customer base 
and beyond. t hey include a new mashing 
solution which was launched on 9 n ovember 
2011, which reduces processing times and 
costs thanks to maximised enzyme activity 
as well as ensuring the highest possible 
product quality with minimum waste. We 
are also set to launch a comprehensive 
room, pipework and tank farm disinfection 
solution in 2012, which uses our Atomiser 
technology to enable easy and cost-effective 
decontamination while dramatically reducing 
water usage and chemical costs.
in the food industry, our Reactor-based 
PdX Sonic solution which we developed 
further during the year is already a proven 
solution for the production and processing 
of a wide range of foods through its ability 
to heat, homogenise, emulsify, entrain 
and pump any liquid food, including ready 
meals, custards, ice cream mixes and more. 
ingredient quantities, such as starch, gums 
and spices can be reduced, while maintaining 
or even improving flavour profiles and 
product quality. t his is vital as ready meals 
continue to grow in popularity in europe 
where consumers are particularly demanding 
regarding product quality and flavour. As 
a response to growing demand, we have 
invested in building the expertise of our food 
team, to more effectively and efficiently 
develop and test new products.
Multiple successful trials undertaken during 
the year, on areas including blackcurrant 
processing, wheat drinks, croquettes and 
several beverages, are now forming the 
foundations of our forward sales pipeline. 
n ow that we have successfully proven the 
efficacy of our technologies and growing 
product ranges, often with the help of 
external partners including technical 
u niversity Munich Weihenstephan, vl B 
Berlin and doemens, we expect to see  
a reduction during this financial year in  
the time taken between enquiry and sale.
Strategy
o ur twin strategic approach within this  
lo B takes into account the important 
technical differences required by brewing 
companies and food processors and the 
contrasting structure of their industries. 
in brewing, the major applications for our 
technologies revolve around the provision 
of process optimisation and energy-saving 
in bespoke production facilities. in food 
production, the use of smaller specialist 
machines and growing consumer demand 
for enhanced product quality and hygiene 
enables a greater level of product and 
component standardisation.
For these reasons, in the brewing industry 
our primary focus is to establish a strong 
and growing base of installations within 
a restricted geography before selecting 
clusters of strategic partners in key sites 
across the world. it is likely that in due course 
we shall enter into licensing agreements with 
one or more partners to accelerate the 
17  Pursuit Dynamics plc 
Annual Report and Accounts 2011
Operating and financial review governance Accounts Adding value through… overview
17  Pursuit Dynamics plc 
Annual Report and Accounts 2011 PuBlic HeAl tH & sAfet Y
Our PuBlic HeAl tH & s Afet Y lOB fOcuses On tHe Devel OPMent 
AnD cOMMerciAlis AtiOn Of DecOnt AMinA tiOn, DisinfectiOn AnD 
DecOMMissiOning sOlutiOns fOr tHe Milit ArY , civil Defence, 
cOMMerciAl DisinfectiOn, HeAl tHc Are AnD nucleAr MArKets . 
tHere Are KeY rOles fOr BO tH Our PrO ven cOre tecHnOl Ogies  
in All tHese MArKets: Our A t OMiser tecHnOl Og Y in PArticul Ar  
is PrO ving itself HigHl Y APPrOPriA te fOr treA ting AirBOrne  
AnD surf Ace cOnt AMinA tiOn, AnD Our reA ct Or tecHnOl Og Y is 
suit ABle fOr tHe DecOnt AMinA tiOn Of BOtH liQuiDs AnD sOliDs . 
BOtH PrO viDe cust OMers WitH A Benefit tHA t cOMBines effic Ac Y 
WitH efficienc Y .
Hagen Gehringer
Senior Vice President and General Manager of Public Health & Safety
h agen joined PdX in the summer of 2011 following 12 years with Alfred 
Kärcher g mbh & Co Kg . h e rose to become managing director of subsidiary 
company KärcherFuturetech g mbh , which develops, manufactures and 
markets mobile water purification and bottling, decontamination and field 
camp systems. Following his first degree in Mechanical engineering and 
doctorate from the u niversity of Stuttgart, he was a scientific researcher  
at Stuttgart’s Fraunhofer institut Produktionstechnik und Automatisierung 
for six years.
Strategy
o ur strategy to exploit the commercial 
potential of our technologies in these 
markets is first to identify specific 
applications that meet pressing customer 
needs for mission-critical applications 
requiring high levels of usage in any given 
year. Based on successful proof of principal 
exercises, we then move on with them to 
develop prototype products that include our 
technology. We can then either license our 
technology to them to create an annually 
renewable revenue stream, or enter a joint 
venture (“ Jv”) in which we share the profits 
accrued from efficiency savings.
A key example of the Jv approach is our 
60% share of the nd X business, launched 
in partnership with the national nuclear 
l aboratory l td (“nnl ”) which aims to  
create nuclear decommissioning solutions  
in the u K. t his opportunity is progressing 
well, and we are targeting the agreement  
of approved procedures for projects  
involving four different aspects of nuclear 
de-commissioning during 2011–12.
18  Pursuit Dynamics plc 
Annual Report and Accounts 2011 Key customer benefits
•	 o utstanding airborne and surface 
decontamination/disinfection capability 
(Atomiser)
•	 excellent decontamination capability for liquids 
and solids (Reactor)
•	 Flexible product development opportunities
•	 Flexible deployment: portable and built in
Primary markets
•	 Military
•	 Civil defence
•	 Commercial disinfection
•	 h ealth care
•	 nuclear decommissioning
in pursuing our strategy during the year 
under review, our main priority has been 
to undertake the proof-of-principle work 
that is necessary within the main sectors 
to demonstrate to our potential partners 
the advantages our technologies deliver. 
Where required, we have also progressed 
to developing product prototypes that 
demonstrate their efficacy in a practical 
environment and enable the feedback  
of lead users. 
During the year
t he year has been highly successful on 
a number of fronts, gaining the trust and 
support of key partners in a range of 
markets. For example, we have satisfactorily 
demonstrated the efficacy of our Atomiser 
technology in a backpack-based ‘First 
Responder’ decontamination system for use 
in Military and Civil defence applications, 
with a view to switching on the sales pipeline 
during this financial year and ramping it up 
during 2012–13. 
We have also carried out a series of 
successful trials for markets including h ealth 
Care which proved our Atomiser’s efficacy in 
disinfecting surfaces that are hard to reach 
with any other system. in addition, we have 
established a co-operative partnership with 
a chemicals company that will enable us to 
licence integrated systems (including device, 
disinfectant and methods of use) to partners. 
t his has already returned encouraging results  
in treating all the biological contamination  
we addressed. 
A significant amount of effort is required to 
satisfy the key questions asked by potential 
partners. t his takes some 15 to 18 months 
before moving on to developing actual 
applications, which averages only around 
20% of the time taken in the question-
answering process. We have now completed 
the time-consuming proof-of-principle 
process on many fronts, and therefore 
expect to see strengthening commercial 
returns from live applications during this 
financial year and next, based on a portfolio 
of excellent partnerships across each 
marketplace. PdX and Kärcher Futuretech 
g mbh are currently reflecting on how best 
to approach the market, given the recent 
changes in the military market. We continue 
to work with Biomimetics h ealth industries 
(u K) l td and their patented disinfection 
chemistry, Salvox.
each of these addressable markets is of 
a significant size and shows considerable 
growth potential. 
19  Pursuit Dynamics plc 
Annual Report and Accounts 2011
Operating and financial review governance Accounts Adding value through… overview WAste treA tMent
tHe W Aste treA tMent l OB HAs Been fOrMeD t O eXPl Oit PDX reA ct Or 
tecHnOl Og Y in tHe treA tMent AnD PrOcessing Of WA ste MA teriAls. 
tHis incluDes MuniciPAl seWA ge, A gricul turAl WA ste, fOOD WAste 
AnD inDustriAl WA ste.
t he PdX Reactor technology has been 
trialled over the past twelve months in a 
municipal waste plant in Alabama u SA, 
Cranfield u niversity and t hames Water’s 
Basingstoke sewage treatment plant. Results 
to date have generated statistically significant 
data to support the development of product 
applications in pathogen kill ( as an instant and 
cost efficient replacement to pasteurisation) 
and the pre-treatment of food waste for 
anaerobic digestion. trials are also ongoing 
at Basingstoke to support a third product 
designed to enhance biogas generation  
from municipal waste anaerobic digestion.
All proof of concept trials are expected 
to conclude at t hames Water during 
Q2 of calendar 2012. Subject to final 
results we anticipate entering a product 
development phase with t hames Water 
and isle u tilities leading to the first product 
installation at reference sites as soon as 
practicable thereafter.
t he business strategy for waste treatment 
is to license the family of products to 
established waste industry specialists on  
a regional basis. PdX believes that this will 
lead to accelerated business development 
and professional product delivery.
t his is an exciting opportunity for PdX  
and the addressable market is significant. 
20  Pursuit Dynamics plc 
Annual Report and Accounts 2011 inDustriAl licensing
tHe PDX inDustriAl licensing l OB seeK s t O PArtner WitH WOrlD 
cl Ass OrgAnis AtiOns WHicH c An utilise PDX tecHnOl Ogies t O gAin 
signific Ant OPerA tiOnAl , envirOnMent Al AnD finAnciAl Benefits Or 
WitH MArKet-leADing OriginAl eQuiPMent MAnuf Acturers (“OeMs ”) 
WHO c An A cHieve MeAningful MArKet sHAre AnD OPtiMAl PrODuct 
DeliverY t O tHeir cust OMer cHAnnels.
tHe licensing APPrOA cH ensures tHA t We give Our tecHnOl Ogies 
tHe OPPOrtunit Y t O Access AnD trAnsfOrM inDustriAl OPerA tiOns 
AcrOss gl OBAl MArKet leADers .
We can do this without investing in sales, 
marketing and manufacturing that is 
required in a direct sales model, relying upon 
our in-house scientific and engineering 
knowledge base and expertise.
We are generating key customer and partner 
relationships upon which the Company’s 
future licensing success will be built. t he 
industrial l icensing loB implements our 
licensing-driven business model in which 
we plan to partner with some of the world’s 
largest industrial manufacturing companies 
who benefit from using our Reactor 
technology.
these include developing innovative 
approaches for improved industrial processes 
that deliver a wide range of benefits including 
product innovation, reduced energy and 
ingredient use, accelerated processing times, 
improved productivity and quality, and a 
smaller environmental footprint.
Partnerships
Procter & g amble is the most developed of 
our new licensing opportunities. Following 
initial trials in huntingdon nearly two years 
ago, PdX entered into a Joint development 
Agreement with Procter & g amble in 
n ovember 2010. during the past year we 
have installed and developed a trial rig at the 
Procter & g amble innovation Centre in the 
u K. Additional relationships are at various 
stages of development with a number of 
other multinational companies. We expect to 
update the market over the course of 2012. 
t he licensing model reflects an equitable 
proportion of the profits realised through 
cost savings, process improvements  
and innovation.
Focus
We target two primary types of organisations 
for industrial l icensing; first, companies 
that play a leading role in their industries; 
and second, leading oe Ms that serve a 
large and diverse client base. We have 
active relationships with both types of 
organisations, and we are working closely 
with our partners and customers to develop 
and implement the solutions that their 
businesses need. 
Outlook
With a trial agreement in place and 
the potential for more, the scale of 
the opportunity provided by industrial 
l icensing is growing. testing, planning and 
development are advanced on several fronts 
and we look forward to realising annual 
revenue streams that provide the Company 
with a recurring financial inflow.
Primary markets
•	 dominant market leaders
•	 l eading oe Ms
Key customer benefits
•	 tailored improvements to customer-selected 
industrial processes
•	 Reductions in processing time
•	 improved profit margin achieved  
through capex and opex savings
•	 improved environmental credentials
21  Pursuit Dynamics plc 
Annual Report and Accounts 2011
Operating and financial review governance Accounts Adding value through… overview Financial highlights
Key highlights
2010
2011
21
32
Sales, marketing and administration
average number of employees
2010
2011
22
35
Engineering, Research & Development
average number of employees
2010
2011
£nil
£419,387
Order book of committed sales
2010
2011
nil
314
Ethanol – gallons installed (mGPA)
2010
2011
(£7,292,795)
(£11,807,714)
Operating expenses
2010
2011
£194,749
£1,940,576
Capital expenditure
2010
2011
£128,019
£490,382
Revenue
2010
2011
£5,643,075
£10,948,258
Cash outﬂow from operating activities
finAnciAl O vervieW
22  Pursuit dynamics plc 
Annual Report and Accounts 2011 FinAnCiAl RevieW
cHAllenges AnD PrOgress
During tHe YeAr, PDX MADe PrOgress t OWArDs cOMMerciAlising 
its lines Of Business t O Bring t O MArKet iMPOrt Ant AnD vAlu ABle 
APPlic AtiOns Of its t WO cOre tecHnOl Ogies . HOWever revenue 
generA tiOn HA s Been cHAllenging.
Richard Webster 
Chief Financial Officer
during the year important building blocks 
of the Company’s strategy have been put 
in place, securing a number of milestones in 
product development and the strengthening 
of our business development teams. g iven 
the challenges in generating revenues we 
have increasingly concentrated on near-term 
revenue opportunities.
t he year under review saw the Company 
successfully raise £8 million before expenses 
through a placement of shares to invest  
in our resources, product development  
and customer relationships. We have 
raised our headcount and driven the 
market-readiness of our new mashing 
and disinfection solutions for the brewing 
industry, the progress of our nd X joint 
venture with the national nuclear l aboratory 
l td, the successful installation of our eRS 
technology in u S-based ethanol production 
facilities, and the proof-of-concept testing 
of our new Atomiser-based backpack 
decontamination system.
t his investment has therefore enabled the 
creation of long-term platforms to create 
revenues for the Company in 2011–12  
and beyond. 
Trading
t he Company delivered a loss before tax 
during 2010–11 of £15.3 million (up by 68%  
over the previous year’s loss of £9.1 million).  
t he increase was due to the programme  
of investment that continued throughout  
the year to create a solid platform for future 
trading through expenditure on Company 
resources and new product development. 
importantly, a number of installations  
have been successfully commissioned  
at client sites.
23  Pursuit Dynamics plc 
Annual Report and Accounts 2011
Operating and financial review governance Accounts Adding value through… overview Revenue
t he majority of our revenues during the year 
were from the food sector, which is the most 
mature element of our business following 
our decision to reactivate our activities in 
this marketplace during 2010–11. We also 
generated maiden revenue from our eA 
programme in the Bioenergy lo B, in which 
we funded the installation of our technology 
in pioneering ethanol production plants. 
While the revenues generated were 
significantly below expectations for the  
year, it is important to note that sales have 
now started through more than one line  
of business, an indication of the likely mix  
of sales to come during 2011–12.
Capital expenditure
Spending on our fixed assets during the year 
totalled £1.9 million, of which the substantial 
majority (£1.3 million) was spent on installing 
our technologies in nine u S ethanol 
production plants. in the future, now that 
the eA stage of the installation programme 
is complete, clients will fund these installation 
costs, as our business model matures. By 
30 September 2011, two of these plants  
were generating commercial revenues for  
us, one was at the final stage of trials and  
the remainder were at various stages of  
work in progress.
A significant proportion of the balance of 
our capital expenditure was used to upgrade 
our R&d facilities in h untingdon, with a 
view to accelerating the commercialisation 
of our technologies and streamlining the 
sales process. t he balance was spent 
on improving our back office resources, 
including the development of our new  
Swiss operations.
Operating expenses
excluding non-cash operating expenses, our 
operational expenditure rose in 2010–11 to 
£11.8 million from £7 .3 million the previous 
year. t he main non-cash item was the 
share-option charge of £3.6 million. during 
the period, our average headcount rose 
from 43 to 67 people. We very deliberately 
focused on two areas of recruitment. First, 
we brought 13 engineering, design and 
development professionals into the business 
in order to further increase the value of our 
iP , raising numbers from 22 to 35. Second, 
we introduced an additional 11 in the area 
of sales, marketing and support, increasing 
numbers in this area from 21 to 32 in order  
to streamline further the commercialisation 
of our technologies and take new products 
and services to market.
Taxation
t he development of new technology and 
applications is now driven from our Swiss 
structure and to support this change a 
number of Swiss operating companies have 
been created. it is also underpinned by a 
formal transfer-pricing policy which sets the 
foundations both for a tax-efficient status for 
the Company and coherent internal pricing 
agreements. While setting up this new 
structure involved an associated expense 
during the year under review, we believe  
that it will prove to be a prudent move, as  
the Company moves into profit but remains 
subject to review by the Board.
Cash flow
t he total cash outflow from operating 
activities for the Company during the year 
was £10.9 million, up from £5.6 million 
in 2009–10. t his was due to general 
trading losses as we continued to invest 
in the business, and our technological 
development. o ur capital expenditure 
programme resulted in an additional cash 
outflow of £1.9 million, up from £0.2 million  
in 2009–10. t he Company has no 
borrowings and has a negligible lending 
facility with its bankers, Barclays. Positive 
cash funds are conservatively managed 
through deposits on the short-term Sterling 
money markets.
o ur total cash position on 30 September 
2011 amounted to £7 .3 million, benefiting 
from our fund-raising activities during the 
year which delivered an injection of £8 million 
before expenses.
KPIs
PdX is now focussing on a small number of 
KPis as lead indicators of performance. t he 
installed base of Bioenergy lo B indicates the 
scale of operations that should progressively 
lead to recurring revenues. t he Forward-
o rder-Book measure identifies the value of 
fixed price contracts signed and yet-to-be 
completed. g oing forward this will also 
include licences with guaranteed payments.
Summary
t he Company is currently loss making and 
cash flow negative. t he Board has taken 
and continues to take a number of actions to 
conserve the cash resources of the business 
whilst prioritising activity in those areas seen 
as most likely to secure revenues in the near 
term. t he plan entails the implementation 
of identified reductions in development 
activities and further significant reductions 
in the operating cost base of the g roup in 
the second half of calendar year 2012. Such 
actions could slow the g roup’s development 
and have an adverse effect on its business in 
the longer term. if, as the Board anticipates, 
the business succeeds in generating material 
revenues, the g roup will continue to invest  
in the commercialisation of its PdX reactor 
and atomising technology in order to grow 
the business.
Richard Webster 
Chief Financial o fficer
FinAnCiAl RevieW Continued
24  Pursuit Dynamics plc 
Annual Report and Accounts 2011 PRinCiPAl RiSKS And unCeR t AintieS 
MitigA ting risK
tHe MAnA geMent Of tHe Business AnD tHe eXecutiOn 
Of tHe grOuP’s strA teg Y Are suBJect t O A nuMBer 
Of risK s . tHese risK s Are fOrMAll Y revieWeD BY tHe 
BOArD AnD APPrOPriA te PrOcesses AnD cOntrOls 
iMPleMenteD t O MOnit Or AnD MitigA te tHeM.
t his section highlights some of the key risks and uncertainties which 
affect PdX, but it is not intended to be an exhaustive analysis of all 
risks facing the business. Formal risk management processes are in 
place to identify and evaluate risks taking into account the likelihood 
of their occurrence, the scale of potential impact on the business 
and the impact of planned risk mitigation actions, so that risks can 
be ranked and actions suitably prioritised. g iven that some risks are 
external and not fully within our control, the risk management 
processes are designed to manage risk which may have a material 
impact on our business, rather than to fully mitigate risks.
At executive level, each of the risks has an identified owner to ensure 
senior management accountability for risk mitigation measures. t he 
Audit Committee reviews in detail and monitors those risk mitigation 
plans, ensuring that plans work across the g roup as well as the 
sharing of best practice.
RiSK deSCRiP tion RiSK to Pd X MitigA tion
Financial By its very nature the adoption of new technology 
by clients is uncertain in terms of value and timing.
l ooking forward, the funding position of PdX is 
dependent on a number of projects and licences 
with clients being successfully concluded in the 
near term.
Strong business planning and regular review 
processes exist, giving high visibility. Cost and project 
controls are in operation, aligned to the uncertainty  
of revenues.
t he rights issue and placing of shares in February 
2012 provide the g roup with sufficient funds for at 
least the next 12 months.
Emergence of real 
competition
o ur PdX range of technology is unlikely to 
be directly replicated; however, a number of 
technologies claim to deliver similar benefits in a 
different way. t his would potentially reduce our 
pricing power in the markets we operate in.
We continually monitor competitive development and 
year-on-year invest in refining our technology and 
its application. increasingly we also employ industry 
experts, who are able to communicate our unique 
technical advantages.
Execution risk to deliver high performance solutions to our 
customers there are a myriad of operational  
and technical steps that need to be delivered  
to plan. o ften these steps require multiple 
iterations of tests prior to operational installation 
and commercialisation. t he risk is that negative 
cost, time and quality issues will adversely  
impact Company profitability and reputation  
with our clients. PdX faces a range of compliance, 
requirements and business interruption risks.
We have invested heavily in improving the quality and 
numbers of critical engineering, scientific and project 
management staff. improvements to our supply  
chain have been made and project reporting has 
been introduced. Compliance risks are monitored 
at the Audit Committee and we have augmented 
our legal and h ealth and Safety capability. Business 
interruption planning is formalised and an it upgrade 
is currently in hand.
Retention of skilled staff We are dependent on a number of experienced 
individuals and teams to deliver progressive 
technology development and excellent results  
for our clients. A risk emerges that without them, 
our delivery will be delayed and both revenues  
and reputation may be adversely impacted.
A thorough staff performance management process 
is in place to ensure their performance is appropriately 
rewarded. Staff retention is closely monitored and 
remuneration packages are regularly bench-marked. 
Anti-poaching clauses exist in our legal agreements 
with our clients and suppliers.
Economic model of gain 
shares proves difficult to 
enforce or measure
o ur PdX business model is built on recurring 
income streams that are determined by a share of 
economic benefits from our clients. t he accurate 
measurement at operational sites can be complex. 
A risk of undervaluing our PdX technology in a 
‘capital’ or ‘one-time’ sale needs  
to be avoided.
o ur strategy is to focus on industries and sectors 
where gain sharing is more accepted as a business 
practice. Where this is not the case, selective 
partnering with an industrial counter-party on 
a licence-only basis will be actively pursued. 
Measurement of economic benefit is subject to 
internal protocols and formally agreed in advance  
with our clients.
25  Pursuit Dynamics plc 
Annual Report and Accounts 2011
Operating and financial review governance Accounts Adding value through… overview ChAiRMAn’S intRoduC tion to goveRnAnCe
Dear Shareholder 
Overview 
i am pleased to once again confirm that your Company is compliant with the 
u K Corporate g overnance Code as the directors believe it to be appropriate 
to the g roup. As Chairman of the Board, i am responsible for its leadership 
and for ensuring its effectiveness. i expect all d irectors, but particularly non-
executive directors, to constructively challenge proposals that come to the 
Board for decision and to contribute to the development of strategy. t his is 
one of the key criteria i have used in evaluating the contribution of d irectors 
during the year . 
t he Company’s shares were admitted to trading on the Alternative 
investment Market (“AiM”) of the l ondon Stock exchange on 23 May 2001. 
t he g roup is therefore subject to the AiM Admission Rules of the l ondon 
Stock exchange and is consequently not required to comply with the 
best practice corporate governance provisions contained within the u K 
Corporate g overnance Code published by the Financial Reporting Council. 
however , the d irectors have considered the provisions of the u K Corporate 
g overnance Code (formerly the Combined Code 2008) and are committed 
to high standards of corporate governance of its affairs as part of its 
management of relationships with its Shareholders and other stakeholders. 
Board changes
As previously mentioned in my opening letter , we were delighted to welcome 
Jeremy Pelczer and Bernard Bulkin to the Board, as non- executive directors 
during the year and are pleased that Jeremy Pelczer has agreed to serve  
as interim Ceo , following the resignation of Roel Pieper in december 2011.  
in this section of the Annual Report, we have included overviews of the  
Audit and Remuneration Committees, together with my overview of the 
activities of the nominations Committee which i also chair .
Summarised on the following pages are the principles that have been  
applied in the g roup, and the extent of current compliance taking into 
account the size of the g roup. 
Andy Quinn
Chairman
26  Pursuit Dynamics plc 
Annual Report and Accounts 2011 Composition of the Board
executives 2 
non-executives 3
Bo ARd oF diReC toRS
Richard Webster
 3
Chief Financial Officer and Company 
Secretary (46)
Richard Webster has for more than ten years 
operated as CFo in technology, outsourcing 
and transport businesses. Following an early 
career in l ondon’s financial district, Richard 
trained as an accountant in a progressive it 
business. Moving to Serco g roup plc, the 
fast growing outsourcing business, Richard 
held a number of senior roles in the company 
in the defence and transport sector. t his led 
to him being chosen to become the Finance 
director for the company that manages 
l ondon’s iconic red buses and taxis, transport 
for l ondon. in 2007 he accepted a new role 
as CFo for a private equity owned business, 
l iberata. Richard accepted the role as CFo  
of Pursuit dynamics in o ctober 2010.
Bernard Bulkin
 1,2,3
Non-Executive Director (69)
Professor Bernard Bulkin joined the Board in 
June 2011. Following a distinguished academic 
career in the u nited States, Bernard has been 
involved with a range of scientific, technology 
and engineering businesses, including holding 
the position of Chief Scientist of BP plc, 
serving as Chairman of AeA technology plc 
serving as the current Chair of the o ffice of 
Renewable energy deployment at the u K 
department of energy and Climate Change 
and serving as a n on-executive director of 
Severn trent plc. Bernard’s stature in the 
academic and business community, together 
with his extensive experience in start-ups, 
clean technologies and the fuel and energy  
related industries will bring significant  
benefits for PdX.
Andy Quinn
 2,3
Chairman and Non-Executive Director 
(58)
Andy Quinn joined the Board in May 2005. 
u ntil december 2011, he was a Managing 
director in the investment Banking division  
of CiBC World Markets, which he joined in 
1996 after 12 years with h SBC investment 
Banking in l ondon. h e is a Chartered  
engineer, having worked in the mining industry 
in Africa and Australia during the 1970s 
and early 1980s, before joining the financial 
services sector more than 25 years ago.  
h e is a non- executive director of Randgold 
Resources l imited.
Jeremy Pelczer
3 
Interim Chief Executive (54)
Jeremy Pelczer joined the Board in June 
2011. h e is a very experienced director who 
has held senior positions in engineering and 
industrial businesses including serving as 
Ceo of RW e t hames Water and American 
Water. h e is a n on-executive director of 
South Staffordshire Water and Chairman 
of WaterAid, a charity with the aim of 
enabling the world’s poorest people to gain 
access to safe water and sanitation. h e is 
also the founder and principal of l andara, 
an executive mentoring and business 
advisory consulting firm. Jeremy’s extensive 
experience and contacts within the water 
industry will be of great assistance as we  
roll out our Waste treatment lo B.
Brian Sweeney
 1,2,3
Non-Executive Director (67)
Brian Sweeney was formerly director of 
international Marketing with Rolls Royce plc 
and held senior management positions with 
t he Royal dutch/Shell g roup of Companies. 
Brian is also currently a director of Fastnet 
energy Consultants, Braintree h ealthcare l td 
and Miller uK l imited. 
Key
1
 Member of Audit Committee 
2
 Member of Remuneration Committee 
3
 Member of nominations Committee
27  Pursuit Dynamics plc 
Annual Report and Accounts 2011
operating and financial review Governance Accounts Adding value through… overview The Board
Pursuit dynamics plc is led by a strong and experienced Board. 
t hree out of the current five d irectors are n on-executive 
strengthening the independent representation of the Board.  
t he Chairman is one of the n on-executive directors and there  
is a clear division of responsibility between the Chairman and  
the interim Chief executive. t he role of the Chairman and the 
n on-executive directors is to review and determine the strategic 
aims of the Company and to monitor performance against the 
business plan and budget. t he role of the Chief executive is to 
maintain overall responsibility for the operations of the business,  
the performance against the budget and business plans. u nder  
the Company’s Articles of Association, at least one-third of the 
Board is subject to retirement and re-election each year.
t he Board provides leadership of the g roup within a framework 
of prudent and effective controls. t his includes responsibility for 
determining the g roup’s strategy and for approving short and 
medium term plans for achieving this strategy. t he Board has  
a schedule of matters specifically reserved for the Board and all 
major and other strategic decisions are reserved to the Board 
which also has responsibility for corporate governance matters, 
approving major items of capital expenditure, senior executive 
remuneration and succession planning for top management. All 
directors take decisions objectively in the interests of the g roup. 
As appropriate, the Board has delegated certain responsibilities 
to Board Committees, which operate within clearly defined terms 
of reference. Standing committees of the Board include the 
Audit Committee and the Remuneration Committee, with each 
Committee consisting entirely of non- executive directors and 
is chaired by one of the n on-executive directors. t he function 
of a n ominations Committee is performed by the whole Board. 
A technology Advisory Board oversees the development of the 
g roup’s iP portfolio and technology.
t he Board met eight times for regularly scheduled Board meetings 
and twice for scheduled strategy meetings during the year to 
30 September 2011. At each regularly scheduled meeting, there  
is a full financial and business review and discussion, including 
operating performance to date against the annual budget and 
financial plan previously approved by the Board for that year. 
each Board member receives monthly operating results, including a 
comprehensive commentary and analysis. t he Board has additional 
meetings when circumstances and urgent business requires and, at 
all times, maintains an open forum for communication by telephone 
and email. 
t he Company maintains directors and o fficers insurance of 
£10 million and directors may obtain independent professional 
advice as required with the agreement of the Chairman.
Prior to each Board meeting, directors are sent an agenda and a 
set of Board papers for each agenda item to be discussed at the 
meeting. Additional information is provided as appropriate. Whilst 
the Board retains overall responsibility for the control of the g roup, 
daily management is conducted by the Chief executive o fficer and 
Chief Financial o fficer.
Board sub committees
t he Board has three sub committees:
Remuneration Committee
Bernard Bulkin is the chair of the Remuneration Committee (having 
replaced Brian Sweeney as chair in July 2011). t he Remuneration 
Committee, which consists exclusively of non- executive directors,  
is responsible for making recommendations on the g roup’s 
framework of executive remuneration, and for determining specific 
remuneration packages for each executive director and oversees 
the operation of the g roup’s bonus plan and share option plans. t he 
Board as a whole determines the remuneration of non- executive 
directors. A full report on remuneration policy and details of the 
remuneration of each director can be found in the Report of the 
Remuneration Committee on pages 32 to 34.
t he members of the Remuneration Committee as at 30 September 
2011 were Bernard Bulkin, Jeremy Pelczer, Brian Sweeney and Andy 
Quinn. Jeremy Pelczer has since stepped down as a result of his 
appointment as interim Ceo .
Audit Committee 
Brian Sweeney took over chair of the Audit Committee (having 
replaced Jeremy Pelczer who was chair at 30 September 2011) in 
december 2011. t he Audit Committee is responsible for reviewing 
the effectiveness of the g roup’s financial reporting and internal 
control policies and risk management systems, and for maintaining 
an appropriate relationship with the g roup’s auditors. t he Audit 
Committee has a particular role to ensure that the interests of 
Shareholders are properly protected in relation to financial reporting 
and internal control.
t he Audit Committee is comprised entirely of independent 
non -executive directors. Members during the year have been 
Jeremy Pelczer (Chairman from July to december 2011), Bernard 
Bulkin (from July 2011), Brian Sweeney (Chairman from december 
2011) and, prior to their resignations in June 2011, Stuart evans and 
Michael Ryan. 
t he external auditors’ lead partner and the Chief Financial o fficer 
attend each meeting as requested by the Committee. t he Board 
considers that the membership of the Committee as a whole  
has recent and relevant financial experience properly to discharge  
its functions.
t he Audit Committee met six times during the year. during the 
year the members of the Committee took the opportunity of 
meeting the external auditors without management being present. 
t he Audit Committee is responsible for reviewing on behalf of the 
Board the g roup’s financial and reporting practices and disclosures, 
reviewing the integrity of the financial statements, the g roup’s 
system of internal controls, the work of the external auditors and 
g roup compliance with financial policies, laws and regulations. Audit 
Committee terms of Reference may be obtained from the g roup’s 
website www.pdx.biz. 
t he annual and half-yearly financial reports are reviewed by the 
Committee through a process which includes discussion with 
the Chief Financial o fficer and the external auditors. t he Audit 
Committee gives its recommendation to the Board concerning  
the adoption and publication of all financial reports to Shareholders.
n on-audit services
t he Committee reviews and approves the award of any such work. 
t he Audit Committee refers to the Board for approval of any work 
comprising non-audit services where the fees for such work will 
represent a significant proportion of the annual audit fee.
CoRPoRA te goveRnAnCe
Attendance at Board meetings
t he number of Board meetings, held during 2010–11,  
were 15 and attendance was as follows:
Andy Quinn 14
Roel Pieper 14
Richard Webster 13
Brian Sweeney  13
Bernard Bulkin  5
Jeremy Pelczer  5
28  Pursuit Dynamics plc 
Annual Report and Accounts 2011 Audit Committee continued 
Auditor independence
t he Audit Committee keeps under review the scope and results 
of the external audit work, its cost and the independence and 
objectivity of the auditors. t he independent auditors operate 
procedures to safeguard against the possibility that their objectivity 
and independence could be compromised. t his includes the use of 
quality review partners, a technical review board (where appropriate) 
and annual independence review procedures. t he auditors are 
required to rotate the lead audit partner to the g roup every five 
years. t he Committee has considered the re-appointment of 
the auditors of the g roup and recommended to the Board that 
PricewaterhouseCoopers ll P be proposed for re-appointment, 
having noted the scope and results of their work in relation to this 
year’s audit as well as their objectivity and independence.
Nominations Committee
Andy Quinn is chair of the n ominations Committee. t he 
nominations Committee is responsible for reviewing the structure, 
size and composition of the Board and evaluating its performance, 
reviewing leadership and succession planning and identifying and 
recommending new candidates to the Board. during the year the 
n ominations Committee has driven the appointment of the two new 
non- executive directors, Bernard Bulkin and Jeremy Pelczer upon 
the retirement of Stuart evans and Michael Ryan. 
t he members of the nominations Committee are the whole Board. 
Technology Advisory Board
t he technology Advisory Board (“tAB”) meets regularly to bring 
to the Board of directors greater depth of understanding of the 
technical issues facing the loBs. t he board discussions enable us 
to learn, to challenge constructively and to share knowledge across 
the Company. t his is a forum in which the normal uncertainties of 
technology development can be addressed, options examined and  
if necessary outside expertise can be brought to bear.
t he tAB has the following explicit objectives: 
•	 to improve our understanding of the science behind our 
technologies;
•	 to improve our marketing, our communication with the customer 
on what we will deliver to him; the value proposition;
•	 to understand better the business value we bring to customers  
so as to improve strategic and competitive prioritisation; and
•	 to inform our planning of R&d.
t he terms of reference of the tAB are, in collaboration with the 
lo Bs, to investigate and review the science underlying our offerings, 
the scientific development programme and the consequent value 
proposition and then to make recommendations for desk research, 
modelling or R&d.
t he composition of the tAB is: dr Marcus Fenton;  
dr Bernie Bulkin; dr h einz-Juergen Kroener; Jens t horup;  
and dr Brian Sweeney (Chair).
Relations with Shareholders 
t he Annual Report contains information on the activities of the 
g roup for the preceding year and is sent to every Shareholder on  
the share register. t he interim Report is also sent to every 
Shareholder. Management endeavours to keep Shareholders 
informed with regular news releases. All regulatory news releases  
and reports are available on the g roup’s website www.pdx.biz.
t he Annual g eneral Meeting (“Ag M”) is the principal forum for 
dialogue with Shareholders. t he Company has also held a series  
of open investor meetings and also the directors hold meetings  
with individual Shareholders as appropriate to keep them updated  
on the Company’s progress. 
Internal control and risk management
t he directors are responsible for the g roup’s system of internal 
control and reviewing its effectiveness. identification and evaluation 
of risks is an integral part of the Board’s planning process. 
Controls within the g roup are designed to provide the Board 
with reasonable assurance regarding the maintenance of proper 
accounting records, the reliability of financial information and the 
safeguarding of assets.
A system to identify, assess and evaluate business risk is embedded 
within the management process throughout the g roup. Strategic 
risks are reviewed regularly by the Board. Risks relating to the key 
activities within the g roup are continuously assessed. 
t he g roup’s internal procedures include the following:
•	 a schedule of matters reserved for the Board;
•	 the Board aims to meet at least 10 times a year to manage the 
affairs of the g roup; 
•	 the g roup prepares an annual budget at the commencement of 
each financial year. Revised forecasts are prepared as required. 
t he budget and revised forecasts are reviewed and approved  
by the Board; and
•	 the Board monitors actual monthly financial performance  
of the g roup.
t he g roup has an appropriate organisational structure with clear  
lines of responsibility. Because of the size of the current trading 
operations and the detailed accounting and operational information 
available, the directors do not believe the expense of an internal  
audit function is justified.
Whistleblowing policy
t he Company has a whistleblowing policy that provides for the 
reporting of any issues to the Board via a process of escalation 
through management. t he policy is available to all employees and 
directors along with the Company’s other h R policies.
Corporate Social Responsibility
t he Board recognises the importance of taking into account its 
corporate social responsibility in operating the business. in this context 
it seeks to integrate social, ethical, health, safety and environmental 
considerations into its day to day operations via a series of internal 
management review procedures and Board reviews. t he Board 
acknowledges its duty to ensure the g roup conducts its activities 
responsibly and with proper regard for all its stakeholders including 
Shareholders, business partners, suppliers and local communities.
29  Pursuit Dynamics plc 
Annual Report and Accounts 2011
operating and financial review Governance Accounts Adding value through… overview DIRECTORS’ REPORT  
 
30 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
The Directors present their Annual Report and audited financial statements for the year ended 30 September 2011. 
Principal activities 
The principal activity of Pursuit Dynamics plc (“the Company”) and its subsidiaries (together “the Group”) is the development and 
commercialisation of its innovative PDX platform technology within a number of industries, and the sale of ancillary products to 
those industries. The Group develops its technology both through its own internal R&D facilities and working together with external 
partners. The Company commercialises its technology through its Lines Of Business (“LOBs”), some activities of which are 
established as joint ventures with external partners. The LOBs which have operated over the financial year ending 30 September 
2011 are Brewing, Food and Beverages, Public Health and Safety, Bioenergy, Industrial Licensing and Waste Treatment.  
Business review 
Under the provisions of the Companies Act 2006, the Group is required to produce a business review containing a fair review  
of the business and future developments of the Group and a description of the principal risks and uncertainties facing the Group. 
Shareholders are referred to the Interim Chief Executive’s Q&A, the Chairman’s Letter, the Financial Review (including key 
performance indicators) and the Principal Risks and Uncertainties section. They are intended to provide a balanced and 
comprehensive analysis of development and performance of the business of the Group during the financial year and the position  
of the Group at the end of the year. As the Group and its LOBs are still under development, key performance indicators (“KPIs”) 
are still being defined for a number of the LOBs. 
Results and dividends 
The results of the Group appear in detail on pages 37 to 40. The Directors will not recommend the payment of any dividends  
until they consider it prudent to do so, having regard to the need to retain sufficient funds to finance the development of the 
Group’s activities. 
Post-balance sheet events 
Details of events occurring after the year end are set out in Note 28. 
Going concern 
In considering the appropriate basis on which to prepare the financial statements, the Directors are required to consider whether 
the Group can continue in operational existence for the foreseeable future. At 30 September 2011, the Group had cash and cash 
equivalents of £7,312,203 and in addition, Note 28 to the financial statements sets out the details of the underwritten rights issue, 
to raise approximately £9.38 million (£8.78 million net of expenses) and an additional £1.8 million (net of expenses) raised through  
a placing of shares.  
The Directors are currently of the opinion that the Group’s forecasts and projections, taking account of reasonably possible 
changes in trading performance, together with the proposed rights issue in February 2012 and placing of shares, show the Group 
has adequate financial resources to continue to operate for a period of at least 12 months from the date of this report. For this 
reason, the going concern basis is considered appropriate for the preparation of financial statements. 
The Company is currently loss making and cash flow negative. The Board has taken and continues to take a number of actions to 
conserve the cash resources of the business whilst prioritising activity in those areas seen as most likely to secure revenues in the 
near term. The plan entails the implementation of identified reductions in development activities and further significant reductions  
in the operating cost base of the Group in the second half of calendar year 2012. Such actions could slow the Group’s development 
and have an adverse effect on its business in the longer term. If, as the Board anticipates, the business succeeds in generating 
material revenues, the Group will continue to invest in the commercialisation of its PDX reactor and atomising technology in order 
to grow the business. 
Payment policy 
It is the Group’s policy to agree payment terms individually with suppliers and abide by these terms subject to satisfactory 
performance of the relevant transaction. The Group and Company’s average credit payment period at 30 September 2011  
was 30 days (2010: 30 days). 
Research and Development 
During the year the Group has pursued an active research and development programme to progress its innovative technology and 
to strengthen the intellectual property portfolio. During the year £45,536 (2010: £100,840) of development costs were capitalised 
having satisfied all of the six specified criteria of IAS 38 “Intangible Assets”. 
Donations 
There were no charitable or political donations during the year (2010: £nil). 
    
31 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
Directors 
The Directors who held office during the whole of the year and up to the date of signing (unless otherwise stated) were as follows: 
Andrew J Quinn (Chairman and Non-Executive Director) 
Roland Pieper (Chief Executive Officer – resigned 14 December 2011) 
Donald J Bell (Chief Financial Officer – resigned 3 December 2010) 
Richard Webster (Chief Financial Officer – appointed 3 December 2010) 
Brian N C Sweeney (Non-Executive Director) 
Michael Ryan (Non-Executive Director – resigned 14 June 2011) 
Stuart Evans (Non-Executive Director – resigned 14 June 2011) 
Bernard Bulkin (Non-Executive Director – appointed 14 June 2011) 
Jeremy Pelczer (Non-Executive Director – appointed 14 June 2011, appointed interim Chief Executive Officer 14 December 2011) 
Andy Quinn, who retires by rotation, will be seeking re-election as a Director at the Annual General Meeting, as will be Jeremy 
Pelczer and Bernard Bulkin, who only hold office until the date of the Annual General Meeting.  
The interests of the Directors in the shares of the Group are set out in the Report of the Remuneration Committee on pages 32  
to 34.The Group has provided to all of its Directors limited indemnities in respect of defending claims against them and third  
party liabilities. 
Substantial shareholdings 
As at 16 January 2012 shareholdings of 3% or more of the issued share capital notified to the Group were: 
Ordinary Shares  Number holding %
M&G Investment Management 11,021,363 14.68
Mr John Morley 10,300,000 13.72
BlackRock 9,741,692 12.98
Capital Research & Management 4,757,900 6.34
Nicholas E C Barham 4,434,921 5.91
Scottish Widows 4,341,444 5.78
Disclosure of information to auditors 
Each of the Directors have confirmed that there is no relevant audit information of which the Company’s auditors are unaware; and 
that they have taken all the steps (such as making enquiries of other Directors and the auditors and any other steps required by the 
Directors’ duty to exercise due care, skill and diligence) that they ought to have taken in their duty as a Director in order to make 
themselves aware of any relevant audit information and to establish that the Company’s auditors are aware of that information. 
Auditors 
PricewaterhouseCoopers LLP have indicated their willingness to be reappointed as auditors of the Company and a resolution 
proposing their reappointment will be put to the Annual General Meeting. 
Richard Webster 
Company Secretary  
22 February 2012 
  REPORT OF THE REMUNERATION COMMITTEE 
 
32 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
The Remuneration Committee is comprised of the following Non-Executive Directors:  
Bernard Bulkin (Chair of the Remuneration Committee from July 2011)  
Jeremy Pelczer (from July 2011 to 14 December 2011) 
Brian Sweeney (Chair of the Remuneration Committee until July 2011) 
Andy Quinn 
The Remuneration Committee makes recommendations to the Board on the remuneration policy that applies to Executive Directors 
and senior employees and oversees the operation of the Group’s employee bonus plan and share option plans.  
Salaries and benefits 
The Company carries out regular reviews and benchmarking of salaries and benefits for all employees. 
A Bonus Plan operates for all employees at an appropriate level with regard to their role and responsibilities. The bonus is payable 
upon achievement of both corporate and personal objectives defined at the beginning of the financial year, provided that the 
Company has achieved a “threshold level” measured by share price and 12 months’ funding. The bonus payment is made up either 
of cash or, in the case of management level employees, cash and share options. The remuneration of Executive Directors is linked 
to delivery against both personal and corporate objectives and against the performance of the LOBs in relation to the LOB 
managers. The Bonus Plan is not open to the Non-Executive Directors. 
The Company also operates share option plans open to all employees subject to achieving award criteria. The share option plans  
are described in detail in Note 20 to the Financial Statements. Share options vest subject to meeting time and performance criteria 
which are linked to the achievement of certain share price targets. 
Directors’ benefits 
The annual salaries for Executive Directors are determined by the Remuneration Committee having regard to personal performance. 
Full-time Executive Directors have contracts of service that can be terminated by either party with a notice period not exceeding 
12 months.  
Salary 
£
Bonus 
£
Benefits  
£ 
2011  
Total  
£ 
2010 
Total 
£
Roland Pieper (resigned 14 December 2011) 90,000 – 5,569 95,569 143,500 
Richard Webster (appointed 3 December 2010) 183,333 – 584 183,917 –
Andrew J Quinn  60,000 – – 60,000 60,000 
Brian N C Sweeney  35,000 – – 35,000 30,000 
Jeremy Pelczer (appointed 14 June 2011) 14,492 – – 14,492 –
Bernard Bulkin (appointed 14 June 2011) 14,492 – – 14,492 –
Stuart Evans (resigned 14 June 2011) 21,149 – – 21,149 30,000 
Michael Ryan (resigned 14 June 2011) 17,534 – – 17,534 25,000 
Donald Bell (resigned 3 December 2010) 105,735 – 824 106,559 146,821
 541,735 – 6,977 548,712 435,321 
Amounts paid to third parties 
Salary 
£
Bonus 
£
Benefits  
£ 
2011  
Total  
£ 
2010 
Total 
£
Quantum Holdings in respect of Roland Pieper  180,000 – – 180,000 234,000 
Directors’ interests in shares 
The beneficial interests of Directors at the end of the year in the Ordinary Share capital of the Company were as follows: 
Number of shares held by: 
30 September 
2011 
30 September 
2010
Andrew J Quinn  
170,000 170,000 
Brian N C Sweeney  
195,450 190,000 
Bernard Bulkin 
1,500 –
Richard Webster  
5,000 – 
 
    
 
33 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
Directors’ interests in share options 
Details of options over the Company’s Ordinary Shares held by Directors under all approved and unapproved share option schemes 
(the “Share Option Plans”) are as follows: 
 
Options at  
30 September 
2010 
(or date of 
appointment) 
Options 
granted 
Options 
exercised
Options 
lapsed
Options at 
30 September 
2011
(or date of 
resignation)
Exercise  
price  
Date of 
grant
Exercise 
period
Andrew J Quinn  250,000   –  – – 250,000 212.5p  7 June 2005 Note 1
Brian N C Sweeney  100,000  –  – – 100,000 212.5p  7 June 2005 Note 1
Michael Ryan  100,000   – (100,000) – – 153p  14 December 2007 –
Stuart Evans  100,000   –  (100,000) – – 153p  14 December 2007 –
Donald Bell  67,500   –  (45,000) (22,500) – 214.5p  4 August 2008 –
Donald Bell  67,500   –  – (67,500) – 1p  4 August 2008 –
Donald Bell  38,849   –  – (38,849) – 1p  13 July 2009 –
Roland Pieper  1,227,740  – – – 1,227,740 95p  25 September 2009 Note 2,4
Roland Pieper  –  30,155 – – 30,155 186p 6 December 2010 Note 2,4
Richard Webster – 210,000 – – 210,000 389p 6 December 2010 Note 2
Quantum Holdings interests in share options 
Details of options over the Company’s Ordinary Shares held by Quantum Holdings Limited in respect of Roland Pieper under all 
approved and unapproved share option schemes (the “Share Option Plans”) are as follows: 
 
Options at  
30 September 
2010 
(or date of 
appointment) 
Options 
granted 
Options 
exercised
Options 
lapsed
Options at 
30 September 
2011
(or date of 
resignation)
Exercise  
price  
Date of 
grant
Exercise 
period
Quantum Holdings 
Limited 1,841,610  – (1,175,000) – 666,610 95p  25 September 2009 Note 3,4
Quantum Holdings 
Limited 
–   60,309  – – 60,309 186p 6 December 2010 Note 3,4
Note 1 
On 17 March 2005 the rules of the Share Option Plans were amended so that these options shall vest as to one third of the Shares 
on each of the first, second and third anniversaries of the date of the grant. 
Options granted are subject to an accelerated vesting provision whereby if, within three years of the date of grant, the Company’s 
share price increases by 25% from its value at the date of grant and remains at that value or a higher value for a period of 30 
consecutive days, the option shall vest in full on completion of that 30 day period. 
Options are not exercisable later than midnight on the day before the tenth anniversary of the date of the grant. 
Note 2 
On 28 August 2009 the Company adopted the Pursuit Dynamics plc 2009 Employees’ Share Option Plan to allow, at the discretion 
of the Board, any eligible employee to be granted EMI or non-EMI qualified options at an exercise price to be determined by the 
Board of the Company but not to be less than the nominal value of a share and to be subject to such time based and performance 
based conditions as the Board may determine, e.g. the achievement of certain share price targets.  
The Employees’ Share Option Plan also increased the number of options which may be granted over Ordinary Shares of 1p each  
in the capital of the Company which when aggregated with all other Ordinary Shares of 1p each in the capital of the Company 
placed under option or issued under any other share plan established for the benefit if employees or service providers and operated 
by the Company or Group in the preceding 10 year period from 10% of the Company’s ordinary issued share capital at any one time 
to 15%. 
Note 3 
On 28 August 2009 the Company also adopted the Pursuit Dynamics plc 2009 Service Provider Share Option Plan which permits 
the Company to grant share options to companies which provide services to the Company or Group via an employee or director  
of the service company. The Service Provider Plan incorporates all the provisions of the Pursuit Dynamics plc 2009 Employees’ 
Share Option Plan except that the provisions relating to EMI options are disregarded under the Service Provider Plan and options 
will be held by the service company and not the individual. 
    
 
34 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
REPORT OF THE REMUNERATION COMMITTEE CONTINUED 
Note 4 
The Share Option Plans provide that any vested options are accessible within 30 days of the cessation of employment, or if they 
cannot be exercised as a result of a close period, within 30 days of the end of such close period. As a result of the close period 
imposed prior to publication of the 2011 Annual Report and Accounts, which has been in effect since Roland Pieper’s cessation  
of employment, Roland Pieper’s and Quantum Holdings’ vested options only become exercisable during the 30 day period following 
the publication of the 2011 Annual Report and Accounts. 
At 30 September 2011 the market price of the Company’s shares was 175.0p and the range during the year was 160.5p to 700.0p. 
On behalf of the Board 
Bernard Bulkin 
Chair of the Remuneration Committee  
22 February 2012  STATEMENT OF DIRECTORS’ RESPONSIBILITIES 
 
35 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law  
and regulations. 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have 
prepared the Group financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by  
the European Union, and the Parent Company financial statements in accordance with United Kingdom Generally Accepted 
Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not 
approve the financial statements unless they are satisfied that these give a fair view of the state of affairs of the Group and  
the Company and of the profits or losses of the Group for that period. 
In preparing these financial statements, the Directors are required to: 
• select suitable accounting policies and then apply them consistently; 
• make judgements and accounting estimates that are reasonable and prudent; 
• state whether IFRSs as adopted by the European Union and applicable UK Accounting Standards have been followed, subject 
to any material departures disclosed and explained in the Group and Parent Company financial statements respectively; 
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will 
continue in business. 
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure 
that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the 
Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 
The Directors are responsible for the maintenance and integrity of the Company’s website. Legislation in the United Kingdom 
governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 
By order of the Board 
Richard Webster 
Company Secretary 
22 February 2012  INDEPENDENT AUDITORS’ REPORT (GROUP) 
TO THE MEMBERS OF PURSUIT DYNAMICS PLC 
 
36 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
We have audited the Group financial statements of Pursuit Dynamics plc for the year ended 30 September 2011 which comprise  
the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the 
Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity and the related notes. The financial reporting 
framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (“IFRSs”) as 
adopted by the European Union. 
Respective responsibilities of Directors and auditors 
As explained more fully in the Statement of Directors’ Responsibilities set out on page 35, the Directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and 
express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and 
Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. 
This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance with 
Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume 
responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save 
where expressly agreed by our prior consent in writing. 
Scope of the audit of the financial statements 
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes  
an assessment of: whether the accounting policies are appropriate to the Group’s circumstances and have been consistently 
applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Directors; and the overall 
presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to 
identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements 
or inconsistencies we consider the implications for our report. 
Opinion on financial statements  
In our opinion the Group financial statements:  
• give a true and fair view of the state of the Group’s affairs as at 30 September 2011 and of its loss and cash flows for the year 
then ended; 
• have been properly prepared in accordance with IFRSs as adopted by the European Union; and  
• have been prepared in accordance with the requirements of the Companies Act 2006. 
Opinion on other matter prescribed by the Companies Act 2006 
In our opinion the information given in the Directors’ Report for the financial year for which the Group financial statements are 
prepared is consistent with the Group financial statements. 
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if,  
in our opinion:  
• certain disclosures of Directors’ remuneration specified by law are not made; or  
• we have not received all the information and explanations we require for our audit.  
Other matter  
We have reported separately on the Parent Company financial statements of Pursuit Dynamics plc for the year ended 
30 September 2011. 
Stuart Newman (Senior Statutory Auditor) 
for and on behalf of PricewaterhouseCoopers LLP 
Chartered Accountants and Statutory Auditors 
Cambridge 
22 February 2012  CONSOLIDATED INCOME STATEMENT 
For the year ended 30 September 2011 
 
37 Pursuit Dynamics plc 
Annual Report and Accounts 2011  
 
 
Note
Year ended  
30 September 
2011 
£ 
Year ended
30 September 
2010
£
Revenue 5 490,382  128,019
Operating expenses (excluding non-cash operating expenses) (11,807,714) (7,292,795)
Operating loss before non-cash expenses (11,317,332) (7,164,776)
  
Depreciation of property, plant and equipment (182,061) (149,939)
Amortisation of intangible assets (262,609) (591,790)
Share option compensation charge (3,616,652) (1,213,509)
Total non-cash operating expenses (4,061,322) (1,955,238)
Total operating expenses 6 (15,869,036) (9,248,033)
Operating loss (15,378,654) (9,120,014)
Finance income 10 46,947 50,929
Finance costs 10 (3,185) – 
Loss before taxation (15,334,892) (9,069,085)
Income tax 11 – 387,703
Loss for the year attributable to owners of the Parent Company (15,334,892) (8,681,382)
 
Loss per share for loss attributable to the owners  
of the Parent Company during the year:  
Loss per 1 pence share – basic and fully diluted 12 21.30 12.89
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
For the year ended 30 September 2011 
 Year ended  
 30 September 
 2011 
 £ 
Year ended
30 September 
2010
£
Loss for the year attributable to owners of the parent (15,334,892) (8,681,382)
Other comprehensive income:  
Currency translation differences (65,665) 5,487
Total comprehensive income for the year (15,400,557) (8,675,895)
   CONSOLIDATED BALANCE SHEET 
As at 30 September 2011 
 
38 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
Note
2011 
£ 
2010
£
Non-current assets  
Property, plant and equipment 13 2,079,331 321,191
Intangible fixed assets 14 115,807 322,524
 2,195,138 643,715
Current assets  
Inventories 15 105,291 97,729
Trade and other receivables 16 875,496 607,265
Current income tax asset – 607,254
Short-term investments 17 – 5,000,000 
Cash and cash equivalents 17 7,312,203 4,972,844
 8,292,990 11,285,092
Trade and other payables 18 (2,251,654) (1,988,258)
Net current assets 6,041,336 9,296,834
Obligations under finance leases – due after more than one year 25 (24,879) –
Net assets 8,211,595 9,940,549
 
 
Equity  
Ordinary shares 19 750,632 699,931
Share premium account 55,624,325 45,620,075
Merger reserve 4,061,185 4,061,185
Foreign exchange reserve (126,419) (60,754)
Profit and loss account (52,098,128) (40,379,888)
Total equity attributable to the owners of the Parent Company 8,211,595 9,940,549
The notes on pages 41 to 62 are an integral part of these consolidated financial statements. 
The financial statements on pages 37 to 62 were approved by the Board of Directors on 22 February 2012 and have been signed on 
its behalf by: 
Richard Webster 
Director 
Registered number 
4175777
   CONSOLIDATED CASH FLOW STATEMENT 
For year ended 30 September 2011 
 
 
39 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
Note
Year ended  
30 September 
2011 
£ 
Year ended
30 September 
2010
£
Cash flows from operating activities   
Cash used in operations 22 (11,487,037) (5,951,182)
Taxation received 607,254 303,424
Bank interest paid (151) –
Interest element of finance lease payments (3,034) –
Net cash used in operating activities (10,882,968) (5,647,758)
Cash flows from investing activities  
Purchase of plant and machinery (1,940,576) (194,749)
Purchase of intangible assets (55,892) (109,944)
Proceeds from sale of plant and machinery 2,182  6,414 
Decrease/(increase) in short-term deposits with banks 5,000,000 (5,000,000)
Interest received 46,947 50,929 
Net cash inflow/(outflow)from investing activities 3,052,661 (5,247,350)
Cash flows from financing activities  
Proceeds of Ordinary Share issue 8,000,000 10,000,000
Issuance cost of shares (161,827) (304,017)
Proceeds of options exercised 2,400,664 500,790
Capital element of finance lease payments (3,881) – 
Net cash generated from financing activities 10,234,956 10,196,773
Net increase/(decrease) in cash and cash equivalents 2,404,649 (698,335)
Cash and cash equivalents at beginning of year 17 4,972,844 5,666,496
Exchange (losses)/gains (65,290) 4,683
Cash and cash equivalents at end of year 17 7,312,203 4,972,844
Net funds  
Short-term investments –  5,000,000 
Cash and cash equivalents 7,312,203 4,972,844
 7,312,203  9,972,844
  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
For the year ended 30 September 2011 
 
40 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
 
Ordinary 
Shares
£
Share 
premium
account
£
Foreign
exchange 
reserve
£
Merger  
reserve 
£ 
Profit  
and loss  
account 
£ 
Total
£
At 30 September 2009 650,581 35,256,853 (66,241) 4,061,185 (32,912,015) 6,990,363
Comprehensive income   
Loss for the financial year – – – –  (8,681,382) (8,681,382)
Other comprehensive income   
Currency exchange differences – – 5,487 –  –  5,487
Total comprehensive income – – 5,487 –  (8,681,382) (8,675,895)
Transactions with owners   
Issue of Ordinary Share capital 40,000 9,960,000 – –  –  10,000,000
Cost of issue of Ordinary Share capital – (304,017) – –  –  (304,017)
Exercise of share options 9,350 707,239 – –  –  716,589
Share option compensation charge – – – –  1,213,509 1,213,509
Total transactions with owners 49,350 10,363,222 – –  1,213,509 11,626,081
At 30 September 2010 699,931 45,620,075 (60,754) 4,061,185 (40,379,888) 9,940,549
Comprehensive income   
Loss for the financial year – – – –  15,334,892 15,334,892
Other comprehensive income   
Currency exchange differences – – (65,665) –  –  (65,665)
Total comprehensive income – – (65,665) –  (15,334,892) (15,400,557)
Transactions with owners   
Issue of Ordinary Share capital 32,000 7,968,000 – –  –  8,000,000
Cost of issue of Ordinary Share capital – (161,827) _ –  –  (161,827)
Exercise of share options 18,701 2,198,077 – –  –  2,216,778
Share option compensation charge – – – –  3,616,652 3,616,652
Total transactions with owners 50,701 10,004,250 – –  3,616,652 13,671,603
As at 30 September 2011 750,632 55,624,325 (126,419) 4,061,185 (52,098,128) 8,211,595
  NOTES TO THE GROUP FINANCIAL STATEMENTS 
 
41 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
1. General information 
Pursuit Dynamics plc (the “Company” and with its subsidiaries the “Group”) is a public limited company incorporated and domiciled 
in England & Wales, with its shares traded on AIM. The address of its registered office is Shackleton House, Kingfisher Way, 
Hinchingbrooke Business Park, Huntingdon, Cambridgeshire PE29 6HB. 
These consolidated financial statements (the Financial Statements) are presented in pounds Sterling because this is the currency  
of the primary economic environment in which the Group operates. Foreign operations are included in accordance with the policies 
set out in Note. 2. 
2. Accounting policies 
a) Basis of preparation 
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as 
adopted by the European Union (IFRSs as adopted by the EU), IFRIC interpretations and the Companies Act 2006 applicable  
to Companies reporting under IFRS. 
The consolidated financial statements have been prepared under the historical cost convention.  
The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires the use of estimates 
and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and of revenues 
and expenses during the reported period. Although these estimates are based on management’s best knowledge of the amount, 
event or action, actual results may ultimately differ from those estimates. 
b) Going concern  
In considering the appropriate basis on which to prepare the financial statements, the Directors are required to consider whether 
the Group can continue in operational existence for the foreseeable future. At 30 September 2011, the Group had cash and cash 
equivalents of £7,312,203 and in addition, Note 28 sets out the details of the underwritten rights issue, to raise approximately 
£9.38 million (£8.78 million net of expenses) and an additional £1.8 million (net of expenses) raised through a placing of shares. 
The Directors are currently of the opinion that the Group’s forecasts and projections, taking account of reasonably possible 
changes in trading performance, together with the proposed rights issue and placing of shares, show the Group has adequate 
financial resources to continue to operate for a period of at least 12 months from the date of this report. For this reason, the going 
concern basis is considered appropriate for the preparation of financial statements. 
The Company is currently loss making and cash flow negative. The Board has taken and continues to take a number of actions to 
conserve the cash resources of the business whilst prioritising activity in those areas seen as most likely to secure revenues in the 
near term. The plan entails the implementation of identified reductions in development activities and further significant reductions  
in the operating cost base of the Group in the second half of calendar year 2012. Such actions could slow the Group’s development 
and have an adverse effect on its business in the longer term. If, as the Board anticipates, the business succeeds in generating 
material revenues, the Group will continue to invest in the commercialisation of its PDX reactor and atomising technology in order 
to grow the business. 
c) Basis of consolidation 
In 2001 the Group structure was reorganised and a new holding Company established by way of a share exchange. This has been 
accounted for as a merger in the consolidated accounts, and all transactions within the Group have been eliminated. There has 
been no change to the basis set out as a result of the implementation of IFRS, as permitted by IFRS 1. 
The Group financial statements include and consolidate the financial statements of Pursuit Dynamics plc and each of its subsidiary 
undertakings. Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies 
generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting 
rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. 
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from  
the date that control ceases. 
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised 
losses are also eliminated but considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries have 
been changed where necessary to ensure consistency with the policies adopted by the Group. 
d) Investments in joint ventures 
The Group’s investment in its joint venture is reported in the financial statements using the proportionate consolidation method, 
whereby the Group’s share of the assets, liabilities, income and expenses of its joint venture is combined line by line with similar 
items in the Group’s financial statements or reported as separate line items within the Group’s financial statements. 
e) Standards and amendments effective for the first time in the year ended 30 September 2011 
Annual improvements 2009 
This is a series of amendments to 12 standards as part of the IASB programme on annual improvement. Published by the IASB in 
April 2009, these are effective for accounting periods beginning on or after 1 January 2010. These were endorsed by the EU on 
23 March 2010. These improvements have had no material impact on the results of the Group.   
 
42 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
2. Accounting policies continued 
f) Foreign currency translation 
Transactions denominated in currencies other than an entity’s functional currency are translated into the functional currency at 
spot rates. Foreign exchange gains and losses arising from the settlement of such transactions and from the translation at year-end 
exchange rates of monetary assets and liabilities denominated in foreign currencies, which are held at the year end, are taken to the 
income statement, except where financing of a foreign subsidiary through long-term loans is intended to be as permanent as equity. 
Such balances are treated as part of the net investment and any exchange differences are recorded in reserves. 
On consolidation, the assets and liabilities of the Group’s overseas operations are translated at exchange rates prevailing at the 
balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange differences 
arising on the translation of the Group’s overseas operations are recorded as a movement in reserves and are reported in the 
Consolidated Statement of Comprehensive Income. 
g) Property, plant and equipment 
Property, plant and equipment is stated at purchase cost less accumulated depreciation and any impairment in value. Assets under 
construction are not depreciated. Cost includes the original purchase price of the asset and the costs directly attributable to 
bringing the asset to its working condition for its intended use. 
Depreciation is calculated on a straight-line basis so as to write off the cost of property, plant and equipment less their estimated 
residual values, over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are: 
Leasehold improvements 15% 
Plant & machinery 10–33% 
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 
administrative expenses in the income statement. 
h) Intangible assets 
Goodwill 
Goodwill on acquisition is initially measured at cost, being the excess of the cost of the business combination over the acquirer’s 
interest in the net fair value of the identifiable assets, liabilities and contingent liabilities. Following initial recognition, goodwill is not 
amortised but is measured at cost less any accumulated impairment losses. Goodwill is reviewed for impairment annually or more 
frequently if events or changes in circumstances indicate that the carrying value may be impaired. Following the sale, in a prior year, 
of the trade of Pursuit Processing Equipment Ltd the goodwill on acquisition was written off to the income statement. 
Intellectual property rights 
Acquired trademarks and licences are shown at historical cost. Trademarks and licences have a finite useful life and are carried  
at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost of trademarks 
and licences over the Directors’ assessment of their estimated useful lives (10 years).  
Computer software 
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific 
software. These costs are amortised over their estimated useful lives (three years). Costs associated with developing or 
maintaining computer software programmes are recognised as an expense as incurred. 
i) Inventories 
Inventories are valued at the lower of cost and net realisable value on a first-in, first-out basis. Cost in the case of finished goods 
comprises direct materials, direct labour and attributable overheads. Where necessary, provision is made for obsolete, defective  
and slow-moving stocks. 
j) Trade receivables 
Trade receivables are originally measured at fair value and subsequently measured at amortised cost using the effective interest 
method, less provision for impairment. A provision for impairment is raised when there is objective evidence that the Group will  
not be able to collect all amounts due according to the original terms of the receivables. 
k) Cash and cash equivalents 
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other highly liquid investments with original 
maturities of three months or less. Bank overdrafts are shown within current liabilities on the balance sheet. Amounts with original 
maturity greater than three months are classified as short-term investments. 
l) Share capital 
Ordinary Shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown  
in equity as a deduction, net of tax, from the proceeds. 
m) Trade payables 
Trade payables are initially measured at fair value and subsequently at amortised cost using the effective interest method.   
 
43 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
2. Accounting policies continued 
n) Taxation 
Taxable profit or loss differs from that reported in the income statement because it excludes items of income or expense that are 
taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s asset or liability 
for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. 
Deferred income tax is calculated, using the liability method, on all temporary differences at the balance sheet date between the tax 
bases of assets and liabilities and their carrying amounts for financial reporting purposes. 
Deferred income tax assets and liabilities are recognised for all deductible temporary differences and carry-forward of unused tax 
losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and 
carry-forward of unused tax losses can be utilised. 
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the 
timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will 
not reverse in the foreseeable future. 
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is  
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. 
Deferred income tax assets and liabilities are measured at the tax rates that apply to the period when the asset is realised or the 
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.  
Income tax relating to items recognised directly in equity is recognised in equity and not in the income statement. 
o) Employee benefits 
Share-based compensation 
The Group operates a number of equity-settled, share-based compensation plans for employees (including Directors) in accordance 
with IFRS 2, whereby employees and Directors render services in exchange for shares or rights over shares. 
The cost of equity-settled transactions with employees is measured by reference to the fair value at the date at which they are 
granted. Fair value is determined using the Black-Scholes option pricing model, or the Monte Carlo option pricing model where 
there are market-based performance conditions. 
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the 
performance conditions are fulfilled, ending on the date which the relevant employees become fully entitled to the award (vesting 
date). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the 
extent to which the vesting period has expired and the number of awards that, in the opinion of the Directors, will ultimately vest. 
The cost is included in administrative expenses. 
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market 
condition. These are treated as vesting, irrespective of whether or not the market condition is satisfied, provided that all other 
performance conditions are satisfied.  
Termination benefits 
Termination benefits are payable when employment is terminated by the Group before the normal retirement date. The Group 
recognises termination benefits when it is demonstrably committed to terminating the employment of current employees according 
to a detailed formal plan without possibility of withdrawal. 
p) Revenue recognition 
The Group follows the principles of IAS 18, “Revenue Recognition”, in determining appropriate revenue recognition policies. 
Revenue associated with the sale of goods is recognised when all of the following conditions have been satisfied: 
• the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; 
• the Group does not retain either continuing managerial involvement to the degree usually associated with ownership  
of effective control over the goods sold; 
• the amount of revenue can be measured reliably; 
• it is probable that the economic benefits associated with the transaction will flow to the Group; and 
• the costs incurred or to be incurred in respect of the sale can be measured reliably. 
Revenue associated with the delivery of services is recognised when all of the following conditions have been satisfied: 
• the amount of revenue can be measured reliably; 
• it is probable that the economic benefits associated with the transition will flow into the Group; 
• the stage of completion of the transaction at the end of the reporting period can be measured reliably; and 
• the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.  
Revenue is shown net of Value Added Tax, returns, rebates and discounts and after eliminating sales within the Group. 
Revenue comprises the value of sales of PDX technology, either from capital sales or licences. In addition revenues include the 
share of benefits derived from the use of PDX technology, from support, maintenance and training, consulting contracts and  
sales of parts.   
 
44 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
2. Accounting policies continued 
p) Revenue recognition continued 
Revenues from the sales of PDX technology are recognised using a percentage-of-completion basis over the period from signing  
of the contract to customer acceptance. Where appropriate revenue is recognised on a contract milestone basis as a proxy for 
percentage-of-completion but where the Group considers there is insufficient evidence to support the recognition of revenue on 
milestones, such milestones are excluded and the percentage-of-completion is measured by monitoring progress using records of 
actual time incurred compared with the total estimated time required. 
Revenues from the share of benefits derived from the use of PDX technology are recognised when it is probable that the economic 
benefits associated with the transaction will flow to the Group and the amount of revenue can be reliably measured. Revenues are 
recognised when agreement is reached with the customer as to the amount and timing of the benefits derived from the use of  
PDX technology. 
Revenues from support, maintenance, training and consulting contracts are recognised as services are performed and it is probable 
that the economic benefits associated with the transaction will flow into the Group. Revenues from the sales of parts are 
recognised on delivery, where the significant risks and rewards of ownership have been transferred to the customer.  
q) Research and development costs 
Research costs are expensed as incurred. Internally generated expenditure arising from development (or from the development 
phase of an internal project) is capitalised if, and only if, it satisfies all of six specified criteria in IAS 38 “Intangible assets” 
(capitalised, costs are amortised over a period of three years). 
r) Leases 
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership 
to the lessee. All other leases are classified as operating leases. 
Assets held under finance leases are recognised as assets of the Group at fair value or, if lower, at the present value of minimum 
lease payments determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as 
a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to 
achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. 
Total rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease. 
s) Future pronouncements 
At the date of approval of these financial statements the following standards and interpretations which have not been applied in 
these financial statements were in issue but not yet effective: 
• Annual improvement 2010 
• Amendment to IFRS 7 ‘Financial instruments: Disclosures, on derecognition’ 
• Amendment to IAS 12 ‘Income taxes’, on deferred tax 
• Amendment to IAS 1 ‘Financial statement presentation’, regarding other comprehensive income 
• IFRS 10 ‘Consolidated financial statements’ 
• IFRS 11 ‘Joint arrangements’ 
• IFRS 12 ‘Disclosures of interest in other entities’ 
• IAS 27 (revised 2011) ‘Separate financial statements’ 
• IAS 28 (revised 2011) ‘Associates and joint ventures’ 
The Directors do not anticipate that the adoption of these standards and interpretations, where relevant, in future periods will have 
a material impact on the Group’s financial statements. 
    
 
45 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
3. Financial risk management 
The Group’s activities expose it to a variety of financial risks that include currency risk, interest rate risk, credit risk and liquidity risk. 
The responsibility for monitoring financial risk management has been delegated by the Board of Directors to the Audit Committee. 
a) Currency risk 
The Group operates mainly in the UK, Europe and the USA. There is exposure to the US Dollar, Euro and the Swiss Franc. During 
the financial year this exposure was negligible as the US and European operations and net assets are small, therefore no sensitivity 
analysis has been presented. The Board believes no hedging strategy is currently necessary. 
b) Interest rate risk 
The Group has substantial interest-bearing cash resources. Due to the level of current interest rates the Group’s finance income  
is not sensitive to changes in interest rates. However the Board have a policy of investing these resources in financial institutions 
where the institutions’ financial soundness is of greater importance than the interest rate on offer. The Board believes no hedging 
strategy is currently necessary. 
c) Credit risk 
Credit risk is managed on a Group basis and includes deposits with banks and credit exposures to customers, including outstanding 
receivables and committed transactions. Managing the risk of deposits in banks has been discussed above. As at 30 September 2011 
the Group has no significant credit exposure to customers. 
d) Liquidity risk 
The Board monitors expected future cash flows and bases its cash investment strategy on expected timing of future cash flows.  
Maturity of financial liabilities: 
The maturity profile of the carrying amount of the Group’s financial liabilities (excluding statutory liabilities) at 30 September 2011 was: 
 
2011
£
2010
£
In one year or less or on demand 2,107,323 1,912,037 
In more than one year but not more than two years 10,768 –
In more than two years but not more than five years 14,111 –
 2,132,202  1,912,037 
Due to the nature of the financial liabilities there is no significant difference between book value and fair value of financial assets 
and liabilities. 
e) Capital risk management 
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to 
provide returns for Shareholders and benefits for other stakeholders and to maintain an optimal capital structure. 
The Group uses its monthly management accounts to monitor the level of cash available to plan for any financing needs. The Group 
considers its funds to be Ordinary Shares. The Group has some long-term debt in the form of finance leases and is not subject to 
any external covenants. 
4. Critical accounting estimates and assumptions  
a) Income taxes 
Presently the Group has cumulative tax losses and since it has not recorded a taxable profit, has not recognised any deferred  
tax assets.  
b) Capitalisation of research and development costs 
The Group has capitalised certain development costs incurred in the year that meet the necessary criteria for the capitalisation of 
such costs. There is a degree of subjectivity in determining the point in time at which the criteria for capitalisation have been met. 
c) Share option charge 
For options with market-based performance conditions, it is necessary to estimate, at the date of grant, the length of time from the 
date of grant until the performance conditions are fulfilled. It is also necessary to form a judgement on the most appropriate period 
over which volatility should be calculated. 
    
 
46 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
5. Segmental information 
The Group’s operating segments are determined with reference to the information supplied to the Group’s Chief Operating 
Decision Maker in order for it to allocate the Group’s resources and monitor the performance of the Group. The Group considers 
the Chief Operating Decision Maker to be the Board of Directors. 
During the year the Group was organised on a worldwide basis in five business segments, Bioenergy, Brewing Food and Beverage, 
Public Health and Safety, Industrial Licensing and Waste Treatment. Industrial Licensing and Waste Treatment are new business 
segments. 
The segment results for the year ended 30 September 2011 are as follows: 
 
Bioenergy 
£ 
Brewing, Food 
& Beverage 
£ 
Public Health 
& Safety
£
Industrial 
Licensing
£
Waste 
Treatment
£
Central 
£ 
Total
£
Revenue from 
external customers 8,623  318,181 51,905 111,673 – –  490,382 
Operating expenses 
(excluding non-cash 
expenses) (1,029,511) (1,667,539) (1,636,850) (1,034,528) (441,699) (5,997,587) (11,807,714)
Depreciation of 
tangible fixed assets (66,782) (434) (507) (1,048) (246) (113,044) (182,061)
Amortisation of 
intangible fixed assets (33,654) (11,979) – – – (216,976) (262,609)
Share option 
compensation charge (608,069) (973,807) (238,015) (103,321) (68,881) (1,624,559) (3,616,652)
Operating loss (1,729,393) (2,335,578) (1,823,467) (1,027,224) (510,826) (7,952,166) (15,378,654)
Finance income – – – – – 46,947 46,947
Finance costs – – – – – (3,185) (3,185)
Loss before taxation (1,729,393) (2,335,578) (1,823,467) (1,027,224) (510,826) (7,908,404) (15,334,892)
Income tax credit – – –––– –
Loss for the year (1,729,393) (2,335,578) (1,823,467) (1,027,224) (510,826) (7,908,404) (15,334,892)
The segment results for the year ended 30 September 2010 are as follows: 
 
Bioenergy 
£ 
Brewing, Food 
& Beverage 
£ 
Public Health
 & Safety
£
Industrial 
Licensing
£
Waste 
Treatment
£
Central 
£ 
Total
£
Revenue from 
external customers –   51,299  30,009  46,711 – –   128,019 
Operating expenses 
(excluding non-cash 
expenses) (1,251,942)(1,036,505)(833,777) (217,906) – (3,952,665) (7,292,795)
Depreciation of  
tangible fixed assets (16,783) (19) (331) (186) – (132,620) (149,939)
Amortisation of  
intangible fixed assets –  _ – – – (591,790) (591,790)
Share option  
compensation charge (186,770) (26,645) (21,314) (15,641) – (963,139) (1,213,509)
Operating loss (1,455,495) (1,011,870) (825,413) (187,022) – (5,640,214) (9,120,014)
Finance income –  – – – – 50,929 50,929
Finance costs –  – – – – – –
Loss before taxation (1,455,495) (1,011,870) (825,413) (187,022) – (5,589,285) (9,069,085)
Income tax credit –  – – – – 387,703 387,703
Loss for the year (1,455,495) (1,011,870) (825,413) (187,022) – (5,201,582) (8,681,382)
In our 2009–2010 Annual Report, we included New Ventures as a Line of Business. We have now reclassified this as a business 
development function that passes those ventures identified as having tangible market potential on to our Lines of Business to take 
to market, costs associated with this function are included within central costs. 
    
 
47 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
5. Segmental information continued 
The segment assets and liabilities at 30 September 2011 and capital expenditure for the year then ended are as follows: 
 
Bioenergy 
£ 
Brewing, Food 
& Beverage
£
Public Health 
& Safety
£
Industrial 
Licensing
£
Waste 
Treatment 
£ 
Central
£
Total
£
Assets 1,492,768  461,289 780 955 476  8,531,860 10,488,128 
Liabilities 122,242  347,945 6,682 1,012 4,644  1,794,008 2,276,533 
Capital expenditure   
Property, plant and 
equipment 1,347,265  92,850  – – –  500,461 1,940.576 
Intangible assets 45,536  – – – –  10,356 – 
The segment assets and liabilities at 30 September 2010 and capital expenditure for the year then ended are as follows: 
 
Bioenergy 
£ 
Brewing, Food 
& Beverage
£
Public Health 
& Safety
£
Industrial 
Licensing
£
Waste 
Treatment 
£ 
Central
£
Total
£
Assets 216,341 57,838 1,832 2,283 – 11,650,513 11,928,807
Liabilities  101,434  304,403 – – –  1,582,4211,988,258
Capital expenditure   
Property, plant and 
equipment  138,505   701  2,163  2,468 –  50,912 194,749
Intangible assets  64,904   35,936 – – –   9,104  109,944 
Analysis by geographical area: 
 
Year ended 
30 September
2011
£
Year ended 
30 September
2010
£
Revenue 
UK 420,263 56,832
Europe 47,156 42,346
USA 21,257 14,716
Rest of the world 1,706 14,125
Total revenue 490,382 128,019
Analysis by revenue stream: 
 
Year ended 
30 September
2011
£
Year ended 
30 September
2010
£
Revenue 
Sale of PDX technology 312,123 –
Benefit Share income 8,623 1,352
Licence fees – –
Consultancy and support 169,636 126,667
Total revenue 490,382 128,019
Revenues of £375,574 (2010: £92,990) are derived from 3 (2010: 5) customers. They are attributable to the following segments: 
 
Year ended 
30 September
2011
£
Year ended 
30 September
2010
£
Brewing, Food & Beverage 303,230 32,526
Industrial Licensing 72,344 45,009
Public Health & Safety – 15,455
Total revenue 375,574 92,990
 
    
 
48 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
6. Operating expenses 
 
2011 
£ 
2010
£
Cost of goods sold 249,866 29,100
Research and development 3,963,972 3,283,026
Sales and marketing 4,985,503 1,865,748
Administrative expenses 6,669,695 4,070,159
 15,869,036  9,248,033
The following are items included in the operating loss: 
 
2011 
£ 
2010
£
Depreciation of property, plant and equipment:   
– owned 173,024  127,032
– held under finance leases 9,037   22,907 
Amortisation of intangible assets 262,609  591,790
Share option compensation charge 3,616,652  1,213,509
(Profit)/loss on disposal of plant and machinery (2,182) 1,759
Operating leases – land & buildings 423,010  292,623
 – plant & machinery 51,185  48,789
Foreign exchange differences (22,284) 4,985
7. Auditors’ remuneration 
 
2011 
£ 
2010
£
Audit services:  
– fees paid to the Company Auditor for the Audit of the Parent company and  
consolidated financial statements 40,000 38,250
  
Fees payable to the Company’s auditors and its associates for other services:  
– the audit of the Company’s subsidiaries pursuant to legislation 17,245 4,000
– the auditing of the accounts of associates of the Company pursuant to legislation 5,000 –
– other services relating to taxation 43,942 –
– services relating to corporate finance transactions entered into or proposed to be entered into  
by or on behalf of the Company or any of its associates 70,000 –
– all other services 21,500 29,999
 197,687 72,249
The services relating to corporate finance transactions related to due diligence on an aborted transaction. 
8. Employee benefit expense 
The staff costs for the employees shown in Note 9 (including Non-Executive Directors) were: 
 
2011 
£ 
2010
£
Staff costs  
Wages and salaries 4,601,240 2,518,566 
Social security costs 452,836 245,538
Pension costs 6,741 –
Share option compensation charge 3,616,652 1,213,509
 8,677,469 3,977,613 
 
    
 
49 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
9. Average number of people employed 
 
2011
Number
2010
Number
Average monthly number of people (including Executive Directors) employed 
Engineering, Research and Development 35 22
Sales, Marketing and Administration 32 21
 67 43
10. Finance income and costs 
 
2011
£
2010
£
Finance costs 
– interest payable on finance leases (3,034) –
– bank interest (151) –
 (3,185) –
Finance income 
– interest income on short-term bank deposits 46,879 42,731
– other interest income 68 8,198
 46,947 50,929
Net finance income 43,762 50,929
11. Income tax 
Tax credit 
 
Year ended 
30 September
2011
£
Year ended 
30 September
2010
£
United Kingdom research and development tax credit at 14% (2010: 14%) 
Current year – 330,554
Under/(over) provision in respect of prior years – 57,149
 – 387,703
 
 
Year ended 
30 September
2011
£
Year ended 
30 September
2010
£
Loss on ordinary activities before tax (15,334,892) (9,069,085)
Loss on ordinary activities multiplied by the United Kingdom standard rate for 
Corporation Tax of 27% (2010: R&D tax credits of 14%) 4,140,421 1,269,672
Effects of: 
– difference between depreciation and capital allowances (107,740) (23,696)
– expenses not deductible for tax purposes (78,485) (1,273)
– carry forward losses (3,371,010) (903,626)
– other timing differences (583,186) (17,500)
  
Utilisation of losses brought forward – 6,977 
Under/(over) provision in respect of prior years – 57,149
 – 387,703
 
    
 
50 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
12. Loss per share 
Loss per Ordinary Share (basic and fully diluted) 
Basic loss per share is calculated by dividing the loss attributable to Ordinary Shareholders by the weighted average number of 
shares in issue during the year. For fully diluted loss per share, the weighted average number of Ordinary Shares in issue is adjusted 
to assume conversion of dilutive potential Ordinary Shares. The Group’s potentially dilutive securities consist of share options and 
performance shares. As the Group is loss-making, none of the potentially dilutive securities are currently dilutive.  
For basic and diluted loss per share, the weighted average numbers of shares used in the calculations are set out below: 
2011 2010 
Loss
Weighted 
average 
number of 
shares Loss 
Weighted 
average
number of 
shares
Loss attributable to the owners of the parent company   
– from continuing operations 15,334,892 8,681,382 
 15,334,892 71,987,306 8,681,382 67,361,963
 
 
2011 
pence 
2010
pence
Basic loss per share 21.30 12.89
Diluted loss per share 21.30 12.89
13. Property, plant and equipment 
 
Leasehold 
improvements
£
Plant & 
machinery 
£ 
Assets under 
construction 
£ 
Total
£
Cost   
At 1 October 2009 236,320 900,913 – 1,137,233
Additions –59,553  135,196  194,749
Exchange adjustments 60 1,400 – 1,460
Disposals –(82,781)–  (82,781)
At 30 September 2010 236,380 879,085  135,196  1,250,661
Additions –449,119 1,491,457 1,940,576
Exchange adjustments 30 542 – 572
Transfers 802,489  (802,489) –
Disposals –(18,018)– (18,018)
At 30 September 2011 236,410 2,113,217 824,164 3,173,791
Accumulated depreciation   
At 1 October 2009 117,703 735,780 – 853,483
Charge for the year 35,472 114,467 –  149,939
Exchange adjustments 25 631 –  656
Disposals –(74,608)– (74,608)
At 30 September 2010 153,200 776,270 –  929,470
Charge for the year 35,459 146,602 –  182,061
Exchange adjustments 32 915 – 947
Disposals – (18,018)– (18,018)
At 30 September 2011 188,691 905,769 – 1,094,460
   
Net book value   
At 30 September 2009 118,617 165,133 – 283,750
At 30 September 2010 83,180 102,815 135,196 321,191
At 30 September 2011 47,719 1,207,448 824,164 2,079,331
The net book value of the property, plant and equipment of the Group at 30 September 2011 includes £52,913 (2010: £nil) in 
respect of plant and machinery held under finance leases. The depreciation charge for the year ended 30 September 2011 in respect 
of assets held under finance leases was £9,037 (2010: £22,907). 
Depreciation expense of £182,061 (2010: £149,939) has been charged to operating expenses in the current year. 
The Group had no capital commitments at 30 September 2011 (2010: £nil).   
 
51 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
14. Intangible fixed assets 
 
Intellectual
property 
rights
£
Capitalised
development 
costs
£
Purchased 
goodwill 
£ 
Software
£
Total
£
Cost  
At 30 September 2009 5,570,593 – 14,917 107,510 5,693,020
Additions –  100,840 –   9,104 109,944
Disposals – – – – –
At 30 September 2010 5,570,593 100,840  14,917  116,614 5,802,964
Additions – 45,536–  10,35655,892
At 30 September 2011 5,570,593 146,376  14,917  126,970 5,858,856
Accumulated amortisation  
At 30 September 2009 4,808,447 – 14,917  65,286 4,888,650
Charge for the year 557,064 – –   34,726 591,790
At 30 September 2010 5,365,511 – 14,917 100,012 5,480,440
Charge for the year 205,082 45,633 –  11,894262,609
At 30 September 2011 5,570,593 45,633 14,917 111,906 5,743,049
Net book value  
At 30 September 2009 762,146 – – 42,224 804,370
At 30 September 2010 205,082 100,840 –  16,602 322,524
At 30 September 2011 – 100,743 –  15,064 115,807
15. Inventories 
 
2011
£
2010
£
Work in progress 11,710 10,284
Finished goods 93,581 87,445
 105,291 97,729
The cost of inventories is recognised as an expense in cost of sales. 
    
 
52 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
16. Trade and other receivables 
The fair values of trade and receivables are as follows: 
 
2011 
£ 
2010
£
Trade receivables 369,936 13,362
Other receivables 321,767 441,852
Prepayments and accrued income 183,793 152,051
 875,496  607,265 
Included in other receivables is an amount of £9,900 (2010: £nil) due from Quantum Holdings Limited. 
Trade receivables are shown net of provisions for doubtful debts of £nil (2010: £30,250). 
Trade receivables that are less than six months past due are not considered impaired. As of 30 September 2011, trade receivables 
of £1,555 (2010: £1,884) were past due but not impaired. 
The ageing analysis of these trade receivables is as follows: 
 
2011 
£ 
2010
£
Three to six months 1,555  1,884 
Over six months –  – 
 1,555   1,884 
As of 30 September 2011, trade receivables of £nil (2010: £30,250) were impaired and provided for. The amount of the provision 
was £nil as of 30 September 2011 (2010: £30,250). 
The ageing of these receivables is as follows: 
 
2011 
£ 
2010
£
Three to six months –  – 
Over six months –  30,250 
 –   30,250 
As of 30 September 2011, there were receivables less than three months past due of £nil (2010: £nil) that were considered impaired 
and provided for. 
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies: 
 
2011 
£ 
2010
£
Pounds Sterling 822,457   598,264 
Euro 1,706  – 
Swiss Francs 26,744 –
US Dollar 24,589  9,001 
 875,496   607,265 
Movements on the Group provision for impairment of trade receivables are as follows: 
 
2011 
£ 
2010
£
At 1 October 2010  30,250   30,250 
Receivables written off during the year (30,250) –
At 30 September 2011 –   30,250 
Trade receivables include £313,074 (2010: £9,103) from two (2010: 2) customers. Other receivables includes £237,002 
(2010: £417,882 in relation to amounts owed by three (2010: 3) parties. 
The other classes within trade and other receivables do not contain impaired assets. 
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. 
The Group does not hold any collateral as security. 
    
 
53 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
17.  Net funds 
 
2011
£
2010
£
Short-term investments – 5,000,000 
Cash and cash equivalents 7,312,203 4,972,844
 7,312,203 9,972,844
18. Trade and other payables 
 
2011
£
2010
£
Trade payables 740,101 648,614
Other payables 20,946 1,712
Taxation and social security 144,331 76,221
Finance lease obligations 8,990 –
Accruals and deferred income 1,337,286 1,261,711
 2,251,654 1,988,258
19. Share capital and options 
Called up share capital 
 
2011
£
2010
£
Authorised 
100,000,000 Ordinary Shares of 1 pence each 1,000,000 1,000,000
Allotted, called up and fully paid 
75,063,263 (2010: 69,993,145) Ordinary Shares of 1 pence each 750,632 699,931
On the 28 April 2011 3,200,000 Ordinary Shares of 1 pence were issued at a price of £2.50 with costs of £161,827 associated with 
the share issue. 
During the year 1,870,118 (2010: 935,027) options over 1 pence Ordinary Shares were exercised raising £2,216,778 
(2010: £716,589). 
 
2011
£
2010
£
Allotted, called up and fully paid 
As at 1 October 2010 699,931 650,581
Issued during the year 50,701 49,350
As at 30 September 2011 750,632 699,931
 
    
 
54 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
20. Share-based payments 
The Group has four share option schemes: 
1. The ‘Share Option Plan’ 
2. The Long Term Incentive Plan  
3. The 2009 Employees’ Share Option Plan 
4. The 2009 Service Provider Share Option Plan 
1. The ‘Share Option Plan’ 
The Group has issued share options over 1 pence Ordinary Shares under an unapproved share option scheme (the “Share Option 
Plan”) adopted by the Group on 22 March 2001. 
On 17 March 2005 the rules of the Share Option Plan were amended so that these options shall vest as to one third of the shares 
on each of the first, second and third anniversaries of the date of the grant. 
Options granted are subject to an accelerated vesting provision whereby if, within three years of the date of grant, the Company’s 
share price increases by 25% from its value at the date of grant and remains at that value or a higher value for a period of 30 
consecutive days, the option shall vest in full on completion of that 30 day period. 
Options are not exercisable later than midnight on the day before the tenth anniversary of the date of the grant. 
On 27 June 2008 the rules of the Share Option Plan were amended: 
• to reflect current legislation; 
• to give the Company the discretion in the case of leavers to offer a cash settlement for any gain made by the employee in their 
shares rather than to issue shares. This applies only in the case of share options which do not qualify as EMI options and this 
option is unlikely to be utilised in the short-term; 
• in the case of new options, changes to certain leaver provisions to require options to be exercised within 30 days after 
cessation of employment in certain cases; 
• options may be satisfied via existing shares or newly issued shares; and 
• a US sub plan was adopted for the benefit of United States employees. 
Options granted after 27 June 2008 do not benefit from the accelerated vesting provision referred to above. Options are not 
exercisable later than midnight on the day before the tenth anniversary of date of grant. 
Options were valued using the Black-Scholes option pricing model. No options have been granted during the year under this plan 
(2010: nil). 
 2011 2010 
Number
Weighted 
average 
exercise price Number 
Weighted 
average 
exercise price
Number of options outstanding at 1 October 1,600,736 £1.5581 2,827,965 £1.3673
Granted during the period –– – –
Exercised during the year (573,186) £1.2732 (930,027) £0.7539
Forfeited during the year (22,500) £2.1450 (297,202) £2.2595
Number of options outstanding at 30 September 1,005,050
 
£1.6149 1,600,736 £1.5581
Exercisable at 30 September 960,560 £1.6491 1,440,069 £1.5756
 
    
 
55 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
20. Share-based payments continued 
2. The Long Term Incentive Plan  
The Group introduced a Long Term Incentive Plan (“LTIP”) on 27 June 2008 which forms a schedule to the Share Option Plan.  
The purpose of the LTIP is to incentivise and reward senior and key employees. The Group also adopted a sub plan for the benefit 
of employees of the Group employed in the United States. 
The LTIP allows options to be granted with an exercise price equal to the nominal value per share. Options will vest subject to  
the Company achieving a share price based performance target. The options have a 4 year vesting period with 50% of the options 
vesting at year 3 and 50% vesting at year 4 with accelerated vesting at the end of year 3 if the performance condition relating  
to the latter 50% is satisfied at the end of year 3. 
Options are not exercisable later than midnight on the day before the tenth anniversary of the date of grant. 
Options were valued using a Monte Carlo simulation pricing model. No options have been granted during the year (2010: nil). 
 2011 2010 
Number
Weighted 
average 
exercise price Number
Weighted 
average 
exercise price
Number of options outstanding at 1 October 297,805 £0.01 297,805 £0.01
Granted during the period – ––
Exercised during the year –– ––
Forfeited during the year (106,349) £0.01 ––
Number of options outstanding at 30 September 191,456 £0.01 297,805 £0.01
Exercisable at 30 September –– ––
 
    
 
56 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
20. Share-based payments continued 
3. The 2009 Employees’ Share Option Plan 
On 28 August 2009 the Company adopted the Pursuit Dynamics plc 2009 Employees’ Share Option Plan to allow, at the discretion 
of the Board, any eligible employee to be granted EMI or non-EMI qualified options at an exercise price to be determined by the 
Board but not to be less than the nominal value of a share and will vest subject to such time based and share price performance 
based conditions as the Board may determine.  
The Employees’ Share Option Plan also increased the number of options which may be granted over Ordinary Shares of 1 pence 
each in the capital of the Company which when aggregated with all other Ordinary Shares of 1 pence each in the capital of the 
Company placed under option or issued under any other share plan established for the benefit of its employees or service providers 
and operated by the Company or Group in the preceding 10 year period from 10% of the Company’s Ordinary issued share capital at 
any one time to 15%. 
Options are not exercisable later than midnight on the day before the tenth anniversary of the date of grant. 
Options were fair valued using the Black-Scholes option pricing model, or where there are market based performance conditions,  
a Monte Carlo simulation pricing model. 
The expected volatility is based on the historic volatility during a period of one year preceding the date of the grant and reflects the 
assumption that historic volatility is indicative of future trends, which may not necessarily be the actual outcome. The period of one 
year reflects the significant management changes that occurred in late 2009. The expected life of the option was assumed to be 
the vesting period based on historical exercising or in the case of options with performance conditions, where the conditions had 
not already been met, the expected life was assumed between one and two years based on publicly available share price projections 
and is not necessarily indicative of exercise patterns that may occur. Performance based conditions relate to the achievement of 
share price based performance targets. 
The risk free rate is the yield on zero coupon UK government bonds of a term consistent with the assumed option life. 
The significant inputs into the pricing models and other information on the number of share options concerning the 2009 
Employees’ Share Option Plan are provided in the following tables:  
 2011 2010
Share price at date of grant (weighted average) £4.7381 £3.2679
Exercise price (weighted average) £2.7938 £2.5444
Number of employees 25 18
Vesting period (years) 0–2 0–3
Expected volatility 58.47% 59.77%
Option life (years) 10 10
Expected life (years) 0–5 0–3
Risk free rate (weighted average) 0.76% 0.81%
Expected dividend yield Nil Nil
Possibility of ceasing employment before vesting 0–21% 1–22%
Expectations of meeting performance criteria 100% 100%
Fair value per option (weighted average) £2.7288 £1.2084
 
 2011 2010 
Number
Weighted 
average 
exercise price Number 
Weighted 
average 
exercise price
Number of options outstanding at 1 October 2,474,310 £1.7539 1,227,740 £0.9500
Granted during the period – performance conditions 570,000 £2.7938 1,236,000 £2.4699
Granted during the period – non performance conditions 318,558 £2.7938 15,570 £2.4699
Exercised during the period (121,932) £2.277 (5,000) £2.2075
Forfeited during the period (12,868) £3.1599 – –
Number of options outstanding at 30 September 3,228,068 £2.0148 2,474,310 £1.7539
Number of options exercisable at 30 September 2,534,307 £1.8368 421,418 £0.9849
 
    
 
57 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
20. Share-based payments continued 
4. The 2009 Service Provider Share Option Plan 
On 28 August 2009 the Company also adopted the Pursuit Dynamics plc 2009 Service Provider Share Option Plan which permits 
the Company to grant share options to companies which provide services to the Company or Group via an employee or director of 
the service company. The Service Provider Plan incorporates all the provisions of the Pursuit Dynamics plc 2009 Employees’ Share 
Option Plan except that the provisions relating to EMI options are disregarded under the Service Provider Plan and options will be 
held by the service company and not the individual. 
Options are not exercisable later than midnight on the day before the tenth anniversary of the date of grant. 
Options were fair valued using the Black-Scholes option pricing model or, where there are market based performance conditions,  
a Monte Carlo simulation pricing model. 
The expected volatility is based on the historic volatility during a period of one year preceding the date of the grant and reflects  
the assumption that historic volatility is indicative of future trends, which may not necessarily be the actual outcome. The period  
of one year reflects the significant management changes that occurred in late 2009. The expected life of the option was assumed 
to be the vesting period based on historical exercising or in the case of options with performance conditions the expected life was 
assumed between one and two years based on publicly available share price projections and is not necessarily indicative of exercise 
patterns that may occur.  
The risk free rate is the yield on zero coupon UK government bonds of a term consistent with the assumed option life. 
The significant inputs into the pricing models and other information on the number of share options concerning the 2009 
Employee’s Share Option Plan are provided in the following tables:  
 
2011 2010
Share price at date of grant (weighted average) £6.30 –
Exercise price (weighted average) £1.86 –
Number of service providers 1 –
Vesting period (years) 0–2 –
Expected volatility 59.57% –
Option life (years) 10 –
Expected life (years) 0–2 –
Risk free rate (weighted average) 0.71% –
Expected dividend yield Nil –
Possibility of ceasing employment before vesting 0–21% –
Expectations of meeting performance criteria 100% –
Fair value per option (weighted average) £4.4883 –
 
 2011 2010 
Number
Weighted 
average 
exercise price Number
Weighted 
average 
exercise price
Number of options outstanding at 1 October 1,841,610 £0.9500 1,841,610 £0.9500
Granted during the period – performance conditions –– ––
Granted during the period – non performance conditions 60,309 £1.8600 ––
Exercised during the period (1,175,000) £0.9500 ––
Forfeited during the period –– ––
Number of options outstanding at 30 September 726,919 £1.0255 1,841,610 £0.9500
Number of options exercisable at 30 September 441,114 £0.9915 613,845 £0.9500
 
    
 
58 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
20. Share-based payments continued 
5. Summary of Share Option Plans 
A reconciliation of option movements for the share option plans over the year to 30 September 2011 is shown below: 
2011 2010 
 
Number
Weighted 
average 
exercise price Number 
Weighted
average
exercise price
Outstanding at 1 October 6,214,461 £1.3817 6,195,120 £1.0953
Granted 948,867 £2.7344 1,251,570 £2.5444
Exercised (1,870,118) £1.1854 (935,027) £0.7616
Forfeited (141,717) £0.6350 (297,202) £2.2595
Outstanding at 30 September 5,151,493 £1.7226 6,214,461 £1.3817
Exercisable at 30 September 3,941,981 £1.6962 2,475,333 £1.3199
Total options existing at 30 September 2011 over 1 pence Ordinary Shares in the Company are summarised below: 
Date of grant 
Number of 
options 
Exercise price
pence
July 2004  75,000  120.5p
July 2004  75,000  111p
September 2004  50,000  131.5p
February 2005  29,333  175.5p
June 2005  350,000  212.5p
July 2005  12,000  195p
January 2006  16,667  169p
June 2006  10,002  95p
November 2006  80,000  77.5p
December 2006  50,000  96.5p
June 2007  38,000  306.25p
December 2007  41,250  153p
July 2008  73,334  229.5p
July 2008  12,666  1p
July 2008  4,812  1p
December 2008  44,207  60.5p
December 2008  20,000  1p
January 2009 55,556 65p
January 2009 62,500 1p
July 2009  6,316  72p
July 2009  91,478  1p
September 2009 1,227,740 95p
September 2009 666,610 95p
December 2009 9,631 144.50p
July 2010 360,000 167.50p
July 2010 25,000 220.75p
September 2010 297,000 386.75p
September 2010 60,000 234.75p
September 2010 480,000 224.p
October 2010 380,000 229p
December 2010 177,391 186p
December 2010 210,000 389p
June 2011 60,000 500p
  5,151,493  
The weighted average remaining contractual life on share options was 7.70 years (2010: 8.37 years). 
On 24 October 2011 the Board amended the Pursuit Dynamics plc 2009 Employees’ Share Option Plan to remove the rule 
applicable only to US employees that no option may be exercised later than 2.5 calendar months after the end of the taxable year 
(as defined within the plan rules) in which the option first becomes exercisable.  
The total expense recognised during the year is set out in Note 8.   
 
59 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
21.  Deferred income tax 
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries and joint ventures. The Directors have 
determined that, as earnings are continually reinvested by the Group, undistributed earnings of the subsidiaries and joint ventures 
will not be distributed in the foreseeable future. 
Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle 
the balances net. No balances have been offset in the current or previous years. 
Unrecognised deferred tax assets 
 
2011
£
2010
£
Tax losses 13,583,726 10,204,032
Decelerated capital allowances 720,295 672,698
Other timing differences 696,996 2,209,586
At 30 September  15,001,017 13,086,316
Deferred tax assets have not been recognised in respect of tax losses because there is insufficient probability that they will be 
recoverable in the foreseeable future. 
A number of changes to the UK corporation tax system were announced in the March 2011 Budget Statement. Certain of these tax 
changes were substantively enacted in the Finance Act 2011 in July 2011. The impact of this has been reflected in the unrecognised 
potential deferred tax asset. 
Certain other changes are expected to be enacted in future Finance Acts, including further reductions in the main rate of 
corporation tax by 1% per annum to 23% by April 2014. As at 30 September 2011, there is an unrecognised deferred tax asset of 
£15,001,017. If these changes were applied to this the impact would be to reduce the potential deferred tax asset by £2,222,000. 
22. Cash used in operations 
 
2011
£
2010
£
Loss before taxation (15,334,892) (9,069,085)
Adjustments for: 
– depreciation of tangible assets 182,061 149,939
– amortisation of intangible fixed assets 262,609 591,790
– (loss)/profit on disposal of fixed assets (2,182) 1,759
– share option compensation charge 3,616,652 1,213,509
– finance expense 3,185 –
– finance income (46,947) (50,929)
Changes in working capital: 
– inventories (7,562) (25,942)
– trade and other receivables (452,117) 30,091
– trade and other payables 292,156 1,207,686
Cash used from operations (11,487,037) (5,951,182)
23. Operating lease commitments 
The Group leases premises under non-cancellable operating lease agreements. The lease terms are between 5 and 10 years, and  
the majority of lease agreements are renewable at the end of the lease period at market rate. The Group also leases motor vehicles, 
over a three-year term. The Group may terminate these agreements subject to a termination fee. The lease expenditure is charged 
to the income statement during the year. 
At 30 September the future aggregate minimum lease payments under non-cancellable operating leases are as follows: 
 
2011 2010 
 
Land & 
buildings Other 
Land & 
buildings Other
Less than 1 year 381,991 – 253,035 6,208
Between 2 and 5 years 1,101,734 – 910,000 –
After 5 years 113,750 – 341,250 – 
 1,597,475 – 1,504,285 6,208  
 
60 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
24. Joint ventures 
The Group’s interests in its joint venture are reported in the consolidated financial statements using the proportionate consolidation 
method. 
The Group owns a 60% share of NDX Solutions Limited, a company incorporated in England & Wales whose principal activity is  
the sale of process technology. The following amounts represent the Group’s 60% share of income and expenses and assets and 
liabilities of NDX Solutions Limited. 
Income statement 
 
2011 
£ 
2010
£
Revenue 23,993 –
Expenses (35,825)
Loss before tax (11,832) –
Tax – –
Share of post-tax results of joint ventures (11,832) –
Operating profit is after allocating £20,048 (2010: £nil) of costs incurred by Group. 
Balance sheet 
 
2011 
£ 
2010
£
Non-current assets 21,017 –
Current assets 30,357 –
Current liabilities (33,206) –
Non-current liabilities – –
Net assets 18,168 –
The Group’s joint venture does not have any contingent liabilities or commitments. 
25. Obligations under finance leases 
 
2011 
£ 
2010
£
Amounts payable under finance leases:  
Within one year 8,990 –
In more than one year but not more than two years 10,768 –
In more than two years but not more than five years 14,111 –
 33,869 –  
 
61 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
26. Related party transactions 
No transactions have been entered into with related parties during the period under review. 
a) Directors 
 
2011
£
2010
£
Aggregate emoluments 548,712 435,321
  584,712 435,321
Amounts paid to third parties 
 
2011
£
2010
£
Quantum Holdings in respect of Roland Pieper 180,000 234,000
 180,000 234,000
Highest paid Director 
 
2011
£
2010
£
Aggregate emoluments 183,917 146,821
 183,917 146,821
During the year aggregate gains of £518,539 (2010: £nil) were made by Directors and £2,373,790 (2010: £nil) by Quantum Holdings 
Limited on the exercise of share options. 
During the year the highest paid Director made gains of £nil (2010: £nil) on the exercise of share options. 
b) Key management compensation 
 
2011
£
2010
£
Salaries and other short-term employee benefits 548,712 435,321
Amounts paid to Quantum Holdings in respect of Roland Pieper 180,000 234,000
Share option compensation charge 822,590 356,286
 1,551,302 1,025,607
Key management are the persons having responsibility for planning, directing and controlling the activities of the Group, directly or 
indirectly; these are regarded as the Executive and Non-Executive Directors. 
    
 
62 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 
27. List of principal undertakings 
The Group’s principal subsidiaries are as follows: 
Principal subsidiaries 
Name of undertaking 
Country of 
incorporation
Nature of 
business
Proportion of  
nominal value of  
shares held by  
Parent Company 
Proportion of 
nominal value of 
shares held by Group
Pursuit Marine Drive Limited England and Wales Development and 
sale of process 
technology
100% 100%
Pursuit Dynamics, Inc. Delaware, USA Sale of process 
technology
100% 100%
Pursuit Processing Equipment Limited England and Wales Sale of process 
technology
100% 100%
PDX Businessgroup AG Switzerland Holding company 100% 100%
PDX Technologies AG Switzerland Research & 
Development 
company
0% 100%
PDX Management AG Switzerland Provision of Group 
services
0% 100%
PDX Public Health and Safety AG Switzerland Sales & Marketing 
company
0% 100%
BFX Solutions AG Switzerland Sales & Marketing 
company
0% 100%
DDX Solutions AG Switzerland Sales & Marketing 
company
0% 100%
Joint venture undertakings 
Name of undertaking 
Country of 
incorporation
Nature of 
business
Proportion of  
nominal value of  
shares held by  
Parent Company 
Proportion of 
nominal value of 
shares held by Group
NDX Solutions Limited England and Wales Sale of process 
technology
– 60%
The Group’s joint venture was accounted for using the proportionate consolidation method. All the subsidiaries of the Group have 
been consolidated. 
28. Post-balance sheet events 
On 15 December 2011, the Company announced its intention to raise approximately £8.78 million net of expenses by way of a 1 for 8 
rights issue, with 9,382,908 shares being issued at £1 per share. The prospectus for the rights issue, which has been underwritten 
by institutional investors, was issued on 22 February 2012. In addition the Company is raising an additional £1.8 million (net of 
expenses) through a placing of 1,800,000 New PDX Shares at 100 pence per share. The fundraising will raise approximately 
£11.2 million (£10.6 million net of expenses).  INDEPENDENT AUDITORS’ REPORT (PARENT COMPANY) 
TO THE MEMBERS OF PURSUIT DYNAMICS PLC 
 
63 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
We have audited the Parent Company financial statements of Pursuit Dynamics plc for the year ended 30 September 2011  
which comprise the Company Balance Sheet and the related notes. The financial reporting framework that has been applied  
in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted  
Accounting Practice). 
Respective responsibilities of Directors and auditors 
As explained more fully in the Statement of Directors’ Responsibilities set out on page 35, the Directors are responsible for the 
preparation of the Parent Company financial statements and for being satisfied that they give a true and fair view. Our 
responsibility is to audit the Parent Company financial statements in accordance with applicable law and International Standards on 
Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. 
This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance with 
Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume 
responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save 
where expressly agreed by our prior consent in writing. 
Scope of the audit of the financial statements 
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes  
an assessment of: whether the accounting policies are appropriate to the Parent Company’s circumstances and have been 
consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Directors;  
and the overall presentation of the financial statements. 
Opinion on financial statements 
In our opinion the Parent Company financial statements:  
• give a true and fair view of the state of the Company’s affairs as at 30 September 2011; 
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and  
• have been prepared in accordance with the requirements of the Companies Act 2006. 
Opinion on other matter prescribed by the Companies Act 2006 
In our opinion the information given in the Directors’ Report for the financial year for which the Parent Company financial 
statements are prepared is consistent with the Parent Company financial statements. 
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if,  
in our opinion:  
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been 
received from branches not visited by us; or  
• the Parent Company financial statements are not in agreement with the accounting records and returns; or  
• certain disclosures of Directors’ remuneration specified by law are not made; or  
• we have not received all the information and explanations we require for our audit. 
Other matter  
We have reported separately on the Group financial statements of Pursuit Dynamics plc for the year ended 30 September 2011.  
Stuart Newman (Senior Statutory Auditor) 
for and on behalf of PricewaterhouseCoopers LLP 
Chartered Accountants and Statutory Auditors 
Cambridge 
22 February 2012 
   COMPANY BALANCE SHEET 
 
64 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 Note
2011 
£ 
2010
£
Investments 2 4,476,457 1,789,612
  
Current assets  
Debtors: amounts falling due after more than one year 3 45,789,835 33,249,812
Debtors: amounts falling due within one year 3 67,900 269,297
Short-term investments – 5,000,000
Cash at bank and in hand 6,145,620 4,809,498
 52,003,355 43,328,607
Creditors: amounts falling due within one year 4 (142,280) (11,290)
Net current assets 51,861,075 43,317,317
  
Net assets 56,337,532 45,106,929
  
Capital and reserves  
Called up share capital 5 750,632 699,931
Share premium account 6 55,624,325 45,620,075
Profit and loss account 6 (37,425) (1,213,077)
Total Shareholders’ funds 7 56,337,532 45,106,929
The notes on pages 65 to 68 are an integral part of these consolidated financial statements. 
The financial statements on pages 64 to 68 were approved by the Board of Directors on 22 February 2012 and have been signed  
on its behalf by: 
Richard Webster 
Director 
  NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
65 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
1. Principal accounting policies 
The financial statements have been prepared in accordance with applicable accounting standards and the Companies Act 2006 in 
the United Kingdom. A summary of the more important accounting policies, which have been reviewed by the Board of Directors  
in accordance with Financial Reporting Standard (“FRS”) 18, ‘Accounting policies’, and have been applied consistently, other than 
as explained, is set out below. 
Basis of accounting 
The financial statements have been prepared in accordance with the historical cost convention. Under section 408 of the 
Companies Act 2006 the Company is exempt from the requirement to present its own profit and loss account. The Company  
has taken advantage of the exemption in FRS 1 (revised 1996), ‘Cash flow statements’ which provides that where a company  
is a member of a group and a consolidated cash flow statement is published the company does not have to prepare a cash  
flow statement. 
Going concern  
In considering the appropriate basis on which to prepare the financial statements, the Directors are required to consider whether 
the Group can continue in operational existence for the foreseeable future. At 30 September 2011, the Company had cash at bank  
and in hand of £6,145,620 and in addition, Note 11 sets out the details of the underwritten rights issue, to raise approximately 
£9.38 million (£8.78 million net of expenses) and an additional £1.8 million (net of expenses) raised through a placing of shares. 
The Directors are currently of the opinion that the Group’s forecasts and projections, taking account of reasonably possible 
changes in trading performance, together with the proposed rights issue and placing of shares, show the Group has adequate 
financial resources to continue to operate for a period of at least 12 months from the date of this report. For this reason, the going 
concern basis is considered appropriate for the preparation of financial statements. 
The Company is currently loss making and cash flow negative. The Board has taken and continues to take a number of actions to 
conserve the cash resources of the business whilst prioritising activity in those areas seen as most likely to secure revenues in the 
near term. The plan entails the implementation of identified reductions in development activities and further significant reductions in 
the operating cost base of the Group in the second half of calendar year 2012. Such actions could slow the Group’s development 
and have an adverse effect on its business in the longer term. If, as the Board anticipates, the business succeeds in generating 
material revenues, the Group will continue to invest in the commercialisation of its PDX reactor and atomising technology in order 
to grow the business. 
Fixed asset investment 
Investments in subsidiaries are carried at cost less impairment in the Company’s individual financial statements. 
Financial instruments 
Deposits with financial institutions which are not repayable on demand without penalty are classified as current asset investments. 
Interest on short-term investments is recognised on the accruals basis over the life of the investment. 
Deferred taxation 
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, 
where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have 
occurred at the balance sheet. 
A net deferred tax asset is recognised as recoverable and therefore recognised only when, on the basis of all available evidence,  
it can be regarded as more likely than not that there will be suitable taxable profits against which to recover carried forward tax 
losses and from which the future reversal of underlying timing differences can be deducted. 
Deferred tax is measured at the average tax rates that are expected to apply in the period in which the timing differences are 
expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. 
Foreign currencies 
Transactions denominated in foreign currencies are recorded at exchange rates as of the date of the transaction. Monetary  
assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing  
at that date. 
Any gain or loss arising from a change in exchange rates subsequent to the date of the initial transaction is included as an exchange 
gain or loss in the profit and loss account, except where financing of a foreign subsidiary through long-term loans is intended to  
be as permanent as equity. Such balances are treated as part of the net investment and any exchange differences are recorded  
in reserves. 
    
 
 
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED 
66 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
1. Principal accounting policies continued 
Share-based payments 
The Company issues equity-settled share-based instruments to its Employees. In accordance with FRS 20, ‘Share-based 
Payments’, equity-settled share-based payments are measured at fair value at the date of grant. Fair value is measured by use  
of the Black-Scholes option pricing model or the Monte Carlo option pricing model where there are market-based performance 
conditions. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line 
basis over the vesting period, based on the Company’s estimate of the number of shares that will ultimately vest. The cost 
associated with options granted to employees of a subsidiary is treated as an addition to the investment in that subsidiary. 
In accordance with UITF Abstract 25, ‘National Insurance Contributions on share option gains’, the Company makes charges to the 
profit and loss account for the potential employer’s National Insurance liability on options granted, spread over the vesting period of 
those options. No charge has been made in the year ended 30 September 2011 on the grounds that the liability for such payments 
has been passed to the employees. 
2. Investments 
 
2011 
£ 
2010
£
Cost and net book value  
At start of year 1,789,612 730,037
Additions 538,793 64,041
Capital contribution arising from FRS 20 2,821,614 1,196,835
Impairment (673,562) (201,301)
At end of year 4,476,457 1,789,612
The addition of £538,793 relates to additional capitalisation of PDX Businessgroups AG during the year. 
The impairment arose as a result of reviewing the carrying value of the Company’s investment against the net assets of the 
subsidiaries concerned. 
The Company’s investments comprise interests in 12 Group undertakings, all of which are included in the consolidated financial 
statements. 
Details of these are shown below: 
Name of undertaking 
Country of 
incorporation Nature of business Class of shares 
Proportion of 
nominal value of 
shares held by Group
Pursuit Marine Drive Limited England and Wales Development and 
sale of process 
technology
Ordinary 1 pence 
Shares 
100%
Pursuit Processing Equipment Limited England and Wales Sale of process 
technology
Ordinary £1 Shares 100%
Pursuit Resources Limited England and Wales Dormant Ordinary £1 Shares 100%
Pursuit Fire Limited England and Wales Dormant Ordinary £1 Shares 100%
Pursuit Dynamics, Inc. Delaware, USA Sale of process 
technology
Common Shares, nil 
par value 
100%
Pursuit Turbine Cooling Limited England and Wales Dormant Ordinary £1 Shares 100%
PDX Businessgroup AG Switzerland Holding company Ordinary CHF1 
Shares 
100%
PDX Technologies AG Switzerland Research & 
Development 
company
Ordinary CHF1 
Shares 
100%
PDX Management AG Switzerland Provision of Group 
services
Ordinary CHF1 
Shares 
100%
PDX Public Health and Safety AG Switzerland Sales & Marketing 
company 
Ordinary CHF1 
Shares 
100%
BFX Solutions AG Switzerland Sales & Marketing 
company 
Ordinary CHF1 
Shares 
100%
DDX Solutions AG Switzerland Sales & Marketing 
company
Ordinary CHF1 
Shares 
100%
    
 
67 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
3. Debtors 
 
2011
£
2010
£
Amounts falling due after more than one year 
Amounts owed by Group companies   45,789,835 33,249,812
 45,789,835 33,249,812 
Amounts falling due within one year 
Other debtors 62,809 254,207
Prepayments and accrued income 5,091 15,090
 67,900  269,297 
4. Creditors 
 
2011
£
2010
£
Amounts falling due within one year 
Trade creditors 3,332 6,199
Other creditors 4,435 91 
Accruals and deferred income 134,513 5,000
 142,280  11,290 
5. Called up share capital 
 
2011
£
2010
£
Authorised 
100,000,000 Ordinary shares of 1 pence each 1,000,000 1,000,000
Allotted, called up and fully paid 
75,063,263 (2010: 69,993,145) Ordinary Shares of 1 pence each 750,632 699,931
On 28 April 2011 3,200,000 Ordinary Shares of 1 pence were issued at a price of £2.50 with costs of £161,827 associated with the 
share issue. 
During the year 1,870,118 (2010: 935,027) options over 1 pence Ordinary Shares were exercised raising £2,216,778 
(2010: £716,589). 
 
2011
£
2010
£
Allotted, called up and fully paid 
As at 1 October 2010 699,931 650,581
Issued during the year 50,701 49,350
As at 30 September 2011 750,632 699,931
6. Share premium account and reserves 
 
Share 
premium 
account 
£
Profit 
and loss 
account 
£
As at 1 October 2010 45,620,075 (1,213,077)
Options exercised 2,198,077 –
Issuance costs of shares (161,827) –
Share issue 7,968,000 –
Deemed capital contribution – 2,821,614
Currency exchange differences – (3,967)
Share option compensation charge – 795,038
Loss for the financial year – (2,437,033)
As at 30 September 2011 55,624,325 (37,425)
    
 
 
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED 
68 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
7. Reconciliation of movements in Shareholders’ funds 
 
2011 
£ 
2010
£
Proceeds of Ordinary Share issue 8,000,000 10,000,000
Proceeds of Ordinary Shares issued on exercise of options 2,216,778 716,589
Issuance costs of shares (161,827) (304,017)
Deemed capital contribution 2,821,614 1,196,855
Currency exchange differences (3,967) 308
Loss for the financial year (2,437,033) (553,549)
Share option compensation charge 795,038 16,674
Shareholders’ funds 1 October 45,106,929 34,034,069
Shareholders’ funds at 30 September 56,337,532 45,106,929
8. Employee information 
The Company had an average of 5 (2010: 4) employees during the year.  
The employee costs for the Company were £353,588 (2010: £158,364). 
9. Parent company result for the year 
As permitted by section 408 of the Companies Act 2006, a separate profit and loss account of the Company is not presented. 
The Company’s loss for the financial year was £2,437,033 (2010: £553,549). 
The only other recognised gains or losses for the financial year other than the loss disclosed above was a loss of £3,967 arising  
on the translation of foreign currency denominated long-term intercompany balances. 
10. Related party transactions 
The Company has taken advantage of the exemption from disclosure available to parent companies under FRS 8 ‘Related Party 
Disclosures’, where transactions and balances between Group entities have been eliminated on consolidation. 
Details of Directors’ Remuneration are included in Note 25 of the consolidated accounts. 
11. Post-balance sheet events 
On 15 December 2011, the Company announced its intention to raise approximately £8.78 million net of expenses by way of a 1 for 8 
rights issue, with 9,382,908 shares being issued at £1 per share. The prospectus for the rights issue, which has been underwritten 
by institutional investors, was issued on 22 February 2012. In addition the Company is raising an additional £1.8 million (net of 
expenses) through the placing of 1,800,000 New PDX Shares at 100 pence per share. The fundraising will raise approximately  
£11.2 million (£10.6 million net of expenses). 
  NOTICE OF ANNUAL GENERAL MEETING 
 
69 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
NOTICE IS HEREBY GIVEN that the ANNUAL GENERAL MEETING of PURSUIT DYNAMICS PLC (the “Company”) will be held  
at the Marriot Hotel, Kingfisher Way, Hinchingbrooke Business Park, Huntingdon, Cambridgeshire PE29 6FL on 27 March 2012 at 
11 a.m. (GMT) for the purpose of considering and, if thought fit, passing the following resolutions of which resolutions 1 to 7 will be 
proposed as ordinary resolutions and resolutions 8 and 9 will be proposed as special resolutions:  
Ordinary business 
Ordinary resolutions  
1. To receive, approve and adopt the Company’s annual accounts for the financial year ended 30 September 2011 together with 
the Directors’ report and the auditors’ report on those accounts.  
2. To reappoint PricewaterhouseCoopers LLP as auditors until the conclusion of the next Annual General Meeting of the Company 
at which the accounts are laid and to authorise the Directors to fix their remuneration. 
3. To approve the Directors’ Remuneration Report for the financial year ended 30 September 2011.  
4. To appoint Bernard Bulkin, who holds office until the date of this meeting, as a Director. 
5. To appoint Jeremy Pelczer, who holds office until the date of this meeting, as a Director.  
6. To reappoint Andy Quinn, who retires by rotation, as a Director. 
Special business 
7. That the Directors be generally and unconditionally authorised in accordance with section 551 of the Companies Act 2006  
(the “Act”) to exercise the powers of the Company to allot Relevant Securities (as defined in Note 17 of this notice) up to  
a maximum nominal amount of £287,488 provided that this authority is in substitution for any existing authorities conferred on 
the Directors pursuant to section 551 of the Act and (unless previously revoked or varied by the Company in general meeting) 
shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution, or on 
31 March 2013, whichever is earlier, save that the Directors may allot Relevant Securities pursuant to this authority after that 
date pursuant to an offer or agreement made by the Company on or before that date as if such authority had not expired.  
Special resolutions 
8. That the Directors be empowered to allot equity securities (as described in section 560 of the Act) for the purpose of section 
570(1) of the Act for cash, either pursuant to the authority conferred by resolution 7 or by way of a sale of shares held as 
treasury shares, as if section 561(1) of the Act did not apply to any such allotment or sale provided that this power shall be  
in addition to any existing powers conferred on the Directors pursuant to section 570(1) of the Act and shall be limited to 
allotments of equity securities and the sale of treasury shares:  
a) Pursuant to the terms of any share scheme for employees or service providers of the Company in existence at the date 
hereof or otherwise approved by the members in general meeting; 
b) In connection with a rights issue, open offer or otherwise in favour of Ordinary Shareholders in proportion (as nearly as 
possible) to the number of Ordinary Shares held by them subject to such exclusions as the Directors may deem fit to deal 
with treasury shares, fractional entitlements, record sales or with legal or practical problems arising in any overseas territory 
or with the requirements of any regulatory body or stock exchange; and 
c) Otherwise than pursuant to paragraph (a) or (b) above up to a total nominal amount of £86,247; 
 and such power shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of  
this resolution, or on 31 March 2013, whichever is earlier, but so that the Company may before such expiry make an offer  
to enter into an agreement which would or might require equity securities to be allotted or treasury shares to be sold after 
such expiry, and that the Directors may allot equity securities or sell treasury shares in pursuance of such offer or 
agreement as if the power conferred in this resolution had not expired. 
    
 
 
NOTICE OF ANNUAL GENERAL MEETING CONTINUED 
70 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
Special business continued 
Special resolutions continued 
9. That the Company be generally and unconditionally authorised pursuant to section 701 of the Act to make market purchases  
(as defined in section 693(4) of the Act) of up to 8,624,700 Ordinary Shares at 1 pence each in the capital of the Company  
on such terms and in such manner as the Directors of the Company may from time to time determine, provided that; 
a) The amount paid for each share (exclusive of expenses) shall not be more than an amount equal to 105% of the average 
market value of an Ordinary Share for the five business days immediately preceding the date on which such share is 
contracted to be purchased or less than 1 pence per share; and  
b) The authority herein contained shall expire at the conclusion of the Annual General Meeting of the Company after the 
passing of the resolution or on 31 March 2013, whichever is earlier provided that the Company may, before such expiry, 
make a contract to purchase its own shares which would or might be executed wholly or partly after such expiry, and  
the Company may make a purchase of its own shares in pursuance of such contract as if the authority hereby conferred 
hereby had not expired. 
By Order of the Board  
Richard Webster  
Company Secretary 
22 February 2012 
 
Registered office
Shackleton House 
Kingfisher Way
Hinchingbrooke Business Park
Huntingdon
Cambridgeshire 
PE29 6HB
 
    
 
71 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
Notes to members 
Entitlement to attend and vote 
1. In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those members registered on the 
register of members of the Company as at 6.00 p.m. GMT on 25 March 2012 (or, in the case of an adjournment, on the date 
which is 48 hours before the adjourned meeting) shall be entitled to vote at the meeting in respect of the number of shares 
registered in their name at that time. Changes to entries on the register of members after that time shall be disregarded in 
determining the rights of any person to attend or vote at the meeting.  
2. Every member so entitled, and who intends to attend, is requested to notify the Company at the registered office by 25 March 
2012, to allow the issue of visitor cards. No admittance can be permitted without presentation of the visitor card.  
Appointment of proxies  
3. Every member entitled to attend and vote at the above meeting is entitled to appoint one or more proxies to exercise all or  
any of their rights to attend, speak and vote at the meeting. You can only appoint a proxy using the procedures set out to  
these notes and the notes on the proxy form. 
4. A proxy does not need to be a member of the Company but must attend the Meeting to represent you. Details of how to 
appoint the Chairman of the Meeting or another person as your proxy using the proxy form are set out in the notes to the  
proxy form. If you wish your proxy to speak on your behalf at the Meeting you will need to appoint your own choice of proxy 
(not the Chairman) and give your instructions directly to them. 
5. You may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares. You 
may not appoint more than one proxy to exercise rights attached to any one share. To appoint more than one proxy, please 
contact the Company’s Registrars: Computershare Investor Services PLC. 
6. A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or against the 
resolution. If you either select the “Discretionary” option or if no voting indication is given, your proxy will vote or abstain from 
voting at his or her discretion. Your proxy will vote (or abstain from voting) as he or she thinks fit in relation to any other matter 
which is put before the Meeting. 
Appointment of proxy using hard copy proxy form 
7. The notes to the proxy form explain how to direct your proxy how to vote on each resolution or withhold their vote. 
 To appoint a proxy using the proxy form, the form must be completed and signed; sent or delivered to Computershare Investor 
Services PLC at The Pavilions, Bridgwater Road, Bristol BS99 6ZY; and received by Computershare Investor Services PLC no 
later than 11 a.m. on 25 March 2012. 
 In the case of a member which is a company, the proxy form must be executed under its common seal or signed on its behalf  
by an officer of the company or an attorney for the company. 
 Any power of attorney or any other authority under which the proxy form is signed (or a duly certified copy of such power  
or authority) must be included with the proxy form. 
Appointment of proxies through CREST 
8. CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service may  
do so for the Meeting and any adjournment(s) of it by using the procedures described in the CREST Manual (available from 
https://www.euroclear.com/site/public/EUI). CREST Personal Members or other CREST sponsored members, and those 
CREST members who have appointed a voting service provider(s), should refer to their CREST sponsor or voting service 
provider(s), who will be able to take the appropriate action on their behalf. 
 In order for a proxy appointment made by means of CREST to be valid, the appropriate CREST message (a CREST Proxy 
Instruction) must be properly authenticated in accordance with Euroclear UK & Ireland Limited’s (“EUI”) specifications and 
must contain the information required for such instructions, as described in the CREST Manual. The message must be 
transmitted so as to be received by the issuer’s agent (ID) by 11 a.m. on 25 March 2012. For this purpose, the time of receipt  
will be taken to be the time (as determined by the timestamp applied to the message by the CREST Applications Host) from 
which the issuer’s agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. 
 CREST members and, where applicable, their CREST sponsors or voting service providers should note that EUI does not make 
available special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply  
in relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, if the 
CREST member is a CREST personal member or sponsored member or has appointed a voting service provider(s), to procure 
that his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is 
transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where applicable, 
their CREST sponsors or voting service providers are referred, in particular, to those sections of the CREST Manual concerning 
practical limitations of the CREST system and timings. 
 The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the 
Uncertificated Securities Regulations 2001.   
 
 
NOTICE OF ANNUAL GENERAL MEETING CONTINUED 
72 Pursuit Dynamics plc  
Annual Report and Accounts 2011  
 
 
Notes to members continued 
Appointment of proxy by joint members 
9. In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment 
submitted by the most senior holder will be accepted. Seniority is determined by the order in which the names of the joint 
holders appear in the Company’s register of members in respect of the joint holding (the first-named being the most senior). 
Changing proxy instructions 
10. To change your proxy instructions simply submit a new proxy appointment using the methods set out above. Note that the 
cut-off time for receipt of proxy appointments (see above) also apply in relation to amended instructions; any amended proxy 
appointment received after the relevant cut-off time will be disregarded. 
 Where you have appointed a proxy using the hard-copy proxy form and would like to change the instructions using another 
hard-copy proxy form, please contact the Company’s Registrars. 
 If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt  
of proxies will take precedence. 
Termination of proxy appointments 
11. In order to revoke a proxy instruction you will need to inform the Company by sending a signed hard copy notice clearly stating 
your intention to revoke your proxy appointment to the Company’s Registrars. In the case of a member which is a company, the 
revocation notice must be executed under its common seal or signed on its behalf by an officer of the company or an attorney 
for the company. Any power of attorney or any other authority under which the revocation notice is signed (or a duly certified 
copy of such power or authority) must be included with the revocation notice. 
 The revocation notice must be received by the Company’s Registrars no later than 11 a.m. on 25 March 2012. If you attempt  
to revoke your proxy appointment but the revocation is received after the time specified then, subject to the paragraph directly 
below, your proxy appointment will remain valid. 
 Appointment of a proxy does not preclude you from attending the Meeting and voting in person. If you have appointed a proxy 
and attend the Meeting in person, your proxy appointment will automatically be terminated. 
Corporate representatives 
12. A corporation which is a member can appoint one or more corporate representatives who may exercise, on its behalf, all  
its powers as a member provided that no more than one corporate representative exercises powers over the same share. 
Documents on display 
13. Copies of the Directors’ service contracts and the Non-Executive Directors’ letters of appointment will be available for 
inspection during normal business hours at the registered office of the Company from the date of this notice until the date of 
the Annual General Meeting and at the place of the Meeting for at least 15 minutes prior to the Meeting until its conclusion. 
Notes on the resolutions 
14. In resolution 7 it is proposed that the Board be authorised to allot securities up to a maximum nominal amount of £287,488  
such amount being a sum equal to not more than one third of the issued Ordinary Share capital of the Company following the 
proposed fundraising.  
15. In resolution 8 it is proposed that the Board be authorised to display the statutory pre-emption rights in respect of the allotment 
for cash of equity securities up to a total nominal amount of £86,247 such amount being a sum equal to 10% of the issued 
Ordinary Share capital of the Company following the proposed fundraising.  
16. In resolution 9 it is proposed that the Company be authorised to make market purchases of its own Ordinary Shares up to  
a nominal amount of £86,247 as the Directors may determine in accordance with section 701 of the Act. 
17. “Relevant Securities” means: 
a) Shares in the Company other than the shares allotted pursuant to:  
i) an employee share scheme (as defined by section 1166 of the Act);  
ii) a right to subscribe for shares in the Company where the grant of the right itself constituted a Relevant Security; or 
iii) a right to convert securities into shares in the Company where the grant of the right itself constituted a Relevant 
Security; and 
b) Any right to subscribe for or to convert any security into shares in the Company other than the rights to subscribe for or 
convert any security into shares allotted pursuant to an employee share scheme (as defined by section 1166 of the Act). 
References to the allotment of the Relevant Securities in the resolution include the grant of such rights.  
Electronic communication 
18. You may not use any electronic address provided either: in this notice of Annual General Meeting or any related documents 
(including the Chairman’s letter and proxy form), to communicate with the Company for any purposes other than those 
expressly stated.  Company secretary
Richard Webster
Registered office
Shackleton House 
Kingfisher Way 
Hinchingbrooke Business Park 
Huntingdon 
Cambridgeshire 
PE29 6HB
Company number
4175777
Nominated advisor
Cenkos 
6.7 .8 Tokenhouse Yard 
London 
EC2R 7AS
Brokers
Cenkos 
6.7 .8 Tokenhouse Yard 
London 
EC2R 7AS
Mirabaud Securities LLP 
33 Grosvenor Place 
London 
SW1X 7HY
Auditors
PricewaterhouseCoopers LLP 
Abacus House 
Castle Park 
Cambridge 
CB3 0AN
Bankers
Barclays Commercial Bank 
PO Box 885 
Mortlock House 
Vision Park 
Histon 
Cambridge 
CB24 9DE
Registrars
Computershare Investor Services PLC 
The Pavilions 
Bridgwater Road 
Bristol  
BS99 6ZZ
Company Solicitors
Bryan Cave LLP 
88 Wood Street 
London 
EC2V 7AJ
SECRETARY AND ADVISORS
This report is printed on Cocoon Uncoated 
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73  Pursuit Dynamics plc 
Annual Report and Accounts 2011 PDX
Shackleton House 
Kingfisher Way 
Hinchingbrooke Business Park 
Huntingdon 
Cambridgeshire 
PE29 6HB
T +44 (0)1480 422050 
F +44 (0)1480 422059 
www.pdx.biz Pursuit Dynamics plc Annual Report and Accounts 2011