Companies: PDX   

Technology licensing play Pursuit Dynamics, originally backed by GCI at 48p, looks increasingly eye catching. Bossed by energetic chief executive John Heathcote, Pursuit joined AIM at 50p back in 2001 and has since regaled the market with updates regarding its pumping and propulsion technology. According to Heathcote, the technology, based on a steam-driven supersonic shockwave, now has the potential ‘to revolutionise manufacturing techniques’ across a slew of major industries.

Pursuit's losses rose 40% to £2.8m on £90,000 turnover last year to September, yet the company has already proven the efficacy of its system in the food industry. Its first product, the PDX Sonic, used in food and soft drinks manufacturing, was launched early in 2005. It has since been licensed out to a band of players in Europe, the US and Central America. Huge potential applications are additionally under development for waste treatment, brewing, oil and gas and pharmaceuticals – Pursuit’s PDX Basilisk decontamination system is even undergoing trials with the US Department of Defense.

Before Christmas, Heathcote announced transformational news, unveiling a first-ever global licensing deal, with Pursuit granting an exclusive licence for its fire-suppression technology to US-listed Tyco, the market leader in the enormous fire suppression equipment supply market.

Pursuit’s water-mist technology is better at fighting fires than legacy mist systems because it produces a higher volume of smaller water droplets and also boasts impressive continuous flow and projection capabilities. Heathcote, predicting first revenues from Tyco to flow through in early 2007, claims the use of water mist is burgeoning on the back of regulatory pressures related to the phasing out of Halon and CO2 based systems.

Pursuit, which recently raised £8m at 150p a share to speed up progress and fortify the balance sheet, is worth considering anew on recent weakness, with the shares trading well below the 52-week 267p peak. Buy.