Yes it cuts the ignition power at the minimum, I think even the older PATS cut fuel supply as well.

Check you have +12V at the black wire at the coil with the ignition switched on.

If you do have power at coil then it's not an immobiliser issue, the most likely thing in this case is the inductive module that has given up this is mounted to the distributor this replaced the points system.

This is a MK3 Fiesta I am guessing?

Martin