This is common practice, Johnty. I guess the Planning Officer told them he wasn't going to support the application, and it would have to go to committee for a decision. With the Officer's recommendation for refusal, this would likely mean it would be finally rejected.
He might have suggested amendments to make the application more acceptable. He might have decided it was a no-no completely.
Either way, if they re-apply, it wouldn't look good to have a Refusal logged against the land........... hence they pulled the plug.