Tiny Qonnectis is at present in an embryonic stage, but seems to have an interesting product with great potential. Their flagship product connects energy and water meters to the Internet via Qonnectis' own server and users' website, providing 24-hour real-time accessibility as well as the opportunity for instant data comparison and updates as frequently as every 15 minutes. This avoids the costs of traditional meter-reading methods (i.e. reading by eye or the more recent "drive-by" technology). The new technology has already saved one early customer a reported 180,000 after it spotted a water leak and alerted the user. Early adopters include utilities such as Scottish Water and Generale des Eaux Lyon, plus public sector clients such as the NHS, the RAF and various District Councils (the list is numerous, so please see QTI's press releases for the whole picture). In November 2005 QTI announced a distribution deal with Compteurs Farnier of France, providing potential access to the USA and Canada in addition to the French market.

The business case for QTI seems strong: the product is inexpensive and provides cost savings both in terms of labour-saving and of cutting wastage. Sales include an element of subscription on a five-year basis; it seems logical that satisfied customers will both increase their number of meters in use and come back for further subscriptions after the five-year period has elapsed. The potential market is huge. The real question is, when will QTI achieve break-even?

CEO Mike Tapia previously built up the Talisman remote/drive-by meter-reading business, which was then sold to Severn Trent Water Co around 1997.

Does anyone have any figures on the Talisman sale, or perhaps on Compteurs Farnier? It would be good to get some idea of the current market.


EDIT: New charts added, 21Dec2007.

another 500k just came through as a sell which looks like another buy.

6 December 2006

Qonnectis plc
Trading Update

The Board of Qonnectis plc ('Qonnectis' or 'the Company') wishes to update its
shareholders regarding the Company's performance as we approach the end of the
first half-year to 31st December 2006 by highlighting the following:

* Growth in the period has been significant, with sales and margins in the
first half expected to be well in excess of those achieved in the same
period last year, and also ahead of the last full financial year ending 30th
June 2006.

* We are winning notable repeat business from Scottish Water, who have
placed a 56,000 order for 'iStaq' data loggers and web services in
December.

* Qonnectis continues to sign up energy and water end users, with recent
examples including multi-utility monitoring for Schlumberger Oilphase and
multi-utility energy and water efficiency monitoring for Redditch Borough
Council.

* Qonnectis''Key Account' marketing campaign - launched in September 2006
and aimed at attracting more UK water companies to offer 'myMeter' web
services to their key business customers - has received a positive response
from various UK water companies, with new trial orders being placed.

* The recent contract announced with a major utility for the development of
a new product is proceeding well. Pre-production units of this product are
already being delivered this month to the utility customer for field trials,
with a launch envisaged in the second half.

Fantastic. JMAC, thanks for the post.

Any idea why this has been issued?

Qonnectis plc
Total Voting Rights

Qonnectis plc announces that, as at 11 December 2006, the total number of its
issued ordinary shares of 1p each carrying voting rights was 218,608,023.

Not sure, JMAC. I thought they may be warming up for another fundraising, but they seem to have some cash in the bank, which from the date of the fundraising in July seemed to be enough for about 12 months.

Which would be nice, as maybe by the middle of 2007 they will have more turnover and an increase in the SP. We can hope . . . :o)

On the basis of the latest trading update turnover to June 07 should reach 250k - i.e. about 4x the turnover to June 05. If they could keep that up......

I think the foundations have been laid. I keep thinking about that big order from the pub business. If QTI really does roll out 2,000 units over three years then it could be worth 1 million p.a.

MT hasn't mentioned the pub order since the RNS,though, so maybe the rollout is not proceeding as quickly in the initial stages.

It's all heading in the right direction, though.

jmacroesus - 11 Dec 2006 14:23 - 117 of 120
Any idea why this has been issued?

Qonnectis plc
Total Voting Rights

Qonnectis plc announces that, as at 11 December 2006, the total number of its
issued ordinary shares of 1p each carrying voting rights was 218,608,023.
--------------------------------------------------------

Seems to be two schools of opinion on this, jmc. BLR, amongst several others, have just done the same thing. It could just be a 'time of the year' regulatory announcement but several people have noticed that companies also issue this information immediately before announcing takeover talks.

40p a share would suit me fine :o)

4p would put me in profit. I'm not greedy!

i am interested in investing in QTI but the share chart is putting me off! The trading statement sounds great,
* Growth in the period has been significant, with sales and margins in the
first half expected to be well in excess of those achieved in the same
period last year, and also ahead of the last full financial year ending 30th
June 2006.
This to me is this saying that QTI in 6 months from july-december 06 will make a bigger profit than the whole of 2005. A certain buy for me.

Argos, what profit ????

QTI is going to increase its sales, but so far they have not made a net profit (only an operating profit) and may not make a net profit for at least the next twelve months.

That said, a few of us really believe in this company's potential, hence we are on board early, but the reality of the situation is that the co may need to issue more shares to raise money in about mid-2007 in order to stay afloat.

Please make sure you have your facts right and have read the company financial reports correctly, as I'd hate for you to pile into this stock on the basis of one line in the trading statement and then to get your fingers burnt.

Agree with that although I doubt that they will make a net profit in less that 2 years - given their cash situation a takeover seems quite possible before then.

Jmac. Re the 'number of voting shares statements'.. its just regulatory, see
http://www.nortonrose.com/html_pubs/view.asp?id=11328

Thanks for clearing that up.

Interesting article about smart (electricity) metering in the latest Economist ('Going metric'- available on economist.com without subscription). Includes the following:

'FOR most people, electricity meters are mundane devices. But in the eyes of utility bosses, they are bursting with untapped potential. For starters, if their design were just a little cleverer, they could transmit instant readings back to the power company, doing away with expensive visits to each customerMany analysts believe that power prices that vary hour by hour or even minute by minute, abetted by smart meters, are the shape of things to come.'

Woo-hoo - wonder if that's what Mike T was talking about in the recent statement about a new product.

Could well be. I'll just have to keep sitting on my firmly crossed fingers!

Sounds uncomfortable. Are you typing with your nose?

If variable utility pricing is eventually introduced for the domestic market that should solve the problem of who pays for the meters because it could be in the interests of both producers and consumers to install them.
According the economist article the 30m smart meters installed in Italy (the 30m figure is correct) seem to have been justified in terms of improved customer service. If the utitilty companies start to introduce smart meters with an inbuilt capacity to send the data over long distances (as opposed to the 'drive-by' sort currently in use) not sure where QTI would fit in - my understanding it that it currently uses data logging/communications devices attached to conventional meters.