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.

Tonight (Thurs 8 Feb 07) Radio 4:

20:30
In Business
Water Works
The geopolitics of oil has loomed over global affairs for the past 80 years, but now the attention of policy makers and investors is turning to an even more basic resource. In an ever thirstier world, Peter Day asks if water will be the next oil?

ST: No, I'm not in the far East, but in the near South, not far from where you are heading. I too am optimistic about the prospects for QTI in the longer term.
JC & SM: Thanks for recent posts, I think the news supports this longer term view.
Purely from a charting point of view, I like my recovery stocks to spend some time in the doldrums, long enough for the sp to easily cross and lead the 65 & 125 dma's. as has happened with CW & PDR from opposite ends of the spectrum in my recovery portfolio (although other stocks I have, aren't so accommodating). Any whiff of a possible cash call for QTI will probably ensure the sp stays depressed for a while yet and maybe I'll be piling in when reconstructing my portfolio in the new fiscal year.
sd.

They may well get there in the end, Soul but I am beginning to suspect the next ice age might come first. Then we will be frozen in as well as locked in!
(Over on ADVFN, the QTI thread has taken to discussing dog racing to pass the time!!)

Never mind, Dave, I seem to be blessed with incredible amounts of patience where Qonnectis is concerned, and sometimes wish I wasn't :o)

At the present time a new ice age seems distinctly unlikely...The March interims should provide something positive - hopefully an indication that the revenue for the current financial year will top 300k.
My main concern is that their product will be displaced by companies like Severn Trent with greater development resources. See:
SmartMeter(TM) Water Meters Receive Measuring Instruments Directive Approval for EuropeSource: www.edie.net

Still watching QTI, but can't find much that's positive: my trawl thro' all the info' that Google produced, raised more questions than answers. Meanwhile, I've had a nibble at SPI which among other things does meter readings.
sd.

Take your point jmac, but the article concerns the development of meters which retain long term accuracy. Seems to me that QTI's technology to monitor these is then even more relevant. What are we missing here? Why is this company not heading for the stars? If they don't grasp the nettle soon then your concerns will become only too evident... somebody will steal the advantage with a vengence.
rgds.

M Tapia, ceo of QTI, founded Talisman Systems which was acquired by Severn Trent in 1997. But Severn Trent are now introducing meters with sophisticated data logging and inbuilt transmitters - probably short range at present but I wouldn't think it would be difficult to extend this using mobile phone technology etc. This is from Severn Trent's www.smartmeter.co.uk website:

Severn Trent Metering Services Introduces Revolutionary Water Meter with Internal Radio Transmitter
Date: 30/06/2006


Chesterfield, UK June 29th, 2006 Severn Trent Services has introduced the latest addition to its SmartMeter family of fluidic oscillation water meters. The SmartMeter C100R concentric water meter features a range of functions designed to provide real-time monitoring and reporting of domestic water consumption data, identification of peak week demand and the detection of leakages. The C100R helps address concerns about water shortages by improving management and reducing demand of water resources.

Severn Trent Metering Services recognised the need for a new approach to tackle the issue of water resource management. After discussing with seven UK water companies the need for an improved meter, a working group was set up to establish a detailed technical specification and to complete the final design. The development of this revolutionary new water meter took 21 months from conception to launch.

Utilising an internal radio that transmits real-time data, the C100R constantly monitors consumption patterns and stores information on continuous flow, which may indicate leakage on customers' properties. The transmitter produces data every 30 seconds, providing users with the ability to carry out high resolution wireless data logging. The real-time data information enables daily, hourly or more frequent data logging, offering water utilities the ability to perform consumption profiling and to implement time-of-day and seasonal tariffs, encouraging consumers to use water during non-peak demand times.

The C100R is configured with a real-time clock and calendar and is programmed to store meter readings for the previous 14 months to provide accurate billing data and minimise customer disputes. It also is capable of recording the start date, duration and rate of water leakages, enabling water utilities to identify and prioritise where work is required and when the repairs have been successfully completed.

Reading between the lines, it seems that the local data retention and 'proximity' interrogation of the Severn Trent system could well be to deliberately steer clear of QTI's remote interrogation facility... perhaps even to permit complimentarity?

However, it doesn't change the point that unless QTI grabs the baton and runs with it, somebody else will... which is what is going to affect us directly as investors!

Be interesting to find out if the 'Partnership with Major UK Water Company' announced on 5/2 was with Severn Trent - I suspect it may have been. Hopefully we'll find out in the interim statement in March.

sp at an all-time low this morning with a buy at 0.55 and a sell at 0.30.

Sitting on a big loss on this one, but haven't entirely given up hope of a recovery.

Doesn't look as if the interim statement will contain too much good news. Can't see them folding - more likely they would be bought out by one or more customers if/when they run into another cash crisis.

I'm almost resigned to that now jmac... a fully realised 95% loss unless some gem of a customer thinks its worth what I originally hoped it would be!
If it comes to pass, the only winners will be the directors whose salaries will have amounted to a substantial part of the drop in MC over the last few years!

Interim results due out this week?

25th January 2007
'We announced at the beginning of last month that trading since the year end (30/06) has been encouraging.

(Growth...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)

A further update will be provided in the 2007 Interim Results,
which are due to be announced in March.

5th February 2007
Qonnectis plc announces that, following successful field trials of pre-production units, it has received initial orders for a new product from a major UK water utility to a value of 73,000.

JMAC, results ought to be out by end of March if previous years are anything to go by.

hope it's good news . . . .

ST - on the basis of the statements issued since the 06 final results came out I would have expected indications of a significant improvement in turnover and profitability. However since the end of January share sales have exceeded shares bought by about 4m so am not so sure. Maybe the market has got it wrong....

Difficult to call, JMAC. I guess a few punters must be disappointed with the performance. I agree that there ought to be an upturn in turnover, but how big that is likely to be is another thing altogether.

Watching and waiting . . . .

A bit of a drop this morning: QTI Bid: 0.375p Offer: 0.5p Change: -0.0625

618,000 traded.

I hope this is a pre-results tree-shake!

Qonnectis plc
28 March 2007


QONNECTIS PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2006


Qonnectis plc ('Qonnectis' or 'the Company'; stock code: QTI), a market leader
in multi-utility smart metering, announces its unaudited interim results for the
six months ended 31 December 2006, a period of continued progress.


Highlights:


Turnover increased by 141% to 161,185. (H1 2006: 66,983; FY 2006:
109,425);
Gross margin increased to 66% (H1 2006: 57%; FY 2006: 29%);
Significant new client wins, repeat orders continue to increase;
Strengthening key client relationships whilst founding new ones;
Production of units incorporating new technology;
Loss per share 0.23p (H1 2006: 0.25p; FY 2006: 0.51p)


Commenting on the results, Chairman, Richard Taylor said:


'The Company has continued to make progress. Once again turnover has increased
sharply, the gross margin has further improved, we continue to expand the client
base and increase the level of repeat business. The monies raised during the
period have been used to expand our marketing resources, primarily, and we are
beginning to see the benefits of this. In addition, we are excited by the pace
of development of our partnership with a major UK water company for the
production of units incorporating new technology for leakage control and
monitoring applications. The progress made in the period shows every sign of
being sustained in the second half of FY 2007.'