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.

From BBC News - Friday, 29 June 2007

Thames Water in 1bn leaks plan

Thames Water has been heavily criticised for leaks in the past
Thames Water has unveiled plans to spend about 1bn in the next year as it tackles leaky pipes in London.

Qonnectis plc
29 August 2007

For Immediate Release 29 August 2007

Qonnectis plc
('Qonnectis' or 'the Company')

Trading Update

Following the recent financial year end, the Board of Qonnectis plc is pleased
to provide shareholders with an overview of trading in the period.

The Company has continued to grow revenues substantially in comparison to the
previous financial year, thus maintaining Qonnectis' track record of significant
sales growth year-on-year.

Qonnectis recently announced the launch of Leakfrog, a new product for
monitoring domestic water leakage developed in partnership with Thames Water.
Shipping of final production Leakfrog units to Thames Water began in June and
subsequent field trials have proved highly successful, such that the Board
remains optimistic regarding the future take-up and growth of this new product
range.

Turning to Qonnectis' Internet-based smart metering products and services,
customers continue to roll out the core iStaq GSM data logging and myMeter web
service product ranges. Additional web site developments for Scottish Water have
been completed, providing their customers with additional value-add services. We
have seen repeat business from other customers, such as Aquavitae and a number
of the NHS Trusts, as they add more sites. Marketing campaigns, together with an
expanded sales resource, have borne fruit and a number of new customers using
Qonnectis' technology to monitor energy and water efficiency have been acquired.
These include Jardine Motors, Smith Bellerby, Crawley Borough Council, Bury
Metropolitan Borough Council and AGA Rayburn.

With energy and environmental concerns so high in global political and economic
agendas, there has been a significant increase in interest in smart metering and
energy/water efficiency products from utilities internationally. Additionally,
the recent UK Government Energy White Paper raises the potential for smart
metering to be introduced to all 22 million homes in the UK. In the water
sector, the Department for Environment, Food and Rural Affairs ('Defra') earlier
this month announced plans to permit compulsory water metering in large parts of
the UK. These trends are likely to generate significant contract opportunities
and distribution partnerships for the Company going forward.

To maximise these opportunities and thereby accelerate its growth, Qonnectis has
reached an agreement with Security Change Ltd whereby the latter has agreed to
provide the Company with a 250,000 secured convertible loan facility repayable
by 31 January 2008. If not previously repaid, the loan may be converted at the
request of the loan holders at a price based on the market value of the shares.

###

Editors' notes - About Qonnectis

Qonnectis' patented technologies enable the analysis of remote meter data to
facilitate water leakage control, customer profiling, and energy and water
management efficiency. Its products are already being used by a wide range of UK
and overseas utilities as well as large commercial and domestic users of energy
or water.

The iStaq family of products work by sending meter readings to Qonnectis' secure
data centre via SMS text messaging over the GSM network. The data is then
aggregated and published online via utility-branded 'myMeter' websites operated
by Qonnectis. The data can also be sent directly to utilities' billing systems.
Customers can access real-time information via a web browser using the 'myMeter'
service. For more information, please visit

Thats much better than anticipated.

Bit of a buying flurry started now.Looks like the MMs are trying to get some cheap stock.

It looks as if there have been no sellers today. The only seller (of 200k shares) indicated was reported late and was almost certainly a buyer. Hence closing range of 0.7/0.85

The 200K was definately a buy and looks like it had to be filled by the MM trade which moved it higher.

GOOD WRITE UP FROM advfn news tonight :-

Qonnectis took top spot among small-cap risers, gaining 0.275 to 0.775 after
the energy and water conservation technology provider said it has continued to
grow revenues substantially compared with the previous year, thus maintaining
its "track record of significant sales growth year-on-year."
Security Change has agreed to provide the company with a 250,000 stg secured
convertible loan facility repayable by Jan 31, 2008.
Meanwhile, Thames Water, Qonnectis' partner in developing its new 'Leakfrog'
domestic water leak detectors, has begun trialing the product.

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=1549873

Lively again this morning - mostly buyers. 250k indicated as a seller looks like a late reported buyer.

Pinch me, I'm dreaming!

Nice to see QTI finally coming good - some of my purchases are even in profit!

The terms of that loan look quite encouraging. Borrowing only quarter of a mil, repayable in Jan 2008 - that's five months. For a while I was worried that the co would be coming back to the market with cap in hand.

Hanging in there - can't wait for the FY's and further newsflow.

Good luck to all. PDYOR etc.

The latest trading update has certainly perked things up. Apart from the new customers for the traditional service the leakfrog development could be really significant - about 800k/25% of Thames household customers are currently metered and Thames are spending a lot on reducing leakage. According to Ofwat about 24% of all England/Wales leakage is from customer supply pipes.

So our faith was not entirely flushed down the drain, Soul!! By the way have you noticed CVL appears to be doing something similar?
rgds

[From the RNS of 29Aug2007]: "Qonnectis recently announced the launch of Leakfrog, a new product for monitoring domestic water leakage developed in partnership with Thames Water. Shipping of final production Leakfrog units to Thames Water began in June and subsequent field trials have proved highly successful, such that the Board remains optimistic regarding the future take-up and growth of this new product range."

All L2 up, and sp is up today by 13.89% to 0.9-1.15p.

Could it be that some orders for the Leakfrog are imminent??

I tried to buy this morning and had to phone my order in the end - couldn't get any online at all!

QTI is up 11.9% this afternoon, following on from yesterday's rise. L2 all blue again and price has gone up to 1.05-1.30.

An interesting reply from thames water re leakfrog posted on another board:

Thank you for your enquiry regarding the Leakfrog.

The use of these devices is currently still at an early stage within Thames
Water. They are currently being installed (and evaluated) on meters fitted
as part of our Victorian Mains Replacement (VMR) programme in London. We
are using them to gain a better understanding of domestic usage and or
leakage so that we can more clearly articulate the benefits of our VMR
programme.

As our experience of these devices grows, a logical extension of their use
will be to fit them as standard on replacement meters or to incorporate
similar technology within the construction of the meter. We are not yet in
this position and I am afraid that Leakfrogs are not available for our
programmes outside VMR at this time.

Thanks for that info, jmacroesus. I feel something must be stirring though, as the price is moving steadly upwards so far this week.

the volume isn't very high so presume it's position taking prior to the results to end june 07 due in the next few weeks. should be an update on leakfrog progress then too.

Qonnectis wins 198,000 stg order for 'Leakfrog' from Thames Water

AFX LONDON (Thomson Financial) - "Qonnectis PLC said it has received an order worth 198,000 stg from Macquarie Bank unit Thames Water, following successful field trials of its new Leakfrog product for water leakage monitoring. The energy and water conservation technology company said the formal launch of Leakfrog will take place in early November.In a statement, the company said it feels that this represents a major milestone in its progress and future growth."

Great news guys - this is what I hoped might be cooking (see 261)

Yes, looking good - sharp rise in the sp this morning - we should get more details with the formal launch in early November.

Awesome! Nearly 6 million shares traded so far today & sp up 75%.
I'm nearly in profit after holding for what seems like an eternity!