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.

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!

Luckily I'm well in profit as I only bought very recently. It's been tempting to sell today but I'm inclined to hold on to these. I feel this is just the start, having read the RNSs etc.

I agree, think this has some way to go yet.

Morning all! And welcome to those I haven't seen here before: Harry, Toya and others!

Agreed, the news is very positive (the Leakfrog order is bigger than reported turnover for the HY ending DEcember 2006!) and I'm delighted to say that I'm now not far off break-even, based on pound-cost average. :o)

Finals due in about 5 weeks' time?