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.

Just so, jm. I'm just looking for the straw to break the back of my pessimism!
Thanks for your views.

For the first time in absolutely ages the bid offer spread looks like it is going to be above 2p!!! It's been a long wait.

Hope you're wrong there Harry. A spread of over 2p with the offer at 2.1p means you'll have to pay somebody to take them off you!!! My losses on this share are already sufficient. Negative equity on these is something I could definitely do without!

Badly phrased on my part! I was hoping for both the bid & the offer to be over 2p.

Guessed as much... but couldn't resist the dig!!
Looks like my pessimism is going to pay off on my average down!

Hold on tight everybody, I've just quintupled my holding which will well and truly spook the sp!

It has spooked it - it's gone down! And I was in profit earlier...

Copied from another board in response to a question about the timing of the launch:

"Please accept my apologies for the delay in replying to your email. There are a number of acitivies being planned, and a sequence of events ahead of the launch itself which we need to complete. However, please note that Leakfrog is primarily targeted at UK water companies, and so our sales and marketing efforts will be predominantly in the trade in terms of PR and trade events. There will of course be a stockmarket announcement when the event takes place.

With best wishes,

Mike

Thanks for that info Jmacroesus.

1.75/2.05
A recent response to an enquiry about the launch copied from another board:

Many thanks for your email. We are progressing the launch timetable with
Thames - there are a number of things that need to be carried out before
launch and so there is a little delay although the plans are progressing very
well. This is of course an industrial product so our marketing
activities will be targeted at the water industry trade rather than the
general ."

Best regards,

Mike

Michael Tapia
Chief Executive
Qonnectis plc

Thanks Jmac. Moving up again and I'm back in profit. Should keep heading north from here (forever optimistic!).

rumour on another board is the launch could be 5th december

QTI Bid: 1.8p Offer: 2.1p Change: 0.075

nice. Thanks, JMAC and others, for the updates.

FWIW I think that things look positive, with product launch hopefully soon and also some hopefully rather interesting financials due in the next couple of weeks.

PDYOR, etc.

The 5th December date refers to an event listed on QTI's website. I imagine they knew about that before the 'early November' idea, so suspect there will be something before that. As the finals are due soon, there will be some reference to leakfrog in that, if not sooner.

sp holding up well in spite of some significant sales today.

The agenda for the December 5 meeting is as follows:
http://wifc.flowprogramme.co.uk/docs/view-doc.asp?File=WIFC_071205_Agenda.pdf

I doubt if this is the formal launch.

No - doubt it will have anything to do with the launch. But thanks for the info - interesting meeting.

In the Leakfrog context it is interesting the see that Ofwat is now targeting customers' supply pipe leakage (p1):
http://www.environment-agency.gov.uk/commondata/acrobat/bulletin_85_final_1882661.pdf

Thanks Jmac - had not seen this. There seem to be some buys this morning but nothing very exciting.

Yes, but good to see the sp holding up well in spite of the news delay - something should come out of the meeting on Wednesday (5th) if not sooner.

Tipped by RHPS this weekend :-)