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.

Let's hope they're right - could be the Xmas present we're waiting for!

They're going to have to say something about the results to end June soon, even if its only goodbye!

Interesting item posted on iii from recently published Thames Water document:
'Case study: Automated meter reading
Our trial of automated meter reading has allowed us to record water meter data at 15-minute intervals for 1,500 properties in parts of north London. Recording was achieved through a fixed radio network and ‘walk-by’ radio collection. This ‘smart metering’ has revealed major advantages which will ultimately enable us to:
• Develop the capability to display data on a unit in the customer’s house or on a website, so customers can see their own water use and adapt their behaviour accordingly.
• Identify continuous usage, helping to pinpoint where customer-side or distribution system leakage may exist.
• Better understand water use – for example, if customers run dishwashers at night without a smart meter, it risks being counted as leakage.
• Monitor the impacts of water efficiency advice and practice.
• Provide more accurate billing forecasts during times of variable demand, such as hot weather.'

Here's the RNS we've been waiting for guys:

Commercial Launch of Leakfrog - domestic water leakage monitoring device

Qonnectis plc ('Qonnectis' or 'the Company') is officially launching Leakfrog,
its innovative product for detecting and measuring domestic water leaks. This
follows Thames Water ('Thames') and Qonnectis agreeing a licence arrangement
with respect to Thames' 50% interest in the Leakfrog intellectual property
which will allow the Company to market Leakfrog nationally and internationally.

More at:
QTI - Commercial Launch of Leakfrog

Good response so far - the results will be out soon and should contain more info about financial implications.

Brilliant news this morning. Am glad I've kept the faith! Those results will indeed be interesting. Frankly the thought of Leakfrog being rolled out (and the trial alone involved 1500 units - how big will this go??!!) has me watering at the mouth.

Good luck to all. Hopefully we won't need it!

ST

Qonnectis plc
PRELIMINARY RESULTS FOR THE YEAR TO 30 JUNE 2007

Qonnectis plc ('Qonnectis' or 'the Company'; stock code: QTI), the energy and
water conservation IT services provider, announces its audited results for the
year to 30 June 2007.

Highlights:

Turnover almost trebled in comparison to 2006 levels to 304,776
Gross profit margins widened to 63.6% (2006: 29.1%)
Reported loss of 861,129 similar to 2006
Development of Leakfrog domestic leakage monitoring device in
partnership with Thames Water
New multi-utility monitoring contracts and business wins
Repeat business from a number of clients

For full RNS:

QTI Prelims to 30 June 2007

Good to see that the market is having second thoughts about the results which are v satisfactory imo with a trebling of turnover (and a doubling of the excellent first half), maintenance of gross margin and no immediate pressure on cash.
Because of TW deal turnover in current FY should be £500k+ new/repeat iStaq sales + new leakfrog sales+other new business.

Some interesting background from the results:

'Thames Water ('Thames') represents our most significant new customer win this
year and I should like to explain the significance of this partnership. As part
of their ongoing efforts to reduce leakages via their renewal programme of the
Victorian mains system in London, Thames identified a major area of challenge
and opportunity as being how to quantify and reduce the level of leakage within
homes and private buildings. Domestic monitoring has always presented a
challenge for the utility industry - there are millions of properties and hence
the associated costs are difficult to justify from an economic standpoint.

Thames set us the challenge to develop a product that would meet their
aggressive technical and cost criteria, and I am very pleased to say that our
team have been able to deliver. Working in partnership with Thames, we have
developed Leakfrog(R), a highly functional and cost-effective leakage monitor
for the home. Leakfrog(R) allows water companies to carry out large scale
domestic leakage monitoring for the first time and we are highly optimistic that
it will be widely adopted within the water industry. The intellectual property
rights for Leakfrog are jointly owned by the two parties. Just prior to writing
this review we signed a licence agreement with Thames Water and Qonnectis can
now market Leakfrog to other UK and overseas water companies.'

Looks good for the future, albeit slightly slow progress still. One still has to wonder how far we are from breakeven. However, the picture overall is encouraging, and I include that fact that institutions have begun to pay attention.

Look out for possible fundraisings - i.e. dilutions through share placings.

I might buy some more on dips in the SP.

PDYOR, etc.

ST

New charts added to header.

ST, as long as they can control costs and maintain margins I reckon they could break even with turnover between 1.5 and 2m. Clearly the development costs for Leakfrog have resulted in a bigger loss in FY07 than would have otherwise have obtained but this could pay back in spades in the next couple of years. Its seems quite possible that turnover in the current financial year could reach 1m (they've just trebled FY06 turnover when a lot of effort must have gone into the leakfrog development.) So on that basis they could be heading for profitability in FY09.

From Channel 4 website

Source: PA News

Boffins at a leading water company have invented a new device aimed at reducing the millions of litres of water lost through leaking pipes by up to a quarter.

Thames Water said the invention, called Leakfrog, will boost its programme of cutting leakages, which account for around 25% of all water lost in its supply area.

The device is attached to a water meter overnight and will show if any water is being lost.

John Halsall, Thames Water's director of water services, said: "We are making great progress on tackling leakage, but it's still our biggest priority.

"While huge savings are being made through our Victorian mains replacement programme across London, up to a quarter of all leakage - around 170 million litres a day - is actually from pipe work belonging to customers.

"Until now, this water loss has been extremely difficult to pinpoint and account for. Now, with Leakfrog we can get a better idea of how much water is leaking from the customer's side.

"Leaks are not only an unnecessary waste of water, but left undetected can add hundreds of pounds to bills and cause damage to the property.

"Often customers are unaware if they have leaking pipes. Leakfrog will help identify them, but we would also advise any customers who have seen bills rise by unusually high amounts to contact our customer centre or a qualified plumber."

Nic Clay-Michael, special projects manager at Thames Water, and one of the inventors, said: "The devices have been specially designed so that they can be easily fitted, in large numbers, to our meters, and they tell us if a leak is present, something our previous methods haven't been able to do on such a large scale."

I like the look of what I see here. Had a small dabble this morning, only 25000 shares but i've put my toe in the water, so to speak.

Jmac: thanks for that info. Oily: I'm sure you won't drown so long as you're prepared to keep paddling for a while.

There's a photo in this item:

http://www.guardian.co.uk/business/2007/dec/28/leakfrog

Going like a train at the mo.

You're right - quite a spike earlier on today.

Incidentally: AGM on 29 January.

Understand they've been tipped in shares mag.

Jmac: thanks for finding a pic of our little Frog-to-be-turned-into-a-Prince!