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.

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!

Yep - fan-blooming-tastic at the moment: QTI Bid: 2.7p Offer: 2.95p Change: 0.3.

Welcome aboard, Oilyrag.

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

This kind of stunt upsets me. I have sold up.

Leakfrog is the brainchild of four Thames Water boffins and was developed for production in partnership with the Aim-listed company Qonnectis, which specialises in energy and water conservation technology.

and yet the only customers QTI have are Thames.

oilivergas: why not contact the company and confirm the newspaper report to ascertain the situation, before selling out.

www.qonnectis.com
.

For further information, please contact:

Qonnectis plc 01932 788299
Michael Tapia, Chief Executive
Richard M. Taylor, Chairman

Oilivergas, you have been somewhat premature in selling I fear,Qonnectis is officially launching Leakfrog following Thames Water and Qonnectis agreeing a licence arrangement with respect to Thames Water's 50% interest in the Leakfrog intellectual property, which will allow the Company to market Leakfrog nationally and internationally.

Commenting on the launch of Leakfrog, Michael Tapia, Qonnectis' Chief Executive, said:

"Having undergone extensive tests and now volume adoption by Thames Water, Leakfrog is proven in the field. We are now looking to target all the other UK water companies, as well as overseas companies, with the aim of large volume throughout the water industry. Water is the world's most precious natural resource and its supply is increasingly under threat. As the need for water conservation becomes increasingly recognised we expect Leakfrog to have a major beneficial effect on water supply efficiency and Qonnectis' sales."

Lets hope they have got their patents firmly in place (far eastern copies will not take long to emerge) & also that they don't hang about in getting this marketed to other water companies.
I still hold this stock, but history shows that QTI are not the best at being pro-active with their products. A dynamic sales director would pay dividends, imo.

Morning all! Having followed the company all this time, I am not sure I understand Oilivergas's panic. After all, the official product launch has only just taken place.

Personally, I'm enjoying the ride!

Must admit I was mystified by Oilvergas' comment re "this kind of stunt". I'm in profit on this one and will continue to hold as I think there's plenty of opportunity for the sp to rise.

Agree, I'm mystified too.
Interesting reply from M Tapia on iii. Followed speculation that Thames at present only installing Leakfrog on a temporary basis (which seems to be the case):

'Many thanks for your email. Leakfrog can be used either on a permanent
basis for always-on leakage monitoring or on a survey basis
temporarily. Typically we would expect a mixture with a move by water
companies to permanent monitoring, perhaps after initially surveying
some of their sites and then deciding where to begin or carry out
permanent installations. Clearly pipe bursts and wastage can occur at
any time as we feel the benefits of permanent leakage monitoring are
compelling.

Neither the myMeter web service or Leakfrog is available direct to the
public through retail although we would expect or or both of them to
become so via water companies or other distributors over time. Right
now, as you will appreciate, we are very much focused on direct water
company sales and setting up distribution channels.'

Thanks for that info Jmac

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

I read and seen ramping by a company before. It is a fact Thames Water invented this product and QTI have failed to do anything with it. QTI then annouce new customer who happens to be the people who invented it.

DYOR then post who another customer is, good luck