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.

I see QTI's stand is near the food and drinks - they've clearly got the right priorities....

http://www.esta.org.uk/esta/uploads/ESTA%20aM&T%202008%20exhibition%20layout%20v2F.ppt

Good - best place to be if you want to make sure everyone can find your stand!

1st February 2008

Qonnectis plc
(AIM: QTI)

Issue of Equity


Qonnectis plc ('the Company'), the energy and environmental data monitoring
service provider for utilities and major commercial users of energy and water,
announces it has agreed that the principal amount of the loan stock, all
interest outstanding thereon and any other obligations of the Company pursuant
to the loan facility, loan note instrument and debenture dated 28 August 2007
between the Company and Security Change Limited (the 'Loan Facility') shall be
satisfied by the allotment to Security Change Limited (or to whom they direct)
of 25,000,000 ordinary shares of 1p each ('Conversion Shares').

The parties have agreed that the conversion price be 1p per share, which
represents a premium to the closing market price the day before the Loan
Facility was announced on 29 August 2007.

Application has been made to The London Stock Exchange for the Conversion
Shares, which will rank pari passu with the existing shares in issue, to be
admitted to AIM, and admission is expected to become effective on 7 February
2008.

Following this notification, the total number of shares in issue stands at
243,608,023.

Dont know who Security Change Ltd are but they appear to have done rather well out of the 250,000 loan they extended to QTI last August (like 100%). Not so good for sharehoders as their hodings diluted by 10%.

Yes, but seems to have been factored into the current sp.

Perhaps but now shareholders own 10% less of the company and no doubt Security Change Ltd will be looking to off load their 25 million shares.

A lot depends on how many shares they dispose of, how they do it and in what time frame but on the face of it a 10% dilution (which has been more or less expected for months) shouldn't have much effect on the sp in the medium term.

Took a small holding here today, things looking up for this baby boomer...

RNS today re: Memorandum of Understanding

The Board of Qonnectis plc ('the Company'), the data monitoring service provider
for utilities and major commercial users of energy and water, is pleased to
announce that it has signed a memorandum of understanding to enter into a
distribution agreement for its new Leakfrog product with Halma Water Management
('HWM'), the sales distribution arm of Palmer Environmental Ltd, part of Halma
plc. The definitive distribution agreement, to be signed after due process, will
enable Qonnectis and HWM to jointly market the Leakfrog domestic leakage monitor
throughout the UK and internationally.

Michael Tapia, Chief Executive of Qonnectis, commented: 'HWM is internationally recognised as a leading supplier of water infrastructure and leakage products. The agreement will enable both parties to quickly take Leakfrog to a very wide global market.'

Halma Water Management is a successful sales and sales support organisation
servicing the water industry. HWM has dedicated sales teams throughout the UK
and 35 international distributors servicing more than 50 countries worldwide.
Today Qonnectis is presenting its Leakfrog product to over 100 of HWM's
customers and distributors at its annual conference held at Wembley Stadium
Conference Centre.

Mike Tennant, Business Development and Marketing Director of Palmer
Environmental/HWM, said: 'We are very excited about the potential for Leakfrog with our customer base and look forward to a strong partnership with Qonnectis'.

Lets hope for a positive responce from the markets.

Wow they just doubled the mark up, that was quick.

Today's MOU confirms that QTI can do deals with the right companies and I feel they are worth a long-term hold so am not too concerned what happens on the day (unlike some shares that I like to trade). But any upward movement is always welcome!

Not many opportunities left for topping up, I hope.

The Halma agreement looks v. interesting - esp the international aspect. Wonder if there's a possibility of it being followed by a takeover. Not much evidence so far of many of the Security Change shares sloshing around - presumably there'll be an RNS whenever a significant threshold is crossed.

The 25m Security Change shares now listed under 'J M Finn Nominees Limited' on QTI's website.

Interims will be out before end March.

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007

Period of continued growth

Qonnectis plc ('the Company'), the data monitoring service provider for
utilities and major commercial users of energy and water, announces its results
for the six months ended 31 December 2007, a period of continued growth.

Highlights:


Sales increased 81% to 291,281
Gross margins maintained
Operating loss reduced to 197,168 (2007: 380,098)
Leakfrog (R) domestic monitor launched
o Major order from Thames Water
o Significant new orders post period

Michael Tapia, Chief Executive of Qonnectis, commented:

'Repeat and new sales of the Qonnectis Smart Metering products have continued
and, since the period end, further significant progress has been made with the
Company receiving orders for Leakfrog (R) from South West Water and Three
Valleys Water.

'By applying increasing resources to both the selling and volume delivery of our
products, the Board expects continued rapid growth in the business.'

"continued rapid growth in the business.".............That has got to be stretching the truth a little bit & the share price certainly doesn't reflect that. Hopefully rapid growth to come soon, imo.

An 81% increase in sales, maintained gross margin and a significant move towards profitability all look pretty good to me.

Get your buying boots on, anything sub 1p, is a bargain.