26 Jul 2019 07:00
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
26 July 2019
Remote Monitored Systems plc ("Remote Monitored Systems", the "Company" or the "Group")
GyroMetric Systems Operational Update
Remote Monitored Systems plc, the AIM quoted survey, inspection and monitoring company, is pleased to announce an update on its GyroMetric Systems Limited ("GyroMetric") business where it owns a 58% interest.
Overview
GyroMetric's products are gaining considerable interest in several markets - marine drive systems, oil & gas, and wind turbines - and a growing installed base in the first of these. These expressions of interest vary from strategic applications at the heart of large corporate developments to immediate needs for specific problems to be solved. What they have in common is that the potential customers are very large corporations which move relatively slowly even when the problem is immediate and budget is available. A little more than 18 months ago GyroMetric moved out from its first customer base in marine drives where it had strong validation of its products in mission critical applications, to develop interest in much larger markets at a very senior level. This has been particularly effective in the offshore wind turbine market but these projects take time to develop.
GyroMetric has had to learn to manage both the longer term strategic opportunities as they develop while applying a different focus to winning orders in the 'low hanging fruit' areas. The good news is that GyroMetric's partners in the latter markets are gearing up the training of their sales teams to expand sales of our products and in the strategic opportunities GyroMetric is either already under contract for test installations or actively involved with the teams planning them.
Marine Drives
GyroMetric has received new orders for new-build installations for the company's longest standing end customer. The link below shows recent news coverage with specific mention of GyroMetric's product which has been branded 'Safeguard Basic' by the channel partner. https://www.maritime-executive.com/corporate/ten-tugs-equipped-with-schottel-rudderpropellers
Recently GyroMetric has been directly involved with the primary channel to the marine drives market to train their sales force for an autumn launch of GyroMetric's standard product. This will extend the value of the product from its current use in safeguarding drive shafts into the wider analysis of firing in large diesel drive systems and generators, torque measurement, and the diagnosis of recurring problems.
In parallel with this GyroMetric is in discussions with one of the largest suppliers of marine diesels - their declared intention is to install our systems on two of their ships for trials before potentially rolling this out to up to 900 ships.
The driving force behind these opportunities is the need to maximise operating efficiency and minimise the environmental impact of large ocean-going ships of the future. Conventional monitoring systems are unable to provide the real-time control that GyroMetric can offer.
Oil & Gas
GyroMetric has signed a contract with a well-known UK industrial group to provide test instrumentation at their facilities and this is on track for delivery by September. The mutual intention of this test is a) to validate GyroMetric's technology for use in many applications across the markets the group addresses including oil and gas and b) to work out the best form of partnership. Once the test results start to flow GyroMetric expects to receive orders for specific applications as well as assessing how GyroMetric's technology might influence future product design. Field diagnosis of recurring problems is of particular interest and GyroMetric's new laser sensor has particular value in ease of installation.
GyroMetric has designed a new monitoring system for oil field mud pumps in cooperation with Oil and Gas industry specialists. These pumps play a critical role in drilling systems. They typically weigh around 27 tonnes and operate in a highly abrasive environment. There are estimated to be almost 1,000 drilling rigs available for operations around the world, each of which has at least 2 mud pumps. A mud pump costs approximately $60,000. The capital cost is however dwarfed by the maintenance costs and associated down time for the rig when a pump fails. Non-productive time ("NPT") can cost between $8,000 to $15,000 per day onshore and very much more offshore, meaning higher availability is a continuing requirement of drill operations and can command a premium. The new monitoring system designed by GyroMetric generates rotational reference and provides information on the bearings. This is combined with more conventional sensors, including pressure and temperature measurement. The two sets of data flows used with AI algorithms provide a powerful tool to reduce the very high running costs and reduce drilling down time for oil and gas operations.
Offshore Wind Turbines
GyroMetric is working with two major manufacturers of offshore wind turbines. GyroMetric has been able to develop close working relationships with both companies in order to define the part GyroMetric can play in large turbine trials, however the timescale for these trials is quite extended and inevitably subject to delays outside the company's control. GyroMetric has had confirmation that it is the supplier of choice to instrument the largest and most imminent trial which is expected to commence in late 2019. GyroMetric has the advantage of having already completed a highly successful trial at the ORE Catapult facility in Blyth in 2018 and this was well publicised to the wind industry.
In parallel GyroMetric is already in discussions with the largest offshore wind turbine operator in the world to discuss their priorities for maximising output from these fields and minimising operating costs. We believe that GyroMetric has a unique contribution to make to providing the management information needed by operators to achieve this.
Development/New Products
There have been two key projects completed by GyroMetric's development team that are expected open new markets and reduce costs. The first is a Universal Bearing Monitor that can be applied much more widely with greatly reduced installation and support costs. The second is the development of a Laser Sensor, that can be used instead of induction sensors in some installations. The Laser Sensor can be fitted at a greater distance from the encoder from which it gathers data and can be built at a fraction of the cost of currently available laser sensors. The new sensor is close to production and general availability.
Trevor Brown, Executive Director of RMS commented "GyroMetric continues to find new markets and applications for its unique technology, some of which have become apparent only recently. This process of exploring new applications continues apace and we expect to provide further updates to shareholders as matters progress. It is clear that the potential uses for GyroMetric's remote monitoring products are already exceeding our original expectations."
ENQUIRIES:
Remote Monitored Systems plc
Trevor Brown (Executive Director) +41 7941 55384
Nigel Burton (Non-Executive Chairman) +44 7785 234447
SP Angel Corporate Finance LLP
Nominated Adviser and joint broker +44 20 3470 0470
Stuart Gledhill
Jeff Keating
Caroline Rowe
Peterhouse Corporate Finance
Joint broker +44 20 7469 0930
Lucy Williams
Fungai Ndoro