Water Intel. Regulatory News (WATR)

31 Mar 2005 07:01

Qonnectis plc31 March 2005 FOR IMMEDIATE RELEASE 31 March 2005 Qonnectis plc INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 Qonnectis plc ("Qonnectis" or "the Company"; stock code: QTI), the telematicsand IT services provider to the utility markets, has announced its unauditedresults for the six months ended 31 December 2004. Highlights: • During the period under review, the Company's shares were traded on OFEX. On 24 February 2005, the Company was admitted to AIM and successfully raised £1.2 million net of expenses. • Operating losses narrowed to £357,368 from a loss of £530,896 in 2003. This was achieved despite a marked increase in sales and distribution costs year-on-year as Qonnectis began to commercialise its technology. • The Company announced the launch of a range of environmental solutions. Commenting on the results, Chairman, Richard Taylor said: "The Company has continued to make progress, with an improved level of newbusiness enquiries and repeat orders having been received from a number of ourkey utility and public sector customers. The successful fund raising will enableus to roll-out our automated meter reading and environmental monitoringsolutions." ### NOTES TO EDITORS About QonnectisQonnectis plc, listed on AIM (QTI), offers Internet-based energy and waterinformation management systems and services to the utilities markets and largeusers of energy and water within the private and public sector. Qonnectis provides remote data collection technology and analytical services tothe energy, water and environmental industries. Its technology providescommunications and data collection to any remote devices, such as energy metersor temperature sensors, via the Internet. Qonnectis' services enable utilitiesand end users to monitor their networks in real time, 24-hours a day. Althoughthe Company is at an early stage of commercialising its proprietary and patentedtechnology, it has won several important orders. In December 2003, Qonnectissecured its first order for Macao Water, a division of Suez Environment. In 2004Qonnectis received orders from Veolia Vivendi Generale des Eaux, Scottish Waterand the National Health Service. For further information, please contact: Sue Scott/Michael Padley, Bankside Consultants 020 7444 4140 CHAIRMAN'S STATEMENT This report covers the six month period to 31st December 2004 during which timethe Company's shares were traded on OFEX. On the 24th February 2005 the Companywas admitted to AIM and successfully raised £1.2 million net of expenses. During these six months new business was obtained from Generale des Eaux Lyonfollowing successful trials, and repeat orders were received from ScottishWater, Cambridge Water and the National Health Service (NHS). One of these clients was an NHS hospital who was able to realise a £180,000saving after Qonnectis' technology automatically identified a major water leak.Not unexpectedly, this has generated interest in other areas of the NHS whichhas lead to orders from additional hospitals. During the period the Qonnectis System was approved by DEFRA for admission tothe Qualified Water Technology List, which is a register of technologies andproducts that encourage sustainable water use; investment by businesses in suchproducts may qualify for 100 per cent. first year capital allowances. TheQonnectis System also qualifies for a similar scheme for energy savingtechnology managed by the Carbon Trust. In October 2004, Qonnectis was awarded a patent covering its Internet-based datacommunication system. This embraces the whole of Qonnectis' system from itsspecialist communication devices connected to remote machines for automatedmeter reading to its central servers. The funds raised in connection with the Company's admission to AIM will be usedfor working capital needs as the order size and frequency increases, to assistin expanding the customer base and showing them how they can achieve utilitysavings which qualified third parties have estimated in the range 5 per cent. to15 per cent. It will also facilitate the deployment of the environmentalmonitoring solution which will shortly be released to customers. With the fund raising complete, your Board now looks forward to deploying thetechnology and enabling customers to better control energy and water usage andto save money. Richard M Taylor 31 March 2005ChairmanQonnectis plc CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE SIX MONTHS ENDED 31 DECEMBER 2004 Note Unaudited Unaudited Audited six months to six months to 9 months to 31 December 31 December 30 June 2004 2003 2004 TURNOVER 26,050 6,480 25,128 Cost of Sales (17,845) (94,950) (34,590) ________ ________ ________ Gross Profit/(loss) 8,205 (88,470) (9,462) Sales & distribution costs (187,676) - (10,710) Administration expenses (177,897) (446,797) (570,184)Other operating income - 4,371 79 ________ ________ ________OPERATING LOSSContinuing operations (357,368) (530,896) (590,277) Net interest payable (6,888) (15,997) (5,926) ________ ________ ________ LOSS ON ORDINARY ACTIVITIESBEFORE TAXATION (364,256) (546,893) (596,203)Tax credit on loss onordinary activities 44,815 (20,000) - ________ ________ ________ LOSS ON ORDINARY ACTIVITIESAFTER TAXATION (319,441) (566,893) (596,203)Minority interest - - - ________ ________ ________ LOSS FOR THE PERIOD (319,441) (566,893) (596,203) ________ ________ ________ Loss per share - 3 (0.36p) (0.66p) (0.69p)basic and diluted ________ ________ ________ All activities derive from continuing operations CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2004 Note Unaudited at Unaudited at Audited at 31 December 31 December 30 June 2004 2003 2004 FIXED ASSETS Intangible assets 3,838,638 4,048,495 3,943,566 Tangible assets 1,139 6,202 2,656 ________ ________ ________ 3,839,777 4,054,697 3,946,222 CURRENT ASSETS Debtors 35,793 27,976 42,181 Cash at bank - 21,749 15,370 ________ ________ ________ 35,793 49,725 57,551 CREDITORS: amounts fallingdue within one year (483,312) (460,568) (274,074) ________ ________ ________ (447,519) (410,843) (216,523) ________ ________ ________ TOTAL ASSETS LESS CURRENTLIABILITIES 3,392,258 3,643,854 3,729,699 CREDITORS: amounts fallingdue after more than one year (96,000) (132,000) (114,000) ________ ________ ________ 3,296,258 3,511,854 3,615,699 ________ ________ ________ CAPITAL AND RESERVES Called up share capital 4 8,977,636 8,645,564 8,977,636Share premium account 4 756,002 584,573 756,002Profit and loss account 4 (6,437,380) (5,718,283) (6,117,939) ________ ________ ________ EQUITY SHAREHOLDERS' FUNDS 3,296,258 3,511,854 3,615,699 ________ ________ ________ CONSOLIDATED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 31 DECEMBER Note Unaudited Unaudited Audited six months to six months to 9 months to 31 December 31 December 2004 2003 30 June 2004 Net cashoutflow fromoperatingactivities 5 (125,228) (269,425) (556,978) Returns on investments andservicing of financeInterestreceived 268 684 862Interest paid (7,156) (16,681) (6,788) _______ _______ _______ Net cash outflow fromreturns oninvestmentsand servicingof finance (6,888) (15,997) (5,926)Taxation 44,815 (20,000) - Capital expenditurePayments toacquire fixedassets (934) - (2,615) _____ _______ ______ Net cashoutflow fromcapitalexpenditure (934) - (2,615) _____ _______ ______ Net cashoutflow beforefinancing (88,235) (305,422) (565,519) FinancingNew Loan - 150,000 -Issue of sharecapital - 17,682 521,183Repayment ofother longterm loan (18,000) - (27,000) _______ _______ _______ Net cashoutflow fromfinancing (18,000) 167,682 494,183 ________ ________ _______ (Decrease) incash in theperiod 6 (106,235) (137,740) (71,336) ________ ________ _______ Notes to the Financial Statements 1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS The financial statements have been prepared under the historical cost convention, and have been prepared in accordance with applicable accounting standards. The interim financial information has been prepared on the basis of accounting policies consistent with those applied in the 2004 financial statements. 2. FINANCIAL INFORMATION The financial information set out above does not constitute statutory accounts within the meaning of s.240 of the Companies Act 1985. 3. LOSS PER SHARE The basic loss per ordinary share has been calculated using the loss for the financial period of £319,441 (six months to 31 December 2003 - loss of £566,893; audited nine months to 30 June 2004 - loss of £596,203) and the weighted average number of ordinary shares in issue of 89,616,284 (six months to 31 December 2003 - 86,311,493; audited nine months to 30 June 2004 - 87,028,089). 4. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS Called up share Share Profit Total capital premium and loss £'000 £'000 account account £'000 £'000GroupAt 1 July 2004 8,977,636 756,002 (6,117,939) 3,615,699Loss for the period - - (319,441) (319,441) --------- ------- --------- ---------At 31 December 2004 8,977,636 756,002 (6,437,380) 3,296,258 ========= ======= ========= ========= 5. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW Unaudited Unaudited Audited six months to six months to 9 months to 31 December 31 December 30 June 2004 2003 2004 Operating loss (357,368) (530,896) (590,277)Depreciation 2,450 8,451 7,257Amortisation of intangibleassets 104,929 104,929 157,393(Increase) / decrease in debtors 6,388 103,692 (1,344)Increase / (decrease) increditors 118,373 44,399 (130,007) ------- -------- -------- (125,228) (269,425) (556,978) ======= ======== ========= 6. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Unaudited Unaudited Audited six months to six months to 9 months to 31 December 31 December 30 June 2004 2003 2004 Increase/(decrease) in cash inthe period (106,235) (137,740) (71,336) Cash outflow/(inflow) fromdecrease/(increase) in debt 18,000 (150,000) 27,000 -------- --------- ------Movement in net debt in theperiod (88,235) (287,740) (44,336)Net debt at start of period (143,140) 159,489 (98,804) --------- -------- ---------Net debt at end of period (231,375) (128,251) (143,140) ========= ========= ========= 7. ANALYSIS OF NET DEBT At 1 July Movement At 31 December 2004 2004 Cash 15,370 (15,370) -Overdraft (8,510) (90,865) (99,375) ______ ________ ________ 6,860 (106,235) (99,375) Loan (150,000) 18,000 (132,000) ________ _______ ________ (143,140) (88,235) (231,375) ________ _______ ________ ENDS This information is provided by RNS The company news service from the London Stock Exchange