DeepVerge Q1 production orders up 39% to £5m

RNS Number : 4276E

Deepverge PLC

11 March 2022

 

11 March 2022

DeepVerge PLC

("DeepVerge" or "the Company")

DeepVerge production orders up 39% worth £5m for Modern Water equipment in Q1

Additional installations and extension to wastewater COVID detection trial

Multi-year serviced install and monitoring to increase equipment only sales income by 140%

DeepVerge (LSE:DVRG.L) environmental division, Modern Water, announces production orders up 39% in Q1, worth c£5m (Q1:2021 £3.6m RNS[i]: 17th Feb 2021)) for a range of drinking water testing, contamination and detection of SARS-CoV-2 equipment. This is the biggest Q1 production order ever in Modern Water history and the equipment is expected to be delivered during the current financial year.

This equipment is across the range and earmarked for sites including the UK, the EU, China, India and the Middle East. The range of equipment includes Microtox^®PD, for real-time detection of SARS-CoV-2 in wastewater treatment plants adding to existing data sampling units installed last year (RNS[ii]: 28th October 2021), extending the trials to April this year.

New multi-year installation, monitoring and maintenance recurring revenue model is designed to increase revenue of the existing install-only equipment sales model by 140%. There are 27 Microtox^® CTM to be installed in the Middle East and this is the first move away from capital expenditure sales only to multi-year install, monitor and maintain with consumables ("Serviced Lease"), generating recurring revenues of $2.4m (£1.83m)* over a 5 year period in place of a $1m (£0.76m) capital equipment sale. As we transition to the monitoring, we still deliver units, such as those for a Chinese State government department and multiple units on the Yangtze River project which are capital equipment sales.  

Gerry Brandon CEO DeepVerge plc commented:

"Our Modern Water division continues to grow with the biggest Q1 production order to date,  increasing by 39% over Q1, 2021, for existing Microtox® (LX, FX and CTM), Microtrace (trace metal) units and new pathogen detection units, which will go into mass production in the next few months. This is due to the positive test results with Microtox^®PD wastewater detection just beginning to realise their full potential with proven market demand having already contributed to part of last year's revenues.

The multi-year lease, monitoring and maintenance recurring revenue business model overcomes the seasonal financial cashflow problems experienced by Modern Water when it was a capital equipment sales business. Support and maintenance costs are built into the annual operating expenditure of the client. It offers additional sales opportunities with an established installed base around the world where the Company can offer upgrades and upsell higher value equipment without capital spend by the client, increasing  revenues from the value-added real-time monitoring service"

*Serviced Lease explanation: Of the £5m production orders, 27 Microtox CTM units with a sales value of $1.08m are to be installed on a 60 month serviced lease with monitoring and consumables at $40,000 per month. This is $480,000 over the first 12 months from installation date resulting in $2.4m over 5-years.

For further information please contact:

DeepVerge plc	Gerard Brandon, CEO	[phone]
SPARK Advisory Partners Limited (Nominated Adviser)	Neil Baldwin/Andrew Emmott	[phone]
Turner Pope Investments (TPI) Limited (Broker)	Andy Thacker/James Pope	[phone]

Market Abuse Regulation (MAR) Disclosure

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

About DeepVerge plc (www.deepverge.com)

DeepVerge is an environmental and life science group of companies that develops and applies AI and IoT technology to analytical instruments for the analysis and identification of bacteria, virus and toxins. Utilising artificial intelligent data analytics to scientifically prove the impact of skincare product claims on skin microbiome for most of the top 20 global cosmetic company clients and remotely detect and identify in real-time, dangerous pathogens in wastewater treatment plants, drinking water, rivers, lakes and reservoirs.

About Modern Water (www.modernwater.com)

Modern Water is the environmental division of DeepVerge that has developed and commercialised cutting-edge technology, focused on monitoring of contaminated water and decontamination of wastewater, making recycling of water more efficient. Six countries across the world have legislated that Modern Water monitoring test systems are written into their environmental protection legislation. The division offers an automated real-time contamination detection range of equipment, including Microtox® PD, for the identification of SARS-CoV-2 hotspots and other pathogens in wastewater.

 

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[i] https://www.londonstockexchange.com/news-article/DVRG/prod-n-orders-worth-5m-for-modern-water-equipment/14867523

[ii] https://www.londonstockexchange.com/news-article/DVRG/microtox-r-pd-installations-as-part-of-nat-l-trial/15190144

 

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