REG - Deepverge PLC - DeepVerge Q1 production orders up 39% to £5m

DeepvergeAnnouncement

11/03/2022 07:00

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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         +44 (0) 7340 055 648

 SPARK Advisory Partners Limited                 Neil Baldwin/Andrew Emmott  +44 (0) 113 370 8974

 (Nominated Adviser)

 Turner Pope Investments (TPI) Limited (Broker)  Andy Thacker/James Pope     +44 (0) 20 3657 0050

 

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.

 

 

 

 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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