Modern Water Q2 orders exceed £3m post COVID restrictions in China & South Asia
New monitoring and membrane revenues secured in high value microchip fabrication sector
DeepVerge plc (AIM: DVRG), is pleased to announce that Modern Water has secured Q2 orders in excess of £3m in China and South Asia for delivery during the current financial year. Significant sales of water monitoring and membrane water recovery have been secured with Tier 1 partners. This includes a new vertical in the technology sector, specifically microchip fabrication manufacturers, opening up a very large new vertical worldwide market for the Modern Water division .
The Modern Water sales teams in US, the EU, China and South Asia have put strategies in place to diversify which has led to the opening up of new verticals and growth in new markets. This focus has resulted in a number of significant seven figure deals across the markets of South Asia and the Middle East.
Gerard Brandon CEO DeepVerge plc, commented:
“Chinese and South Asian markets have been challenging because our staff, customer staff, partner staff and staff of collaborators that we’re in negotiation with, have been rolling in and out of lockdowns for the best part of two years. Whilst we have continued to generate business, communication between teams, as well as supply chains, has been challenging. However through our drive to build the business and the intensity of our marketing and selling strategy, mostly online, we are now seeing a rebound as a result of pent up demand which is putting the market back on track.
W e changed the business model in Modern Water from selling lower ticket equipment to medium and large enterprise solution sales. Investment was targeted to upgrading existing Microtox and Microtrace equipment, adding more efficient data aggregation capabilities, interfacing with third party systems and integrating with large SCADA operational management systems. Sales focus has been to identify partners capable of making larger solution sales and training their staff to sell our new offering. This strategy is now gaining traction and we continue to build our presence as a world leading water testing solutions provider.”
Related party transaction
DeepVerge’s subsidiary, Innovenn UK Limited, has signed a second Statement of Work (“Further Order”) with Microsaic Systems plc (“Microsaic”) under the previously announced Manufacturing Services Framework Agreement (“MFSA”) between the same parties. This contract has a value of approximately £600,000 and constitutes a related party transaction for DeepVerge under Rule 13 of the AIM Rules for Companies, by virtue of its size and Microsaic and DeepVerge having two directors in common.
At the time of entering into the MFSA, the independent directors (being all the directors of DeepVerge save for Gerard Brandon and Nigel Burton who are also directors of Microsaic) considered, having consulted with the Company’s nominated adviser, that the terms of the MFSA and an initial order under its terms were fair and reasonable insofar as the Company’s shareholders are concerned. The independent directors also consider that the terms of the Further Order are consistent with the terms of both the MSFA and the initial order thereunder, and therefore considers the terms of the Further Order to be fair and reasonable insofar as shareholders are concerned.
Gerard Brandon, CEO
+44 (0) 7340 055 648
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