Company Update
2 May 2024
Microsaic Systems plc
("Microsaic" or the "Company")
Company update
Microsaic Systems plc (AIM: MSYS), the developer of micro-electronic instruments and provider of Modern Water analytical solutions is pleased to announce the following update.
On 27 March 2024, the Company announced that in Qatar, 27 Continuous Toxicity Monitoring instruments ("CTMs") previously delivered by Modern Water are to be installed by our local distributor to monitor Doha's public water system continually by online testing. Microsaic is pleased to confirm that the Company has now received a new purchase order to the value of €571k from this local distributor to supply associated equipment and consumable items for the existing CTM instruments. We expect most of the goods to be delivered within 2024 with invoicing expected to start by the end of June. The goods being supplied for the CTMs include MicroTox® reagents which are manufactured exclusively by the Company and tubing kits for which manufacture is outsourced and the supply of which is also exclusively from the Company. This represents a strong source of recurring revenue as the ongoing operation of the CTMs requires continual supply of these essential consumable items.
Building on its existing platform in Qatar, the Company is now targeting the wider Gulf States region to supply its broad range of fluid and water testing solutions. Microsaic will target this market through a combination of its newly acquired Modern Water continuous monitoring technology for rapid online detection of toxins, together with the detailed analysis that can be provided by the Company's miniaturised mass spectrometer 4500MiD® instrument. Many Gulf States and other countries, particularly those that are moving towards piped water distribution rather than supply in plastic bottles, have difficulty in accurately monitoring the safety of potable (including desalinated) water. Supply downtime due to water contamination is a serious risk for all water-stressed countries and the Company is well positioned to provide a 'total' testing solution for this issue.
Microsaic's existing stock of MicroTox® reagent is already being shipped to customers and the laboratory in York England is preparing to start manufacturing new MicroTox® reagent next week, to replenish stock and to meet sales demand.
Given a growing enquiry and sales pipeline developing for the supply of the LX and FX CTM instruments, Microsaic has recently commissioned GX Group in Usk, Wales, its outsourced manufacturer, to modify and update the electronics that control these instruments. This will streamline the manufacturing process for equipment sales expected to start later this year and broadens the supply chain, increasing the profitability of the instruments.
The Company continues to build on its analytical testing business model by integrating the recently acquired Modern Water and Microsaic Systems technologies. This model provides solutions for toxicity testing ranging from the increasing problem of monitoring water contamination to the detection of PFAS (forever chemicals). Mass spectrometry is the only technology that can monitor PFAS to the extremely low concentration levels announced by the US Environmental Protection Agency on 10 April 2024, which varies from 10 parts down to 4 parts per trillion depending on the PFAS chemical targeted. Microsaic considers that its PFAS detector, built around the 4500MiD®, is an ideally positioned detection solution. It is a compact, lower cost and easily operated low energy instrument which can be sited at the point of testing for customers as opposed to needing to transport samples to large, energy-intensive and comparatively very expensive laboratory-based machines. Microsaic continues to pursue its PFAS detector testing programme aimed at equipment manufacturers and distributors, with the objective of positioning the Company to take a leading position in the US market for PFAS detection and monitoring together with dedicated partners.
Bob Moore, Acting Executive Chairman of Microsaic, commented:
"We are delighted to have signed a new purchase order with our local distributor to supply consumables and associated equipment for our project in Qatar. This demonstrates the determination of the Company to deliver on our reset objectives and develop much wider analytical capabilities and solutions. We intend to build on this by scaling up supply capabilities for our newly acquired wider range of instruments and their consumable kits based on proven technology. Increasing the installed base of equipment over time will support the growth of recurring income streams from consumables."
This announcement contains inside information for the purposes of the UK version of the Market Abuse Regulation ("MAR") which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018; as amended. Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR.
The person responsible for arranging the release of this Announcement on behalf of the Company is Bob Moore, Acting Executive Chairman of the Company.
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Microsaic Systems plc Bob Moore, Acting Executive Chairman |
+44 (0) 20 3657 0050 via TPI |
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Singer Capital Markets (Nominated Adviser) Aubrey Powell / Angus Campbell / Oliver Platts |
+44 (0)20 7496 3000 |
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Turner Pope Investments (TPI) Limited (Broker) Andy Thacker / James Pope |
+44 (0) 20 3657 0050 |
About Microsaic Systems and Modern Water
Microsaic has over 20 years' experience in microelectronics and development of instrumentation and having acquired the Modern Water business has reset, diversified and widened its capabilities into broader based analytical equipment supply and services. The Company has an extensive existing and newly acquired innovative patent portfolio in industry-leading technology designed and developed for "Industry 4.0" application serving markets in diversified Industries, Human and Environmental Health. Microsaic's micro-mass spectrometer system and water testing solutions enables analytical detection and characterisation at the point-of-need, whether within a mobile testing capability, conventional laboratory setting, or within a bioprocessing facility for continuous detection of data at multiple steps in the process workflow.
Microsaic's products and solutions are commercially available through global markets via a network of regional and local partners, targeting its core laboratory, manufacturing and point-of-need applications.
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