Otaq Share Discussion Threads

[serratia] 23/3/2022 15:23

I'm not invested but watching.Two factors hold me back - The approval or otherwise re the use of their kit to deter seals in Scotland and the fact that they always seem to be giving themselves shares but I haven't checked the detail on that.

[leeterry] 23/3/2022 14:17

Hedgehog, considering all the positive news you are posting, what do you think is driving the share price weakness?

[hedgehog 100] 18/3/2022 17:08

OTAQ has multiple revenue streams, and strong revenue growth looks likely on a number of product fronts.

In particular, there are two products that in aggregate could potentially deliver revenue growth of say c. £2M. in OTAQ's coming financial year, which would be a step change in the company's turnover:

1. OTAQ sonars to Minnowtech.

Hedgehog 100 9 Feb '22 - 20:20 - 38 of 45 Edit 0 0 0
" ... So 127 OTAQ sonars to Minnowtech will deliver over £200K. of revenue to OTAQ in its H2 to 31.3.22.
If a high three figure number of sonars are expected to be supplied in 2022, say 800, then that would mean 700 in April-December 2022.
Which on the basis of over £200K. for 127, would suggest over £1.1M. for a further 700."

2. OTAQ Sealfence systems in Chile.

20/07/2021 06:00 UK Regulatory (RNS & others) OTAQ PLC Final Results LSE:OTAQ Otaq Plc
" ... Final Results for the year ended 31 March 2021.
... In the meantime, our ADDs are being deployed in increasing numbers in Chile, notwithstanding the ongoing Covid biosecurity restrictions that are in place. The number of operational ADDs in that market has increased from 142 as at April 2020 to 264 at the end of June 2021 and several large-scale trials are currently underway utilising our technology. The Chilean aquaculture market is substantial and estimated to be over three times larger than the Scottish market where we are currently most active. We look forward to further growth of our ADDs in Chile and other geographic markets where similar trials are currently underway and the regulatory framework is more settled. ... "


15/12/2021 07:00 UK Regulatory (RNS & others) OTAQ PLC Interim Results LSE:OTAQ Otaq Plc
" ... Interim Results for six months to 30 September 2021
...288 Sealfence units rented by Chilean customers in the period ...
Post-Period Highlights
-- Successful conclusion of a six-month ADD trial with a major Chilean salmon farmer ...
The successful conclusion in October 2021 of a six-month trial with a major Chilean salmon farmer has resulted in discussions about a further rollout to the customer's sites. ...
As a result of the Group diversifying and developing its interests outside of the Scottish salmon market, Chile has seen growth in the first half of the year and the recent successful conclusion of a six-month trial with a major Chilean salmon farmer is expected to lead to increased growth in Chile in the second half of the year and beyond. ..."



So potentially an increase in OTAQ's annual turnover of c. 50% or more, from about £4M. to £6M.+.

And potentially also a very strong move into pre-tax profitability.

[hedgehog 100] 18/3/2022 14:33

20/07/2021 06:00 UK Regulatory (RNS & others) OTAQ PLC Final Results LSE:OTAQ Otaq Plc
"... Final Results for the year ended 31 March 2021.
... 18.5% increase in revenue to GBP4.05m (FY2020: GBP3.42m) ..."


15/12/2021 07:00 UK Regulatory (RNS & others) OTAQ PLC Interim Results LSE:OTAQ Otaq Plc
"... Revenues for six months to 30 September 2021 of GBP1.8m (H1 FY21: GBP2.0m) ...
The Board anticipates that revenues for the full year will be broadly in line with the full year to 31 March 2021,..."



OTAQ's financial year ends in just a fortnight, and they appear to be expecting a strong second half recovery.

Full year revenue of about £4.05M. is expected, i.e. about the same as last year.

Following on from H1 revenue of £1.8M., this would suggest H2 revenue of about £2.25M.

Which would be an impressive half-on-half increase about £450K., i.e. a c. 25% rise.

[hedgehog 100] 18/3/2022 12:36

Both of OTAQ's branches of operation are in sectors with a bullish outlook this year:

1. Aquaculture.
Surging food prices should benefit primary food producers such as salmon & shrimp farmers.

2. Energy (oil & gas, and renewable).
Surging oil & energy prices are creating boom conditions for producers.

So whereas for other sectors these inflationary pressures may be business challenges to be wary of, for OTAQ they are positives.

In addition, OTAQ now has minimal negative exposure to the passing COVID-19 pandemic, or to the Ukraine-Russia war and its fallouts.


So with a challenging stock market outlook for the majority of companies and sectors, OTAQ looks to be in the ideal businesses at the moment.

[hedgehog 100] 17/3/2022 18:35

Last month OTAQ also further expanded their team, in a move which further highlights the very bullish outlook for the company:

"OTAQ AQUACULTURE INTRODUCE NEW BUSINESS DEVELOPMENT MANAGER ROLE
03/02/2022

We are pleased to announce the appointment of Gareth Hammond as Business Development Manager for OTAQ’s Aquaculture division as part of our continued commercial expansion strategy.

Gareth, who joins us from Vaki where he was managing their fish counter and net pen aeration UK and Ireland business for over five years, said “My focus is to promote and grow the Aquaculture business for OTAQ’s expanding product portfolio within the industry globally. OTAQ’s approach towards innovative technology and collaborative working with customers to find practical solutions that improve their operational efficiencies are key reasons for me wanting to join the OTAQ team. I look forward to getting involved.”

Our Chief Commercial Officer, Richard Beesley, who joined OTAQ in August 2021 said, “Gareth’s appointment is an important step in our overall growth strategy for the Aquaculture market. With his wealth of knowledge and experience in fish farming technologies and operations, as well as his enthusiasm to bring innovative solutions to market, Gareth is a great fit and we are very pleased to have him join the team.”

As well as expanding sales on OTAQ’s existing products such as our acoustic deterrent system Sealfence, underwater IP cameras and laser measurement systems, Gareth will be focused on the introduction of exciting new OTAQ marine technologies that will be coming to the market within the next 12 months.

For any queries relating to our product range and sales please contact [e-mail]

26/01/2022"

[hedgehog 100] 17/3/2022 13:54

Minnowtech have just further expanded their team, following on from their significant expansion last year:

"MINNOWTECH ANNOUNCES HIRING OF DANIEL NAFARRETE AS AQUACULTURE R&D TECHNICIAN
3/15/2022

​Nafarrete brings his technology skills and experience to applying Minnowtech’s sonar-based system at a shrimp farm in Kauai

March 15, 2022, Kekaha, HI – Minnowtech, an aquaculture technology company that enables shrimp farmers to calculate shrimp abundance for optimizing feed and harvest, today announced the hiring of Daniel Nafarrete as Aquaculture R&D Technician, located at the company’s Kekaha office on the Hawaiian island of Kauai."




This supports the likelihood of 2022 being a very exciting one for Minnowtech, as it moves strongly into its commercialisation phase.

Which of course is great for OTAQ, Minnowtech's partner and part-owner.

[hedgehog 100] 16/3/2022 17:20

"Global demand for Scottish salmon sees a near return to export sales record

By Calum MacLeod - [e-mail]
Published: 12:27, 11 February 2022 | Updated: 12:29, 11 February 2022

Scottish salmon exports recovered to near-record figures in 2021, according to new figures released by the UK Government.

Cementing its place as the UK’s biggest food export, salmon overseas sales increased to £614 million, up 36 per cent compared to 2020 and only marginally below the £618 million recorded in 2019.

The official HMRC figures have demonstrated the strong global demand for Scotland’s unrivalled farm-raised salmon. ..."




From 2009, but still relevant now:

" ... It is often said that salmon sells well in difficult economic times. This seems to be true also in the EU during the current economic downturn. Probably the reason is that salmon, despite the significant rise in prices, remains a competitive and attractive seafood product, and given its high penetration in both the food service and retail channels, especially at the medium-level price segments, sales are hurt less than those of other species that are targeting more price-sensitive consumers. ..."

[hedgehog 100] 28/2/2022 17:45

Worrying and sad times globally, with the Russian invasion of Ukraine four days ago.

The cost in human life and suffering, and the destruction, puts other issues into perspective.

That said, the financial sanctions against Russia could potentially impact upon all companies doing significant business in that country.

OTAQ has sold some Sealfence systems in Russia, however this is a small minority of its business, so should not be a major issue.

From the Hertsford Capital plc (then to be renamed OTAQ plc) prospectus (dated 24 March 2020):

"Aquaculture

The first aquaculture product which the Existing OTAQ Group has marketed is Sealfence which was launched in 2013.

Sealfence is an ultrasonic deterrent system designed to deter seals and sea lions from marine fish farming sites. Since the first sale of a Sealfence system in 2013, the number of systems in operation has grown rapidly and at 31 December 2019, the Existing OTAQ Group had a base of 1,164 systems on long-term rental contracts (12 at 31 March 2015) and a further 72 systems have been sold in Russia and Finland. ..."

[hedgehog 100] 09/2/2022 20:49

Meanwhile, new regulation of ADDs (acoustic deterrent devices) will support the adoption of more modern ADDs such as OTAQ's Sealfence, which can operate at lower volumes and frequencies:

15/12/2021 07:00 UK Regulatory (RNS & others) OTAQ PLC Interim Results LSE:OTAQ Otaq Plc
" ... The Group also believes that Sealfence is compliant with the updated United States Marine Mammals Protection Act which will be fully enacted in January 2022. This will potentially open up the business development opportunities in North America and Norway as salmon exports to the USA are required to comply with the act which requires no marine animals to be harmed in the farming of salmon. ..."

[hedgehog 100] 09/2/2022 20:20

Looks like Minnowtech is moving strongly into its commercialisation phase:

BUGSS @BUGSSlab·3h
"Learn how Minnowtech uses sonar to help aqua-farmers raise the shrimp that ends on your dinner plates. This free event happens THIS WEEK online! Register here: hxxps://wfy.ai/3srRrkU #minnowtech #shrimp #aquaculture "



Which is great news for OTAQ:

15/12/2021 07:00 UK Regulatory (RNS & others) OTAQ PLC Interim Results LSE:OTAQ Otaq Plc
"... OTAQ's investment in the shrimp industry through Minnowtech LLC will see additional revenue in the second half of the year with 27 sonars delivered to Minnowtech by December 2021 and an order placed for 100 more to be delivered in Q4. This will deliver over GBP0.2m of revenue. Minnowtech's business plans forecast rollout of a high three figure number of sonars, which will be supplied by OTAQ, in the 2022 calendar year. ..."


So 127 OTAQ sonars to Minnowtech will deliver over £200K. of revenue to OTAQ in its H2 to 31.3.22.

If a high three figure number of sonars are expected to be supplied in 2022, say 800, then that would mean 700 in April-December 2022.
Which on the basis of over £200K. for 127, would suggest over £1.1M. for a further 700.

[hedgehog 100] 21/1/2022 17:02

A bullish update from related company Ashtead Technology this week, together with a 42% rise from its November IPO at 162p (currently 230p), bodes well for OTAQ's performance this year.


18/01/2022 07:00 UKREG Ashtead Technology Holdings plc Year End Trading Update

"Strong performance for the full year following successful IPO in November 2021

Ashtead Technology Holdings plc (AIM: AT.), a leading subsea equipment rental and solutions provider for the global offshore energy sector, today provides an update on its financial performance for the year ended 31 December 2021.

The Company performed strongly throughout the year, benefitting from improving market conditions across both the Company's offshore wind and oil and gas end markets. Unaudited full year revenues are expected to be approximately GBP55m, up 30% on the prior year and ahead of the Board's previous guidance.

This outperformance was driven by both equipment rental and a higher than anticipated level of new equipment sales in the fourth quarter, driven by customer demand. Equipment rental has seen improved utilisation, and a recovery in pricing from the prior year impact of COVID-19.

The Company's margins were in line with its expectations when accounting for a slightly greater contribution from equipment sales. Accordingly, Adjusted EBITDA is expected to be modestly ahead of previous guidance with Adjusted EBITA comfortably ahead.

Allan Pirie, Chief Executive Officer, said:

"We are pleased with the full year performance which demonstrates the momentum in our business, delivering on what we set out at our IPO. We remain confident that Ashtead Technology is ideally positioned to support energy producers' transition to more renewable sources of energy and benefit from the global investment into offshore wind. We look forward to continued progress through 2022.""




Ashtead Technology (AT.):

[hedgehog 100] 12/1/2022 09:25

Nigel Wray has increased his holding in OTAQ, from 4,576,232 shares to 5,964,868 shares.
So it looks like he has bought 1,388,636 shares in the recent placing, at 22p each, = £305,499.92.

11/01/2022 16:45 UK Regulatory (RNS & others) Holding(s) in Company LSE:OTAQ Otaq Plc
"... 3. Details of person subject to the notification obligation iv
Name NIGEL WRAY
City and country of registered office (if applicable) LONDON
4. Full name of shareholder(s) (if different from 3.) v
Name JARVIS INVESTMENT MANAGEMENT LIMITED
City and country of registered office (if applicable) LONDON
5. Date on which the threshold was crossed or reached vi: 11 JANUARY 2022
6. Date on which issuer notified (DD/MM/YYYY): 11 JANUARY 2022 ...
Resulting situation on the date on which threshold was crossed or reached
15.83% 15.83% 5,964,868
Position of previous notification (if applicable)
14.58% 14.58% ..."


18/08/2021 14:46 UK Regulatory (RNS & others) OTAQ Plc: Holdings in Company LSE:OTAQ Otaq Plc
"... 3. Details of person subject to the notification obligation iv
Name NIGEL WRAY
... Resulting situation on the date on which threshold was crossed or reached
14.58% 14.58% 4,576,232 ..."

[hedgehog 100] 10/1/2022 12:49

10/01/2022 10:30 UKREG Result of GM, Completion of Placing, Issue of Equity, TVR & PDMR Dealing

OTAQ, the marine technology products and solutions group for the global aquaculture and offshore oil and gas industries, confirms that all resolutions put to shareholders at the General Meeting held earlier today in connection with the Placing announced on 15 December 2021, were duly passed on a poll. ...

The Placing remains conditional, inter alia, upon Admission (as defined below) and the Placing Agreement not being terminated in accordance with its terms.

Completion of Placing and Issue of Equity

Under the terms of the Placing the Company has raised net proceeds of GBP1.23 million which will strengthen the Company's balance sheet and meet its near-term working capital requirements to enable the Company to take advantage of the significant accessible opportunities available to OTAQ in its target addressable markets.

Application has been made for the Placing Shares to be admitted to listing on the standard segment of the Official List and to trading on London Stock Exchange, the London Stock Exchange's main market for listed securities. It is expected that admission of the Placing Shares will become effective and dealings in the Placing Shares will commence at 8.00 a.m. on or around 11 January 2022 ("Admission"). ...

[hedgehog 100] 15/12/2021 19:00

5/12/2021 07:05 UK Regulatory (RNS & others) Proposed Placing LSE:OTAQ Otaq Plc

Proposed placing by way of an accelerated bookbuild to raise GBP1.38 million

OTAQ, the marine technology products and solutions group for the global aquaculture and offshore oil and gas industries, today announces its intention to conduct a placing (the "Placing") to raise gross proceeds of GBP1.38 million through the issue of 6,272,729 new ordinary shares in the capital of the Company (the "Placing Shares") to investors at a placing price of 22 pence per Placing Share (the "Placing Price").

The Placing will be conducted in accordance with the terms and conditions set out in the Appendix to this announcement through an accelerated bookbuild process (the "Bookbuild") which will be launched immediately following release of this placing announcement (the "Announcement").

In conjunction with the Placing, certain Directors of the Company intend to subscribe for Placing Shares at the Placing Price. It is anticipated that the total proceeds of such participation will amount to approximately GBP75,000.

Dowgate Capital Limited ("Dowgate") is acting as Sole Broker in connection with the Placing.

Summary and Highlights

The Placing is required in order to address the OTAQ's near-term working capital needs, strengthen the Company's balance sheet and to take advantage of the significant accessible opportunities which the Board believes are available to OTAQ in its addressable markets.

The Placing is subject to the approval by the Company's shareholders of the resolutions to be proposed at a General Meeting (as defined below) of the Company (the "Resolutions"). The Company expects to publish a circular in connection with the Placing in the coming days (the "Circular").

Phil Newby, Chief Executive Officer of OTAQ, said: "This is an exciting time for the business. Having established a portfolio of internally-developed technologies, we have a number of growth opportunities that we are looking to maximise in 2022. Continued development and investment will underpin expected growth in existing and new markets, enabling the Company to establish new revenue streams that will afford increased visibility. We very much look forward to the next stage of our development and believe we are well placed to deliver against our ambitions."




15/12/2021 10:30 UK Regulatory (RNS & others) Result of Placing LSE:OTAQ Otaq Plc

OTAQ, the marine technology products and solutions group for the global aquaculture and offshore oil and gas industries, is pleased to announce that it has conditionally raised GBP1.38 million via the Placing announced earlier today through the issue of 6,272,729 Placing Shares with new and existing institutional and other investors at the Placing Price. The net proceeds of the Placing are estimated to be approximately GBP1.23 million.

The Placing Price of 22 pence per share represented a discount of 10.2 per cent. to the closing price of 24.5 pence per existing ordinary share of 15 pence each in the Company ("Ordinary Shares") on 14 December 2021, being the last business day prior to this announcement. The Placing Shares will represent approximately 19.9 per cent. of the Company's existing share capital.

Pursuant to the Placing, certain Directors of the Company have agreed to subscribe for an aggregate number of 340,911 Placing Shares.

The Placing is subject to approval by shareholders at a General Meeting of the Company, further details of which are set out below.

Directors' participation in the Placing

The following Directors have subscribed for 340,911 Placing Shares pursuant to the Placing for an aggregate amount of approximately GBP75,000. Set out below are details of the Directors' beneficial interests in the share capital of the Company as at the date of this announcement and following Admission (as defined below): ...

[hedgehog 100] 15/12/2021 18:44

15/12/2021 07:00 UK Regulatory (RNS & others) OTAQ PLC Interim Results LSE:OTAQ Otaq Plc

Interim Results for six months to 30 September 2021

OTAQ (LSE: OTAQ), the marine technology products and solutions group for the global aquaculture and offshore oil and gas industries, announces results for the six months to 30 September 2021.

Highlights:

-- Revenues for six months to 30 September 2021 of GBP1.8m (H1 FY21: GBP2.0m)

-- Restructuring of senior management team to increase focus on sales led strategy, including appointment of new Chief Commercial Officer

o Positioned to enter new markets with new products and technologies

-- Actively engaged with Marine Scotland regarding regulation of ADDs in Scottish waters

o Result of ADD trial anticipated in Q1 2022

o Long term supply contracts with certain customers now ended

o On-going discussions with Subpesca, the Chilean regulatory authority

o Phase one of trial in Tasmania completed

-- 288 Sealfence units rented by Chilean customers in the period

-- Tracker technology obtained following the ROS Technology acquisition in November 2020

o Clear pathway to commercialisation with prototypes delivered to a customer and trials being successfully completed

-- OceanSense 4 and Lander (seabed survey device) with first sales made for each product

-- Investment in Blue Lion Labs, a Canadian plankton detection business, to license its technology and develop plankton detection systems for use in the salmon market and other finfish sectors

Post-Period Highlights

-- Successful conclusion of a six-month ADD trial with a major Chilean salmon farmer

-- Multi-year supply agreement signed to support Minnowtech's launch into Asia

-- 27 OTAQ sonars delivered to Minnowtech by end of December 2021 and an order placed for 100 more to be delivered in Q4

o Increased visibility in the shrimp market highlighting strength of broadened portfolio

-- Order for tracking technology secured with expectation of around 600 units to be delivered to this customer in H2

o Expected to lead to further sporting event tracking opportunities

Commenting on the results and prospects, Phil Newby, Chief Executive at OTAQ, said: "This was an extremely busy period for the Group - with the focus on commercialisation, product development and securing orders with a view to underpinning revenue visibility on the back of an increased product suite and routes to market.

"We have an exceptional technology set and are seeing increased demand in a growing number of geographies. The team has secured a number of new contracts and we believe that the momentum expected in the second half of the financial year will provide the basis for a step change as we move into the next financial period and beyond."

[hedgehog 100] 25/11/2021 18:21

2022 looks like it will be a very exciting year for OTAQ, with potentially breakthrough progress on a range of fronts.

And yet at the current depressed share price of just 24.5p, it's being valued as a value play: net assets as at 31.3.21 were about £6M.

It's not often that you get the opportunity to buy a growth company with such huge potential at the price of a dull value stock, and it's from this combination that mega-multibaggers can be made.


20/07/2021 06:00 UK Regulatory (RNS & others) OTAQ PLC Final Results LSE:OTAQ Otaq Plc

"... Chairman's Statement

It is with great pleasure that I present my second Chairman's Statement of OTAQ plc and my first after a full year of operating as OTAQ plc following our listing on the Main Market of the London Stock Exchange on 31 March 2020.

Strategy

The strategy of the Group is to build a business of significance within the global aquaculture industry focused on reducing production risks for salmon producers and farmers of other species by helping them effectively and sustainably manage the environmental challenges to their operations. Over time, the Group intends to deploy a range of products designed to meet these needs that are based on a common infrastructure and a cloud-based information system. The strategy is to design, develop, install and support these systems on an Infrastructure as a Service ('IaaS') basis on long-term rental contracts and to continue to diversify the Group's income stream generators.

The Group's core aquaculture product, Sealfence, significantly improves yields for the salmon farming industry by reducing the frequency of predator attacks using acoustic technology. Sealfence currently accounts for the majority of Group revenues with the combination of long-term rental contracts and recurring monthly purchase orders underpinning strong earnings visibility. However, during the last 12 months the number of Sealfence units deployed has declined 33% from 1,156 to 774. The primary reason for this anomalous decline was Marine Scotland's instigation of an overarching environmental review during 2020 into the use of acoustic deterrent devices (ADDs) in the marine environment. This review, which we expect to conclude in early 2022, has led certain customers in Scotland to voluntarily withdraw ADDs from their salmon farms pending the outcome of Marine Scotland's findings - thereby suffering a consequential increase in stock losses from predation and a lamentable deterioration in fish welfare. We are working closely with Marine Scotland to provide them with the necessary scientific studies and data that demonstrates the benign impact of ADDs on the surrounding marine fauna and fully expect in the fullness of time that ADDs will be restored to their position as a pre-eminent sustainable deterrent to the predation of fish from salmon farms in Scottish waters. In the meantime, our ADDs are being deployed in increasing numbers in Chile, notwithstanding the ongoing Covid biosecurity restrictions that are in place. The number of operational ADDs in that market has increased from 142 as at April 2020 to 264 at the end of June 2021 and several large-scale trials are currently underway utilising our technology. The Chilean aquaculture market is substantial and estimated to be over three times larger than the Scottish market where we are currently most active. We look forward to further growth of our ADDs in Chile and other geographic markets where similar trials are currently underway and the regulatory framework is more settled.

In addition to our acoustic deterrence technology, the Group has been busy over the past 12 months developing adjacent technologies that will broaden our reach into the global aquaculture sector. Specifically, we have advanced the shrimp biomass measurement technology through our strategic partnership with Minnowtech and expect to be able to commence commercial sales in early 2022. Likewise, through a collaboration with Blue Lion Labs in Canada, we have accelerated the development of our phytoplankton detection technology and expect to be able to demonstrate its effectiveness in the first half of 2022. Phytoplankton, or "algal bloom", is a major disease challenge for the aquaculture industry generally and it is estimated the global aquaculture industry suffers $3.4 billion in damage and losses annually due to organisms such as algal blooms and harmful phytoplankton. Early detection of this problem should allow farmers to deploy their defence systems early enough to markedly reduce the losses and improve overall fish welfare.

Other products in the Group's portfolio include a range of sub-sea cameras, laser measuring devices, leak detection systems and high integrity electrical connectors for use in the offshore renewables and oil & gas markets, which form the Group's Offshore and Connectors divisions. The technologies being developed and employed in these divisions have potentially valuable applications in the aquaculture division that we are now starting to explore. Covid-19 had a material impact on the offshore oil and gas sector during the year under review and this downturn in the market impacted Group revenues derived from these product lines. However, it appears that activity has recently begun to improve, albeit from relatively subdued levels.

The Group will continue to look to acquire small and medium-sized marine technology companies and to finance any acquisition, ideally, through existing cash resources or bank borrowings. We are highly selective in acquiring businesses with either sustainable profits or with nascent technology that can be applied to our marine-based systems to create a future profitable revenue stream. It is with this approach in mind that we were able to acquire the trade and assets of ROS Technology in November 2020 for GBP0.3m which is a small electronics and design business focused on tracking technology that we expect to deploy in our aquaculture division. ..."

[hedgehog 100] 25/11/2021 11:38

From the Hertsford Capital plc (then to be renamed OTAQ plc) prospectus (dated 24 March 2020):

"New products
The Existing OTAQ Group continues to develop its Sealfence product and in addition to ongoing upgrades the Existing OTAQ Group is also developing versions of Sealfence that can be used in other situations such as for salmon trap nets which are widely used in Finland and other Scandinavian countries and mobile units for other applications.

Plankton Detection
The Existing OTAQ Group also has a number of products in development to address some of the major issues facing salmon farmers outlined above. These include a Live Plankton Analysis System (“LPAS”) which is an algal bloom early warning detection system. Salmon farmers currently analyse water samples manually once per day. If plankton is detected, the farmers may stop feeding the salmon or activate bubble curtains to break up the plankton within the cages. LPAS would take continuous water samples and analyse them throughout the day. It is proposed that only one LPAS system would be required per farm which would be located strategically in plankton hotspot areas.
The LPAS technology if successfully developed would ultimately seek to establish a cloud-based database containing information from all LPAS sensors in one area which would eventually provide a precision / modelling system through the Existing OTAQ Group’s ISAQ cloud-based information system (to be developed pending successful development of LPAS technology).
OTAQ GL has received grants from the Scottish Aquaculture Innovation Centre and CENSIS, Scotland’s innovation centre for sensing, imaging and internet of things technologies, to fund the development of the LPAS technology through the University of Aberdeen’s Floe Cytometry Department’s involvement.
The concepts in respect of these products were exhibited at AquaNor (the world’s largest aquaculture trade show) in August 2019. However, it is not expected that commercial production of the LPAS technology will be possible for at least two years.

Biomass
Marine farming demands a real-time, accurate, method of measuring average weight and total in-cage biomass. At present, there is no system available which fulfils these specific market requirements. Fish farmers have several issues facing them which can be solved with artificial intelligence and machine vision:
* Fish size / Biomass: it is essential for farmers to understand how big their fish are, size distribution and total biomass within each cage;
* Sea Lice detection: salmon farmers have to check and report on sea lice levels daily which takes up a large amount of time and effort; and
* Feed pellet detection: there is a desire to automate the detection of feed pellets so that feeding becomes more automated, precise and less manual.
The Existing OTAQ Group’s proposed biomass system envisages a high resolution stereo camera and AI machine learning. Each of the issues faced by salmon farmers listed above could potentially be addressed by the biomass technology currently in development.
The biomass system, if successfully developed, would offer accurate measurements in a robust, cost effective package. The system would be deployed permanently in every cage and supplied on a service model. The Existing OTAQ Group have now completed the stereo camera test module and a collection of imagery from field testing is being compiled. The major obstacle facing the Existing OTAQ Group is the refinement and training of the artificial intelligence system but two of the major customers have indicated that they will assist with testing.
The inclusion of a pellet (fish food) counting device is also being considered within the biomass technology in development."

[hedgehog 100] 25/11/2021 08:24

25/11/2021 07:00 UK Regulatory (RNS & others) Minnowtech Contract and Trading Update LSE:OTAQ Otaq Plc

OTAQ plc (LSE: OTAQ), the marine technology products and solutions group for the global aquaculture and offshore oil and gas industries, announces a new and exclusive multi-year contract to supply Minnowtech LLC ("Minnowtech") with its sonar technology, following the completion of successful trials. The Board also provides a pre-close trading update ahead of the Company's interim results for the six month period to 30 September 2021, which are expected to be released next month.

Minnowtech Contract

Minnowtech, which provides a non-invasive technology for managing shrimp farming around the world, has jointly developed with OTAQ a proprietary shrimp biomass solution for which OTAQ's sonar hardware is a vital component.

OTAQ has supplied units for testing purposes, with a value to date of over USD50,000, which have performed in excess of expectations in real-world field tests, offering significantly better results than comparable sonar products when tested alongside the OTAQ sonar. Minnowtech is now preparing for commercial launch in Asia where an estimated 100,000 plus shrimp ponds are in operation and could benefit from Minnowtech's solution. The signing of the new contract begins with an initial order for over USD200,000 of further sonars with an expectation of further orders from 2022.

Minnowtech benefitted from significant grant income from a US Government agency and equity financing in 2021 to fund its market entry in 2022. OTAQ holds a beneficial interest in approximately 15.2% of Minnowtech's ordinary share capital.

Trading Update

As announced on 29 October 2021, the trial programme for the Company's acoustic deterrent device ("ADD") with Marine Scotland has now concluded and the results are expected in early 2022. The Board continues to believe that the programme data will support and better inform the EPS (European Protected Species) licensing process required to enable the future operation of ADDs within Scottish waters.

As previously announced, one of the Company's main customers has given notice on OTAQ's ADDs operating in Scotland in accordance with the terms of the original agreement ending in April 2022. Accordingly, the Board has taken mitigating action and is considering a range of funding options, including a significant EU development grant for which the Company has successfully completed the first application stage and will understand the outcome of the second stage in 2022. In addition, the Company is reviewing its working capital opportunities and restructuring some of its financial obligations as well as looking to capitalise on current and prospective new opportunities.

The Company continues to make progress on a number of other projects, including the sports tracking project announced last month, the live plankton analysis system in partnership with Blue Lion Labs Inc., new ADD deployment in Chile, railway trials using OTAQ's tracking technology and ADD trials in Australia.

Phil Newby, Chief Executive at OTAQ, commented: "We are delighted to see the continued progress at Minnowtech. It is well placed for growth and we look forward to working with its team in successfully launching their biomass solution which utilises our sonar technology. Minnowtech has worked hard on developing its business plans as well as its product and we can now see a path to growth. As demand grows for its product, OTAQ will benefit from the corresponding sonar deployment."

Ken Malone, co-founder of Minnowtech commented: "Working alongside OTAQ has enabled us to accelerate our product commercialisation so allowing earlier than expected development of our commercial and sales plans. We are extremely excited by the growth potential and step change in both units deployed and returns expected. We have a solution that has been thoroughly tested and look forward to product launch soon."

[hedgehog 100] 23/11/2021 16:02

RICHARD BEESLEY JOINS OTAQ AS CHIEF COMMERCIAL OFFICER
07/10/2021

As part of a major commercial expansion strategy, Richard Beesley has been appointed as Chief Commercial Officer, who will join our senior leadership team.

Richard brings with him over 20 years of knowledge and experience of working in senior leadership roles within offshore energy and marine markets, where he focused on engineered protection solutions, for high value equipment operating in harsh environments. He has a proven track record of strategic business development, having produced and managed multi-million-pound business growth opportunities, in new international markets and adjacent market sectors. Calling upon this experience, Richard will be responsible for delivering OTAQ Group’s substantial commercial development plans across its core markets of aquaculture and offshore.

Phil Newby, CEO at OTAQ Group, says: “Richard’s appointment as CCO comes at a key time for our business. We are expanding our presence in the growing global aquaculture and offshore markets by offering unique marine technologies and required an experienced, high performing individual to help drive our plans forward. With Richard’s demonstrated success of global business growth initiatives in offshore markets, he fits nicely into our senior team and we are very pleased to have him onboard.”

Richard will be based out of OTAQ’s Lancaster office and will work closely with the other existing sites in Aberdeen, Ulverston, Carnforth and Chile, to build a market-leading business within target sectors.

[hedgehog 100] 23/11/2021 11:23

MINNOWTECH AWARDED $999,780 IN SBIR PHASE II FUNDING FROM THE NSF
7/26/2021

​July 26, 2021, Kekaha, HI – Minnowtech, an aquaculture technology company that enables shrimp farmers to calculate shrimp abundance for optimizing feed and harvest, today announced it has been awarded a $999,780 Small Business Innovation Research (SBIR) Phase II grant from the National Science Foundation (NSF).
With this Phase II SBIR award, titled “Sonar Arrays for Maximizing Aquaculture Yields,” Minnowtech will focus directly on development of its sonar-based product to meet specifications for the company’s upcoming commercialization stage.

Minnowtech's product is designed to enable shrimp farmers to determine shrimp biomass; optimize stocking density, manage shrimp growth conditions and better time their harvests.

“Nearly $45 billion of shrimp are grown each year, and because they are grown in turbid water, farmers are forced to guess how many shrimp are in their ponds based on their initial stocking numbers," said Suzan Shahrestani, PhD, CEO with Minnowtech. "In working side by side with shrimp farmers, we know the lack of being able to measure biomass is their biggest hurdle to increasing the health of their crops and their profitability as farmers. Our Minnowtech solution targets this unmet need head-on."

In 2019, Minnowtech was awarded a $225,000 Small Business Innovation Research (SBIR) Phase I grant from the NSF. In addition, Minnowtech has raised over $1 million from investments by OTAQ Group (OTAQ - LON) and other investors around the world.
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“Ultimately, our product provides farmers with real-time estimates of shrimp biomass and behavior with standardized data acquisition, fostering an integrated system for aquaculture monitoring," said Shahrestani. "With this system in place, we can accelerate shrimp aquaculture as a sustainable food source across the globe."

Founded in 2018, Minnowtech was part of that year’s HATCH Blue accelerator program, which helps support the launch of disruptive aquaculture startups. In 2019, Minnowtech also was selected to be among the Fish 2.0 Global Innovation Forum’s “Fish 2.0 Top 40,” representing the cohort of competition finalist startups that pitched to the Fish 2.0 audience of global investors.

About Minnowtech:
Minnowtech is an aquaculture technology company, founded in Baltimore, MD and with operations in Hawaii, that enables shrimp farmers to estimate shrimp biomass with precision. Using Minnowtech’s sonar-based system, shrimp farmers optimize the health and growth of their animals, enhancing harvest of market-size shrimp while minimizing risks to juvenile shrimp. Learn more: www.minnowtech.com

[hedgehog 100] 22/7/2021 12:09

So OTAQ's revenue, as well as growing strongly, is very recurring in nature.

"Recurring Revenue
By DANIEL LIBERTO Reviewed by DAVID KINDNESS
Updated Nov 29, 2020

What is Recurring Revenue?
Recurring revenue is the portion of a company's revenue that is expected to continue in the future. Unlike one-off sales, these revenues are predictable, stable and can be counted on to occur at regular intervals going forward with a relatively high degree of certainty. ...

Many market pundits consider recurring revenue to be a highly desirable quality. They make a company more stable and predictable, both operationally and financially, lowering the risk that business will take a drastic turn from one month to the next.

That stability usually comes at a cost. Investors are regularly willing to pay more for the earnings generated by companies with recurring revenues because their forecasts are deemed more reliable. ... "



Recurring revenues are also cheaper to generate after the first year, because the initial sales cost doesn't have to be repeated.

But their most important trait is that they largely keep on coming in, year after year.

So unlike one-off sales, which need to be matched annually just to stand still, recurring revenues create a base - and staircase - for revenues to grow upon year after year.