DeepVerge PLC (AIM:DVRG) said its Modern Water business secured more than £3mln of orders in China and South Asia in the past quarter, for delivery during the current financial year.
"Significant” sales of water monitoring and membrane water recovery were secured with Tier 1 partners, the company said.
Efforts to diversify into new sectors by sales teams in the US, EU and Asia have been rewarded with orders in the technology sector, specifically from microchip fabrication manufacturers.
This is seen as “opening up a very large new vertical worldwide market” for the Modern Water division.
The push into new markets was also said to have resulted in a number of seven-figure deals across the markets of South Asia and the Middle East.
Chief executive Gerard Brandon hailed the sales efforts in Chinese and South Asia after a challenging period for all companies in the region amid the 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,” Brandon said.
He said the business model in Modern Water was changed from selling lower ticket equipment to medium and large enterprise solution sales, with investment also targeted to upgrading existing Microtox and Microtrace equipment, adding more efficient data aggregation capabilities, interfacing with third party systems and integrating with large operational management systems.
With the sales efforts shifted towards identifying partners capable of making larger solution sales and training their staff to sell the new offering, Brandon said, “this strategy is now gaining traction and we continue to build our presence as a world leading water testing solutions provider."
The company also announced that DeepVerge's Innovenn UK subsidiary has signed a second order with Microsaic Systems PLC (AIM:MSYS) under a previously announced manufacturing services framework agreement, with a contract value of roughly £600,000.
It constitutes a related party transaction for DeepVerge due to its size and as Brandon and non-executive Nigel Burton being directors in both companies.
DeepVerge said its independent directors and the company's nominated adviser considered the terms of the original framework and the further order are fair and reasonable as far as shareholders are concerned.