Water Intelligence PLC Trading Update 1Q 2020 (4020L)
30 Abril 2020 - 1:00AM
UK Regulatory
TIDMWATR
RNS Number : 4020L
Water Intelligence PLC
30 April 2020
Water Intelligence plc
Trading Update 1Q 2020
Water Intelligence plc (AIM: WATR.L) ("Water Intelligence" or
"Company"), a leading multinational provider of precision,
minimally-invasive leak detection and remediation solutions for
both potable and non-potable water is pleased to provide a trading
update for year-to-date through the end of the first quarter.
Results for 2020 through 1Q show continued growth in revenue and
profits; results are comfortably in-line with expectations for both
revenue and profit before taxes (statutory and adjusted).
Given the onset of the Covid-19 crisis during 1Q, the Company
has shown strong execution and remains on track to deploy a new
proprietary sewer diagnostic product to serve customers in
navigating a public health issue of pipes clogged with sanitary
wipes during the crisis.
Highlights:
-- Financial : Water Intelligence revenues grew strongly by 15%
to $8.3 million (1Q 2019: $7.2 million); profits before taxes
(statutory) grew strongly by 35% to $0.7 million (1Q 2019: $0.5
million)
Key Performance Indicators
o Franchise: American Leak Detection franchise royalties grew 4%
to $1.8 million (1Q 2019: $1.7 million)
-- Implying approximately $25 million in year-to-date gross
sales to third parties from which royalty is derived
o Franchise-Related Activities: business-to-business insurance
channel; equipment sales, franchise sales grew 11% to $2.1 million
(1Q 2019: $1.9 million)
o US Corporate-Operated Locations: grew 29% to $3.6 million (1Q
2019: $2.8 million)
o International Corporate-Operated Locations: grew 14% to $0.8
million (1Q 2019: $0.7 million)
-- Includes UK municipal operations and full-service operations
in Ontario, Canada and Sydney, Australia
o Net Cash (Cash minus Total Borrowings and Deferred
Consideration for Franchise Reacquisitions through 2025): ($0.13)
million
o Water Intelligence profit before taxes adjusted for non-cash
expenses (amortization and share-based payments) comfortably
in-line with expectations growing 38% to $0.83 million (1Q 2019:
$0.6 million)
-- Corporate Development :
o Successful National Convention for American Leak Detection in
Scottsdale, Arizona March 11-14 with launch of next five-year
growth plan for franchise system
o Proprietary sewer diagnostic product for residential use on
track to be rolled-out in the US by 1 July 2020 (municipal version
currently used at sites in UK and US)
o Technology product for e-commerce from Entertainment AI to be
rolled-out in US on track for 3Q (Company working with insurance
companies to market/resell water monitoring products and provide
leak detection services)
-- Covid-19 Management :
o As an "essential service provider" in solving water and
wastewater infrastructure problems, the Company continues to be
prudent in navigating the crisis. Execution has included efforts to
safeguard our technicians with protocols and protective equipment
and to provide new value-add services for our insurance company
partners who are relying on our brand and reputation for quality to
enhance the homeowner /consumer experience during these challenging
times
Commenting on the Group's performance, Executive Chairman, Dr.
Patrick DeSouza remarked: "Global market demand for solutions to
water loss from leakage and to health issues from failing
wastewater infrastructure is strong and continues to grow. The
Covid-19 crisis only underscores the on-going need for 'essential'
products and services related to water and wastewater.
We are exceptionally proud of our teams in the US, UK, Australia
and Canada. During the Covid-19 crisis, they have put our customers
with water and wastewater problems first as shelter at home
policies have been implemented. We are rolling out our new
offerings based on proprietary technology and remain ambitious with
our next five-year plan for creating a world-class company that
addresses sustainability issues. Our strong results point to the
importance of this investment category both in good times and in
bad."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014
Enquiries :
Water Intelligence plc
Patrick DeSouza, Executive Chairman Tel: +1 203 654 5426
Adrian Hargrave, VP Corporate Development + 44 (0) 7775 701 838
WH Ireland Limited - NOMAD & Broker Tel: +44 (0) 207 220 1666
Adrian Hadden
James Sinclair-Ford
Matthew Chan Tel: +44 (0) 7920 599 793
Dowgate Capital Ltd - Broker &
Advisor
Stephen Norcross
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END
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