Water Intelligence PLC Reacquisition of Northeast Florida Franchise (7532D)
01 Julio 2021 - 1:00AM
UK Regulatory
TIDMWATR
RNS Number : 7532D
Water Intelligence PLC
01 July 2021
Water Intelligence plc
Reacquisition of Northeast Florida Franchise
Water Intelligence plc (AIM: WATR.L) ("Water Intelligence" or
"Group"), a leading multinational provider of precision,
minimally-invasive leak detection and remediation solutions for
both potable and non-potable water is pleased to announce that it
has reacquired its Northeast Florida franchise ("Northeast
Florida") within the Group's American Leak Detection subsidiary
("ALD"). Northeast Florida is a significant franchise delivering
water infrastructure solutions to three cities: Jacksonville,
Daytona Beach and Gainsville.
Financially, the acquisition will be earnings enhancing for
shareholders. The purchase price of $2.75 million includes all
assets to conduct operations including trucks and equipment. The
purchase price is based on 2020 full-year results of approximately
$2 million in sales and $0.5 million in adjusted profits. Northeast
Florida has continued to grow during 1H 2021. The purchase price
will be paid over four years. The Northeast Florida franchisee
leadership team will remain in place to run the operation and will
expand management breadth for ALD as members of the corporate
organization.
Demand is high for ALD water leak detection and repair services
in this region due to a variety of factors such as the number of
swimming pools, higher income levels and rainy weather.
Strategically, the Northeast Florida reacquisition follows the
April reacquisition of the Central Florida location. The two
reacquisitions enable ALD to link corporate operations along the
eastern part of Florida from Jacksonville in the northeast to
fast-growing corporate operations in Orlando and sizeable Melbourne
and Miami operations, to the south. This operational scale should
contribute to both growth and efficiencies. In addition, today's
reacquisition reinforces the corporate strategy of creating
regional hubs to help grow both corporate and franchise operations
and also to integrate UK-based Water Intelligence International's
municipal offerings in the United States.
The transaction today represents the fifth acquisition this half
year, including: franchise reacquisitions in Northeast Florida,
Central Florida, and Reno, Nevada; a plumbing company, PlumbRight
Services, in Kentucky; and intellectual property assets for
irrigation and stormwater run-off that now form the basis of the
Group's new Intelliditch subsidiary.
The Group also continues its organic growth trajectory. As
reported earlier this month, through 30 April 2021, Group revenues
grew 47% and profit before tax grew 154%, both above the Group's
revenue and profit before tax CAGRs since 2016 of 33% and 53%
respectively. Importantly, franchise royalty income grew by 6%
despite eight franchise reacquisitions during 2020, underscoring
wider business growth with gross sales exceeding $140 million when
including underlying franchisee sales.
The Group expects such momentum to continue. ALD is delivering
"essential services" to consumers, businesses and municipalities to
address their water infrastructure problems. Market demand is
acyclical and growing stronger as the price of water is rising,
especially with climate change-related droughts in the western part
of the US and the aftermath of the big freeze in the southern parts
of the United States.
Executive Chairman, Dr. Patrick DeSouza commented: "We have
executed well during 1H and are finishing strongly with both
organic growth and additional strategic acquisitions. Our team
looks forward to accelerating our already rapid growth trajectory.
Water Intelligence provides valuable solutions for water and
wastewater infrastructure and we seek to help lead efforts to
advance the Green Economy. We aim to deliver on the sizeable
opportunity ahead and expect to launch 2H in equally strong
fashion."
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
RBC Capital Markets - Joint Broker Tel: +44 (0)20 7653 4000
Jill Li
Elizabeth Evans
WH Ireland Limited - NOMAD & Joint Tel: +44 (0)20 7220 1666
Broker
Adrian Hadden
James Sinclair-Ford
Matthew Chan Tel: +44 (0)7920 599 793
Dowgate Capital Ltd - Joint Broker
Stephen Norcross
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END
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