TIDMWATR
RNS Number : 8308G
Water Intelligence PLC
29 July 2021
Water Intelligence plc
Strong 1H Trading Update
Water Intelligence plc (AIM: WATR.L) (the "Group" or "Water
Intelligence"), a leading multinational provider of precision,
minimally-invasive leak detection and remediation solutions for
both potable and non-potable water is pleased to provide its
unaudited 1H Trading Update for the period ending 30 June 2021. The
Group's acceleration in performance reported in 1Q continued during
2Q, producing a strong 1H. Moreover, transactions executed at the
end of 2Q and beginning of 3Q fuel further anticipated growth for
2H and beyond.
During 1H the Group's revenue grew by 44% to $24.7 million (1H
2020: $17.1 million) and statutory profit before tax by 92% to $3.8
million (1H 2020: $2 million). Profit before tax adjusted (PBTA)
for non-cash expenses of amortization and share-based payments
increased 77% to $4.2 million (1H 2020: $2.4 million). EBITDA grew
73% to $5.4 million (1H 2020: $3.1 million).
These 1H results follow a strong full year 2020 which, despite
Covid-19, produced 17% revenue growth to $37.9 million and 78%
statutory profit before tax growth to $4.2 million. More broadly,
the first half also builds on the Group's trailing compounded
annual growth rate (CAGR). Since 2016, the Group has achieved a
CAGR of 33% in terms of revenue and 53% in terms of statutory
profit before tax.
The Group plans to announce its interim results in mid-September
2021.
Below are Group Key Performance Indicators (KPIs) (for further
information on KPIs see Strategic Report to 2020 Accounts)
Financial:
-- Water Intelligence revenue grew strongly by 44% reaching
$24.7 million (1H 2020: $17.1 million)
o Core business units - American Leak Detection (ALD) and Water
Intelligence International (WII) - each grew strongly enabling a
broader mix of residential, commercial and municipal offerings for
both clean water and wastewater problems.
-- Implied total annualized sales to customers (gross sales from
which franchise royalty is derived plus direct sales from corporate
locations) has surpassed $140 million providing critical mass
o ALD revenue grew by 42% to $21.9 million (1H 2020: $15.4
million)
-- Royalty income from franchisees grew in absolute terms by 6%
to $3.7 million (1H 2020: $3.5 million), despite eight franchise
reacquisitions during 2020 and one during 1Q that reduced the
available pool of royalty income
-- Franchise-related sales (national accounts; parts and
equipment; franchise territory sales) grew 14% to $4.9 million (1H
2020: $4.3 million)
-- Key insurance business-to-business channel grew 15% to $4.5 million (1H 2020: $3.9 million)
-- Corporate location sales grew 75% to $13.3 million (1H 2020:
$7.6 million)
o WII revenue comprising international corporate locations grew
65% to $2.8 million (1H 2020: $1.7 million)
-- Water Intelligence statutory profit before tax grew very
strongly by 92% to $3.8 million (1H 2020: $2.0 million)
-- Water Intelligence profit before tax adjusted for non-cash
amortisation expense and share-based payments grew very strongly by
77% to $4.2 million (1H 2020: $2.4 million); EBITDA grew very
strongly by 73% to $5.4 million (1H 2020: $3.1 million)
-- Water Intelligence Balance Sheet strong as at 30 June 2021
(adjusted pro forma to include significant acquisition and capital
raise in July 2021)
o Total Cash: $11.2 million
o Bank Borrowings: $9.2 million (net cash of $2 million with
amortization through 2025)
o Company has sufficient resources (cash and EBITDA generation
to execute its current accelerated growth plan and to meet all debt
obligations)
Corporate Development (including subsequent events):
o Oversubscribed equity capital raise completed in July 2021
o Expansion of bank credit facility
o Acquisitions
-- Franchises: Central, Florida; Northeast Florida; Reno,
Nevada; Las Vegas, Nevada; Phoenix, Arizona
-- Plumbing company: Louisville, Kentucky
-- IP assets for irrigation and stormwater run-off; launch of
Intelliditch brand and subsidiary
o Four national insurance contracts
o Commercialization of proprietary sewer diagnostic product
o Addition of Board member with substantial financial markets
experience
o Addition of Chief People Officer with substantial industry
experience
Commenting on the Group's performance, Executive Chairman, Dr.
Patrick DeSouza remarked:
"Once again we are reporting outstanding results. These results
are the product of an outstanding execution team, strong board and
supportive institutional and high net worth shareholders. Most
recently, we completed an oversubscribed funding round and we are
truly appreciative of the support from our investors. We are
accelerating our efforts to build and deliver a world-class company
because we are on a mission to provide private sector leadership
and solutions to water and wastewater infrastructure problems,
especially in light of climate change.
We look forward to attacking this global market opportunity.
During Covid-19, we were designated as an 'essential service
provider' as citizens sheltered in place. As jurisdictions around
the world invest in infrastructure in the aftermath of the pandemic
- underscored by Biden Administration's American Jobs Plan and its
anticipated $100 billion investment in water and wastewater
infrastructure - we anticipate strong demand for our solutions to
safeguard the world's most precious resource."
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
Tel: +44 (0)7920 599 793
Dowgate Capital Ltd - Joint Broker
Stephen Norcross
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTDKFBPCBKDNOB
(END) Dow Jones Newswires
July 29, 2021 02:00 ET (06:00 GMT)
Water Intelligence (LSE:WATR)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Water Intelligence (LSE:WATR)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024