Water Intelligence PLC Trading Update & Board Change (1660I)
07 Agosto 2019 - 01:01AM
UK Regulatory
TIDMWATR
RNS Number : 1660I
Water Intelligence PLC
07 August 2019
Water Intelligence plc
Trading Update 1H 2019
Board Change
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 the first half of 2019. Interim Results for 1H 2019 will
be published in mid-September.
Results are ahead of market expectations for revenue and
comfortably in-line with expectations for profits before taxes. The
Company continues to perform strongly with its multinational growth
plan. Global demand for water infrastructure products and services
remains strong.
Highlights:
-- Water Intelligence revenues grow strongly by 34% to $15.9 million (1H 2018: $11.8 million)
Key Performance Indicators
o Franchise: Core American Leak Detection franchise royalties
grow 4% to $3.44 million (1H 2018: $3.31 million)
-- Implying approximately $45 million in 1H sales to third
parties from which royalty is derived
o Franchise-Related Activities: Insurance channel, Equipment,
Franchise Sales grows 60% to $4.05 million (1H 2018: $2.54
million)
o US Corporate Operated Locations: Growth of 56% to $7 million
(1H 2018: $4.5 million)
o International Corporate Operated Locations: UK-based Water
Intelligence International (WII) declines 9% to $1.4 million (1H
2018: $1.5 million)
-- WII sales pipeline strong for full-year, decline based on
timing of sales
-- Water Intelligence profits before tax adjusted for non-core
costs and share-based payments grow 29% to $2.02 million (1H 2018:
$1.57 million)
-- Water Intelligence statutory profits before tax grow 20% to
$1.51 million (1H 2018: $1.26 million)
o Continued increase in headcount to support 2H growth
-- Water Intelligence Balance Sheet remains strong
o Cash: $6.03 million
o Net Cash: $2.17 million (cash less borrowings)
-- Technology reinvestment advancing during Q3
o Commercial roll-out of proprietary sewer diagnostic product in
UK and US after UK acquisition and investment during 2018
o Q3 investment in e-commerce and video display technology
along-side Sumitomo Corporation investment and commercial launch in
Q4 after previously announced demonstrations in Tokyo during Q1 and
prior development work with Tagasauris and Flo Technologies during
2018
-- Strategic Matters:
o Promotion of Board Member, Laura Hills to Vice Chairman
o American Leak Detection: four franchise reacquisitions during
1H: January (Ontario, Canada) and March (South Atlanta and Orlando)
and June (Tucson); announcement of sales of new franchise
territories in Youngstown, Ohio and Central Georgia
o GBP3.2 million fund raise in May to accelerate growth
Commenting on the Group's performance, Executive Chairman, Dr.
Patrick DeSouza remarked: "Global market demand for solutions to
water loss from leakage is strong and only growing. We are
well-positioned and continue to deliver on our articulated plan. 1H
results show continued strong growth at both top and bottom lines
versus 1H 2018. Our results are consistent with the strong
compounded annual growth since 2014 that we discussed in our Annual
Report. Most of the Company's sales are in the US and in dollars
offering safe haven from any impact of Brexit.
"Importantly, our franchise royalty income continues to
consistently grow, fuelled by our business-to-business insurance
channel and despite continued reacquisitions of franchises which
reduce the pool of royalty income. Corporate operations after
franchise reacquisitions are still unlocking significant
shareholder value. Finally, our technology reinvestment to build
our brand profile as an innovation company continues to progress.
We are on a mission to transform the water infrastructure services
market around the world and seek to lead the Insuretech
movement."
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) 3903 7721
Dowgate Capital Ltd
Stephen Norcross
IFC Advisory Ltd Tel: +44(0)20 3934 6630
Graham Herring
Miles Nolan
Zach Cohen
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014
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END
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