Water Intelligence PLC Reacquisition of Maryland Franchise, New Executive (1495T)
16 Julio 2020 - 1:05AM
UK Regulatory
TIDMWATR
RNS Number : 1495T
Water Intelligence PLC
16 July 2020
Water Intelligence plc
Reacquisition of Maryland Franchise
Addition of Technology Executive to Group
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 the
reacquisition of its franchise operation that encompasses the
entire state of Maryland ("Maryland") within the Group's American
Leak Detection subsidiary ("ALD").
Maryland is a significant reacquisition. As noted above, the
franchise territory covers the entire state of Maryland which
includes significant cities such as Baltimore, Bethesda, and
Annapolis. The reacquisition enables the Group to add further scale
to Water Intelligence, both operationally and financially. The
acquisition is accretive to shareholder value and fuels the Group's
long-term growth strategy that has produced strong returns in
revenue and profits over the last five years. The Group has already
indicated that, despite Covid-19, it is operating as an "essential
service provider" and performance remains in-line with analyst
expectations for 2020.
In executing its growth plan, the Group plans to open a regional
office in Baltimore to integrate various aspects of the Group's
expansion, especially with respect to its proprietary product
roadmap. In this context, the Group also announces the hiring of
Silicon Valley veteran Daniel McDonald. Mr. McDonald, a graduate of
Stanford University with both a bachelors and a masters degree in
engineering and with significant professional experience in venture
capital and product development, will head the Baltimore regional
office and lead the Group's innovation push to address growing
water infrastructure and green economy issues in the United States
and around the world.
Operationally, the Group continues to reinforce ALD's brand
leadership across the United States. ALD operates in 46 states of
the United States and generates over $125 million in annual sales
to third parties from both franchise and corporate-operated
locations under the same brand. The Northeast US is a region of
high disposable income and an area in which the Group's
residential, commercial, and municipal offerings are in strong
demand.
Today's reacquisition accelerates such efforts at brand
integration and market capture. First, a new regional corporate
office in Baltimore will link corporate operations from Boston to
New York to Washington DC. Moreover, such regional integration will
also include highly successful franchises in Northern New Jersey
and Philadelphia that each execute well over $1 million in sales.
Second, the Group plans to use its Baltimore office to establish a
US municipal operation for its UK-based Water Intelligence
International subsidiary. As indicated during 1H, Water
Intelligence International plans to roll-out its proprietary sewer
and wastewater acoustic diagnostic device for both municipal and
residential customers during 3Q. Mr. McDonald is working with Steve
Gayler, head of Water Intelligence International on that product
release.
Financially, for full-year 2019, Maryland generated
approximately $1.07 million of sales and approximately $0.4 million
of pre-tax profits. The purchase price for the reacquisition which
includes all assets to conduct operations (trucks, equipment etc.)
is $1.35 million.
Commenting on the Group's plan, Executive Chairman, Dr. Patrick
DeSouza remarked: "We seek to distinguish ourselves among companies
operating in the Covid-19 marketplace. We are accelerating our
growth plans because we are bringing important solutions to water
and wastewater issues that remain in high demand, especially during
this pandemic as people "shelter-in-place". The combination of
reacquiring Maryland to fuel operational growth and the opportunity
to work with Daniel McDonald on leveraging our existing
multinational sales and distribution footprint to bring to market
new innovation products is quite exciting. Our second half has
started strongly."
Executive Vice-President Daniel J. McDonald added: "I am
incredibly pleased to contribute to the future of Water
Intelligence. The Group has significant attributes of strong growth
companies that I have helped build in Silicon Valley: an important,
sizeable market around which the Company's innovation can make a
difference and a solid foundation of technology deployment in its
existing solutions as a springboard to capture that market.
Deteriorating water infrastructure is an acute problem that should
matter to all of us. It is a profound question of water security.
Moving quickly from our regional office in Baltimore, with its
proximity to Washington DC and policy development over
infrastructure spending for the green economy, we have an
opportunity to make an impact in the marketplace."
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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