Water Intelligence PLC Reacquisition of Melbourne, Australia Franchise (0030V)
04 Agosto 2020 - 1:00AM
UK Regulatory
TIDMWATR
RNS Number : 0030V
Water Intelligence PLC
04 August 2020
Water Intelligence plc
Reacquisition of Melbourne, Australia 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 the
reacquisition of its franchise operation in Melbourne, Australia
within the Group's American Leak Detection subsidiary ("ALD"). The
Group continues to execute its strategic growth plan and to build
scale as an "essential service provider" for water and wastewater
infrastructure solutions despite the challenges of Covid-19
affecting the broader marketplace.
Due to strong demand for water conservation - residential,
commercial and municipal - and an existing base of corporate and
franchise operations to fulfil such demand, Australia is an
important geography for the Group's strategic growth plan.
Melbourne is a significant reacquisition because it complements the
Group's other corporate base in Sydney. Between Melbourne and
Sydney, the Group can better support growth of its existing
franchise locations in the eastern half of Australia. In addition,
following the acquisition of Melbourne, the Group intends to expand
operations further west to Adelaide and Perth, both of which remain
untapped.
The reacquisition is accretive to shareholder value. Despite
Covid-19's impact on Australia, the Group continues to operate in
Australia as an "essential service" provider to support water and
wastewater infrastructure. Financially, for the trailing twelve
months, which includes six months of Covid-impacted results, the
Melbourne operation generated AUD$1.29 million in sales and
AUD$0.27 million in profits. The purchase price for the
reacquisition which includes all assets to conduct operations
(trucks, equipment etc.) is AUD$1.77 million. The Group plans to
expand the Melbourne business by further leveraging Sydney's
municipal solutions expertise and by gaining the benefits of
various operating synergies between the two locations.
Today's reacquisition continues the Group's drive to establish
regional centers to integrate corporate and franchise operations
across its geographies. It follows similar strategic reacquisitions
since the start of the second quarter: Minneapolis, Minnesota; San
Jose, California; and, most recently, Baltimore, Maryland.
Commenting on the Group's reacquisition, Executive Chairman, Dr.
Patrick DeSouza remarked: "With our growth-focused execution, we
continue to distinguish ourselves among companies operating in the
Covid-19 marketplace. Each year in our annual report, we recommit
ourselves to building a multinational growth company. Our
opportunity for market capture is global and water infrastructure
challenges need to be addressed whether in good times or bad.
Melbourne continues our effort to drive growth across all our
current geographies: US, UK, Canada and Australia. Our second half
continues in strong fashion and we are on track with our 2020
plan."
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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