TIDMWATR
RNS Number : 6417V
Water Intelligence PLC
05 December 2023
Water Intelligence plc
Trading Update: On-Track During the First Ten Months
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
Trading update for the ten month period ended 31 October 2023.
Update on Growth Strategy
-- Market demand for precision water and wastewater
infrastructure solutions continues to grow globally. During Q3, the
Group renewed multi-year municipal contracts in Australia and
executed new municipal contracts in the EU to grow the Group's
presence internationally
-- In terms of execution, the Group will be completing in the
US, during Q1 2024, its implementation of Salesforce and related
applications for its scheduling, delivery and payments system to
achieve operating scaleability and efficiencies across corporate
and franchise locations. Such enhanced execution functionalities
are expected to lead to gaining additional national insurance
contracts during Q4 for execution during 2024
-- Both EBITDA and PBT margins have improved despite higher inflation and higher interest rates
-- In terms of investments to support growth, in October the
Group launched a new training, product assembly and R&D
facility in Connecticut to supply more trained technicians and
specialized equipment to meet market demand for solutions; the
facility will also be a showcase to support the sale of new
American Leak Detection franchises for which there is current
demand.
Financial Highlights for the ten month period ended 31 October
2023
-- Revenue increased by 6% to $64.4 million (2022: $60.9 million)
o Franchise royalty flat $5.8 million (2022: $5.8 million)
o Franchise-related activities (franchise sales, equipment
sales, business-to-business channels) increased by 9% to $9.7
million (2022: $8.9 million)
-- Insurance business-to-business channel grew by 9% to $9.1
million (2022: $8.4 million)
o US Corporate sales increased by 5% to $42.6 million (2022:
$40.4 million)
o International Corporate sales rose by 10% to $6.4 million
(2022: $5.8 million)
-- Statutory PBT grew by 11% to $6.8 million (2022: $6.1 million)
-- Adjusted PBT (before non-cash expenses of amortization and
share-based payments; and non-core costs) increased by 14% to $8.7
million (2022: $7.7 million)
-- Statutory EBITDA rose by 6% to $11.3 million (2022: $10.7 million)
-- Adjusted EBITDA (before non-cash share-based payments; and
non-core costs) rose by 9% to $12.6 million (2022: $11.6
million)
-- Adjusted PBT and Adjusted EBITDA Margins improve
o Adjusted PBT margins improve to 14% (2022: 13%)
o Adjusted EBITDA margins improve to 20% (2022: 19%)
-- Balance sheet strong at 31 October 2023
o Cash and equivalents at $17.2 million
o Bank Debt of $15.3 million and Deferred Acquisition Payments
of $8.6 million (combined $23.9 million) with payments spread
through 2027 at a fixed interest rate of approximately 5%
o Net Debt (including bank debt and deferred consideration) to
Statutory EBITDA TTM ratio: 0.58 (low degree of leverage affording
significant financial capacity for acquisitions)
Commenting on the Group's performance, Executive Chairman, Dr.
Patrick DeSouza remarked:
" From an operational perspective, the Group has adjusted well
during 2023 to inflationary and higher interest rate headwinds. We
are achieving profit growth and increasing margins, as well as
making investments for accelerating sales growth in 2024 and
beyond. Moreover, we will be completing our Salesforce
implementation during Q1 2024 which will enable us to accelerate
the growth of our national sales channels. To meet increased market
demand, we are launching an advanced training centre in
Connecticut. Importantly, we have maintained a strong balance sheet
and have additional financial capacity to invest in organic growth
and to execute accretive acquisitions to fuel added revenue and
profits.
We remain confident in our long-term growth prospects and our
ability to continue delivering value for both our franchise and
corporate stakeholders. In delivering on our growth plan, we
appreciate the on-going support of our shareholders."
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
Enquiries:
Water Intelligence
plc
Patrick DeSouza, Executive Tel: +1 203 654 5426
Chairman
RBC Capital Markets - Joint Tel: +44 (0)20 7653 4000
Broker
Rupert Walford
Elizabeth Evans
Daniel Saveski
WH Ireland Limited - NOMAD Tel: +44 (0)20 7220 1666
& Joint Broker
Hugh Morgan
James Bavister
Tel: +44 (0)20 3903
Dowgate Capital Ltd - Joint 7715
Broker
Stephen Norcross
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END
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