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Water Intelligence (WATR)

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Tuesday 06 April, 2021

Water Intelligence

President Biden Water Infrastructure Plan

RNS Number : 4526U
Water Intelligence PLC
06 April 2021
 

Water Intelligence plc

President Biden Water Infrastructure Plan and

Water Intelligence Strategic Opportunities

 

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 a market update regarding the implications for the Group of the American Jobs Plan (the "Plan") announced 31 March. 

The Biden Administration seeks to modernize America's drinking water, wastewater, and stormwater systems, tackle new contaminants, and support clean water infrastructure across rural America. 

The Plan provides, as one cornerstone, investment of at least USD$110 billion for rebuilding water infrastructure.  The Plan focuses on aging pipes and treatment plants, especially targeting the estimated six to ten million homes that still receive drinking water through lead pipes and service lines.  The Plan's goal is to replace 100 percent of the nation's lead pipes and service lines. President Biden has asked Congress to immediately invest USD$45 billion in the Environmental Protection Agency's Drinking Water State Revolving Fund and in Water Infrastructure Improvements for the Nation Act (WIIN) grants.  

As a result of this anticipated increase in demand for the Group's water infrastructure solutions, the Group will be accelerating its strategic growth plan announced in February's 2020 Trading Update.  Moreover, the Group will be reviewing acquisition opportunities previously identified with respect to UK and EU water product companies seeking to gain access to the US market through the Group's 150+ locations across 46 states of the United States.

The Group is well-positioned across its business units to provide solutions for the water infrastructure problems identified by the Plan.  First, the Group's subsidiary American Leak Detection ("ALD"), is the only nationwide provider of precision leak detection and repair solutions reaching over 200,000 homes annually including in rural America.  Over the last two years, ALD has drawn upon the expertise of its UK-based municipal business - Water Intelligence International ("WII") - to provide water infrastructure solutions to various cities in the U.S., particularly Flint, Michigan which has been the epicenter for US public attention regarding lead in drinking water.  ALD plans to invest further in this business line, leveraging the Group's experience and track record to provide solutions to various communities as part of the Plan.  

Second, the Group plans to introduce its proprietary sewer and wastewater diagnostic product into the US market later in the second quarter as COVID restrictions ease.  As previously announced, the technology solution was showcased at last year's ALD Annual Convention.  Currently, WII has deployed the sewer diagnostic technology at water utilities in the UK, where the product has been designed and manufactured.

Third, the Group is exploring acquisitions with respect to stormwater run-off solutions.  ALD locations, especially in the Western United States, see increasing demand given irrigation and stormwater infrastructure problems. We expect that companies offering solutions to these problems will be beneficiaries of the Plan.

The Group's installed base of operations and salience of its American Leak Detection brand across the United States will enable it to provide leadership in diagnosing and fixing US water infrastructure.

Executive Chairman Dr. Patrick DeSouza commented: "Our mission has been to provide solutions and multinational leadership for water infrastructure problems, both clean water and wastewater.  We have communicated and consistently delivered on our vision, as evidenced by our record of compounded annual growth.  Over the course of our last five year plan, we have built a distribution platform - "a One Stop Shop".  We have done so organically at American Leak Detection focusing on the residential and business-to-business markets, especially insurance and property management.  We have also built our platform through acquisition, especially with respect to the municipal solutions gained from our UK-headquartered Water Intelligence International.  

We are pleased to further develop our brand with the Green Economy mark of the London Stock Exchange.  Two weeks ago, we announced the anticipated appointment of Dan Ewell to our board.  With Dan's significant financial markets experience, we can accelerate our growth plan with institutional investors, especially ESG investors. We can also explore corporate opportunities to capture the increased market demand for water infrastructure solutions; demand which will likely continue for the next decade, accelerated by the Biden Plan's proposed investment."

Enquiries:

Water Intelligence plc

 

Patrick DeSouza, Executive Chairman

Tel: +1 203 654 5426

 

 

WH Ireland Limited - NOMAD & Broker

Tel: +44 (0)207 220 1666

Adrian Hadden

 

James Sinclair-Ford

 

Matthew Chan

 

 

 

Dowgate Capital - Joint Broker

Tel: +44 (0)20 3903 7721

Stephen Norcross

 

 

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