Interim Results

Water Intelligence PLC

30 September 2026

 

Water Intelligence plc (AIM: WATR.L)

Interim Results and Launch of Preventive Maintenance Business

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 unaudited Interim Results for the period ended 30 June 2026. And the launch of its preventative maintenance business adding additional sources of growth.

1H Results delivered continued revenue and EBITDA adjusted growth with momentum for 2H based on paid pilots for its preventive maintenance growth plan.  The Group's focus is two-fold. First, further competitive differentiation driven by its technology-enabled services platform and second, going to market with "turn-key" preventive maintenance solutions leveraging its strategic water monitoring product partnerships and integrated services.   

Financial Highlights

·    Revenue increased by 7% to $48.2 million (1H 2025: $45.0 million)

o  Franchise Royalty income decreased by 2% to $3.14 million (1H 2025: $3.21 million) as a result of franchise reacquisitions reducing the pool of royalty income

o  Franchise Related sales increased 15% to $5.4 million (1H 2025: $4.7 million)

o  Group Corporate Store sales increased 7% to $39.7 million (1H 2025: $37.1 million)

§ US Corporate sales decreased by 1% to $30.2 million (1H 2025: $30.3 million)

§ International Corporate sales grew 40% to $9.5 million (1H 2025: $6.8 million)

·    PBT Adjusted* increased by 4% to $5.9 million (1H 2025 $5.7 million)

·    EBITDA Adjusted** increased by 6% to $9.8 million (1H 2025: $9.3 million)

·    Statutory Profit Before Tax decreased by 22% to $3.3 million (1H 2025: $4.2 million)

·    Statutory EBITDA decreased by 9% to $7.5 million (1H 2025: $8.2 million)

·    PBT Margin Adjusted* decreased to 12% (1H 2025: 13%)

·    EBITDA Margin Adjusted** decreased to 20% (1H 2025: 21%)

·    EPS Basic Adjusted* increased by 7% to 26.0 cents (1H 2025: 24.3 cents)

·    EPS Fully Diluted Adjusted* increased by 8% to 25.5 cents (1H 2025: 23.7 cents)

·    Cash and equivalents at 30 June of $4.37 million

o  Net Cash of ($21.3) million (cash minus bank borrowings)

o  Net Debt (including both Bank Debt and Deferred Acquisition Payments) to EBITDA Adjusted** ratio: 1.29

o  $4.2 million of receivables booked during 1H 2026 are expected to be paid during 2H 2026 adding to operating cash flow

*PBT Adjusted (adjusted for amortisation, share based payments and non-core costs/gains including IFRS treatment of earn-out gains)

** EBITDA Adjusted (adjusted for share-based payments and non-core costs/gains including IFRS treatment of earn-out gains, restructuring costs associated with our TES platform, legal fees for acquisition related-activities, one-off systems integration and one-off professional fees.)
***Comparative figures for the six months ended 30 June 2025 have been updated to reflect adjustments identified during the audit of the year ended 31 December 2025, and therefore produce rounding differences from those previously reported

Corporate Development  / Capital Allocation

During the period, the Group bought back 116,500 shares into treasury, in line with its stated capital allocation policy. As at 30 June 2026, the Group held 670,650 ordinary shares of 1 penny each in treasury.

Dr. Patrick DeSouza, Executive Chairman of Water Intelligence, commented:

"We look forward to attacking the growing market opportunity in front of us.  We will continue to execute our core growth plan of providing tech-based, minimally invasive leak detection and repair solutions across the US and internationally and further developing additional B2B channels beyond insurance.  Moreover, given our strong balance sheet, we will continue our execution of accretive acquisitions. However, now, given our built-out Technology Enabled Services platform that we have tested with paid pilots with large customers, we are uniquely positioned to provide turn-key preventive maintenance solutions for current and new customers by extending our service workflows seamlessly to include additional sources of growth selling and installing wireless water monitoring devices and using data stored securely in our TES platform to proactively provide the highest level of leak detection and repair aftercare with subscription pricing. 

Our integrated platform with a direct, trained workforce and "first responder" levels of service creates the customer satisfaction that clients seek.  It differentiates us and with our operating scale enables us to capture more of the multi-billion-dollar market for water and wastewater infrastructure services - residential, commercial, municipal."

Enquiries:

Water Intelligence plc

Michael Moulton, CFO                                                                                                  Tel: [phone]

Grant Thornton UK Advisory & Tax LLP - Nominated Adviser                     Tel:+ 44 (0)207 383 5100

Philip Secrett

Harrison Clarke

Ciara Donnelly

Canaccord Genuity Limited - Broker                                                                      Tel: + 44 (0)207 523 8000

Simon Bridges
Harry Gooden

Elizabeth Halley-Stott

Chairman's Statement

In the Chairman's Statement for the 2025 Accounts, we indicated that 2026 promises to be an exciting year for our shareholders and a chance to reap the rewards from our prior technology investments, especially in American Leak Detection (ALD), our core business delivering minimally invasive leak detection and repair services across the US.  ALD's primary mission is to disrupt the $13 billion US insurance market for water infrastructure services through the use of technology. We also pointed to the extensibility of our ALD platform internationally, both organic and through acquisition, via our fast-growing Water Intelligence International subsidiary (40% sales growth 1H 2026 versus 1H 2025 led by our Irish acquisition and its subsequent organic growth).  Leaky water and wastewater pipes are a global problem that is estimated to reach $200 billion given aging infrastructure.

The Group's competitive strategy is informed by strong market demand globally both for Preventive Maintenance solutions (PM) to water infrastructure problems and for a Technology Enabled Services Platform (TES) to deliver PM products and services in an integrated fashion, efficiently and continuously; a "One Stop Shop" that would transform a low tech, fragmented industry of largely local service plumbers. We outlined a growth strategy and projected a roll-out of a delivery system for PM offerings which would be stress-tested in 1H 2026 and launched in 2H 2026 starting with paid pilots. 

We have progressed on schedule.  While executing our base leak detection and repair business and achieving consistent growth - 7% revenue growth, 6% EBITDA adjusted growth - during 1H, we also increased spending in anticipation of sales traction in 2H on PM solutions. We trained our leak detection and plumbing specialists in the installation and deployment of new wireless devices and the efficient execution of aftercare offerings via a subscription model based on data and services. We also used customer feedback to design a low cost call center to provide help to clients with respect to water monitoring devices and aftercare.

Based on our paid pilots, we can demonstrate to all current and prospective clients - residential, commercial, municipal - that because of our operating footprint across the US and prior technology investments, we are the only national company that can take care of them end-to-end: (i) professional installation of quality acoustic-monitors for accuracy and reliability; (ii) real-time wireless alerts transmitted to clients with an option for large customers to provide analytic dashboards; (iii) professionals trained to use proprietary acoustic-based technologies to find and fix leaks; (iv) a world-class CRM that could efficiently and securely store data and dispatch service teams as "first responders"; (v) APIs that integrate the CRM with a network of insurance channels across the US; (vi) automated data reports transmitted electronically and (vii) aftercare by professionals to provide maintenance of solutions using integrated dashboards and video-technology. 

These PM offerings leverage our well-defined sales channels especially our nationwide insurance channel with 23 of the largest insurance companies in the US. This B2B channel can handle 100,000+ assignments annually with rigorous Service Level Agreements (SLAs).  The PM workflows for installing water monitoring products after referrals from insurance companies are very similar to our current workflows from insurance assignments for post-loss leak detection and repair. 

Financial Update.  As noted above, Group revenue grew by 7% to $48.2 million (1H 2025: $45 million).  Broken down further, Group corporate store sales grew by 7% to $39.7 million (1H 2025: $37.1 million).  US stores remained flat at $30.2 million (1H 2025: $30.3 million). Non-US stores, as indicated above, grew 40% to $9.5 million (2025 1H: $6.8 million). Franchise royalty income decreased by 2% to $3.1 million (1H 2025: $3.2 million) reflecting a reduced pool of royalty income from franchise acquisitions. Of note, franchise related sales which include the B2B insurance channel and equipment sales such as monitoring devices grew 15% to $5.4 million (1H 2025: $4.7 million).  More broadly, the Group's network sales (corporate sales and franchise gross sales from which royalty income is derived)  grew by 2.5% to $91.6 million (1H 2025: $89.4 million).

EBITDA Adjusted increased by 6% to $9.8 million (1H 2025: $9.3 million) with margins decreasing slightly to 20% (1H 2025: 21%) reflecting higher materials costs and gasoline prices especially due to the Iranian conflict.  Profit before tax adjusted grew by 4% to $5.9 million (1H 2025: $5.7 million) with margins decreasing slightly to 12% (1H 2025: 13%) reflecting higher materials costs and gasoline prices.  Statutory EBITDA decreased by 9% to $7.5 million (1H 2025: $8.2 million).  Statutory profit before tax decreased by 22% to $3.3 million (1H 2025: $4.2 million) reflecting legal and training expenses for setting up the infrastructure for monitoring services and subscription offerings. On the other hand, paid pilots in Q3, discussed below, began to amortize the start-up costs.  Overall, fully diluted EPS adjusted increased by 8% to 25.5 cents (1H 2025: 23.7 cents).

During Q3 we executed paid pilots with strategic customers.  We now have both operational data supporting significant return on investment (ROI) for clients on PM solutions and financial results from these pilot programs for our shareholders.  Moreover, we have learned lessons from these pilots around which to market our competitive differentiation and refine our PM offerings for greater margins. First, we are "white labeling" our StreamLabs and Bluebot monitoring product offerings. We appreciate that clients value the security and comfort in a "turn-key" solution executed by the ALD brand.  We have chosen wisely: each monitoring product has market leading features. For example, with respect to our StreamLabs product, insurance customers value its wireless shut-off technology.  StreamLab's technology after testing and deployment is recognized by clients to have the highest performance in the industry, quality manufacturing for reliability and attractive pricing relative to other "remote shut-off" options.  By contrast, with respect to our Bluebot product, we have introduced it to national commercial customers. Such customers value its ease of installation given that Bluebot devices can wrap around the pipe and its attractive price point. These channels are willing to trade-off the lack of remote shut-off capability given that commercial locations cannot afford to shut-off the water during business hours but instead rely on ALD "first responder" service capability to dispatch service teams to minimize water loss and damage.

These outcomes from paid pilots validate our confidence in the PM growth strategy and enable us to start scaling up in Q4 with financial milestones around which we can forecast.  We will be also introducing additional Key Performance Indicators (KPIs), such as numbers of devices sold, for 2027.

Long-run Sustainability of Client Demand for Our TES Platform. 

Market demand for preventive maintenance of aging water infrastructure is here to stay because the price of water and cost of water-related damage are only rising.  In our 2025 Accounts, we outlined two emerging drivers that bring about a sea-change for customers to embrace preventive maintenance: (a) reduction in price of wireless monitoring devices; and (b) ready use of AI to integrate data emitted from devices with efficient service workflows to find and fix water and wastewater leaks proactively.  Such continuous engagement with the client is critical as all pipes leak and undetected leaks only get worse. 

Currently, the water infrastructure services market is still fragmented.  ALD is the only nationwide leak detection and repair company in the US that has the operating scale and the prior technology investments in proprietary acoustic-based tools, world-class CRM and national channels to effectively integrate monitoring devices and aftercare. There are many monitoring companies with differing technologies, producing erratic results and offering varying price points. These product companies do not have a direct, trained work forcelike our core business - American Leak Detection - to provide timely, quality care and consistent pricing for clients.  Customer satisfaction is low for these device companies creating an opportunity for our TES platform to curate water monitoring devices and seamlessly integrate care for our clients.  Customers will pay for such value delivery.  Moreover, we can make good on the promise of data from monitoring products by leveraging our Salesforce database to improve flow algorithms.  We have done this with our product partners to develop improved risk profiles.

Capital Allocation and Strategic Direction.   We are pleased with our progress on delivering a TES platform.  It has taken significant investment in integrating a nationwide operation with a world class CRM backbone and a network of B2B channels.  On the other hand, given the reduced prices for devices and the rise of AI, we have a ready to go platform that produces competitive differentiation in the marketplace and barriers to entry.  We have the capital to execute our "go-to-market" plan to boost organic sales.  Our balance sheet is strong.  We have cash - $4.4 million - as of 30 June 2026.  We also generate cash from operations, including from royalty income and we are under-levered.  Our Net Total Debt to EBITDA Adjusted is 1.29 as of 30 June 2026.  Given our balance sheet, we can also be selective about acquisitions whether our own franchises or third party companies especially plumbing companies to open geographies as we did in Ireland.

We are encouraged by the paid pilots and believe that we are bringing, at the right time, the right set of resources to bear on global market demand for preventive maintenance solutions. 

Patrick DeSouza
Executive Chairman

Interim Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2026

		Six months ended 30 June  2026	Six months ended 30 June  2025	Year ended  31 December 2025
	Notes	$	$	$
		Unaudited	Unaudited	Audited
Revenue	4	48,240,254	45,025,419	90,428,290
Cost of sales		(4,951,874)	(4,346,322)	(9,380,445)
Gross profit		43,288,380	40,679,097	81,047,845
Administrative expenses
-       Other income		181,109	96,780	1,432,757
-       Share-based payments		(178,099)	(174,915)	(302,012)
-       Amortisation of intangibles		(314,163)	(455,240)	(957,966)
-       Other administrative costs		(38,541,949)	(34,920,757)	(72,351,158)
Total administrative expenses		(38,853,102)	(35,454,132)	(72,178,379)
Operating profit		4,435,278	5,224,965	8,869,466
Finance income		57,055	227,773	339,321
Finance expense		(1,203,608)	(1,222,090)	(2,421,687)
Profit before tax	4	3,288,725	4,230,648	6,787,100
Taxation expense		(822,183)	(1,075,568)	(1,646,071)
Profit for the period		2,466,542	3,155,080	5,141,029
Attributable to:
Equity holders of the parent		2,380,275	3,092,602	4,940,726
Non-controlling interests		86,267	62,478	200,303
		2,466,542	3,155,080	5,141,029
Other comprehensive income
Exchange differences arising on translation of foreign operations		(181,992)	382,203	156,321
Cash flow hedge movement not subsequently reclassified to the P&L		276,043	(485,817)	(513,013)
Fair value adjustment on listed equity investment (net of deferred tax)		31,666	(32,186)	(392)
Total comprehensive income for the period		2,592,259	3,019,280	4,783,945
Earnings per share		Cents	Cents	Cents
Basic	5	14.1	17.8	28.7
Diluted	5	13.8	17.4	28.0

Consolidated Statement of Financial Position as at 30 June 2026

		At 30 June 2026	At 30 June 2025	At 31 December 2025
	Notes	$	$	$
		Unaudited	Unaudited	Audited
ASSETS
Non-current assets
Goodwill		69,720,998	68,928,861	69,520,998
Listed equity investment		328,577	255,558	292,067
Other intangible assets		17,755,807	14,062,379	15,738,921
Interest rate swap		254,854	6,007	-
Property, plant and equipment		14,929,706	15,121,544	15,362,937
Trade and other receivables		211,602	288,694	239,554
		103,201,544	98,663,043	101,154,477
Current assets
Inventories		1,647,330	882,747	1,697,976
Trade and other receivables		15,032,744	13,182,487	10,716,172
Investments		-	4,207,544	-
Cash and cash equivalents		4,371,075	4,211,873	6,041,905
		21,051,149	22,484,651	18,456,053
TOTAL ASSETS	4	124,252,693	121,147,695	119,610,530
EQUITY AND LIABILITIES
Equity attributable to holders of the parent
Share capital	6	143,192	143,192	143,192
Share premium	6	35,417,072	35,417,072	35,417,072
Shares held in treasury	6	(2,861,883)	(1,149,538)	(2,514,949)
Merger reserve		1,001,150	1,001,150	1,001,150
Share based payment reserve		3,302,477	2,997,281	3,124,378
Foreign exchange reserve		(1,504,560)	(1,096,684)	(1,322,568)
Reverse acquisition reserve	6	(27,758,088)	(27,758,088)	(27,758,088)
Equity investment reserve		(763,395)	(826,855)	(795,061)
Cash flow hedge reserve		254,853	6,007	(21,189)
Retained profit		63,339,307	59,110,907	60,959,031
		70,570,123	67,844,442	68,232,966
Equity attributable to Non-Controlling interest
Non-controlling interest		432,979	359,213	497,039
Non-current liabilities
Borrowings and lease liabilities		30,400,388	27,981,083	28,000,917
Deferred consideration		2,703,095	3,956,104	4,236,511
Interest rate swap		-	-	21,189
Deferred tax liability		5,380,625	4,246,026	4,564,997
		38,484,108	36,183,213	36,823,614
Current liabilities
Trade and other payables		7,631,860	7,230,496	7,430,141
Borrowings and lease liabilities		5,480,614	3,964,092	5,278,673
Deferred consideration		1,653,009	5,566,238	1,348,097
		14,765,483	16,760,827	14,056,911
TOTAL EQUITY AND LIABILITIES		124,252,693	121,147,695	119,610,530

Interim Consolidated Statement of Changes in Equity

For the six months ended 30 June 2026

	Share Capital	Share Premium	Shares held in treasury	Reverse Acquisition Reserve	Merger Reserve	Share based payment reserve	Foreign exchange reserve	Equity investment reserve	Cash Flow Hedge Reserve	Retained  Profit	Total	Non-controlling interest	Total Equity
	$	$	$	$	$	$	$	$	$	$	$	$	$
As at 1 January 2025	143,192	35,417,072	(883,549)	(27,758,088)	1,001,150	2,822,366	(1,478,888)	(794,668)	491,823	56,018,304	64,978,714	455,007	65,433,721
Share based payment expense	-	-	-	-	-	174,915	-	-	-	-	174,915	-	174,915
Share buyback	-	-	(265,989)	-	-	-	-	-	-	-	(265,989)	-	(265,989)
Distribution to non-controlling interest	-	-	-	-	-	-	-	-	-	-	-	(158,272)	(158,272)
Profit for the period	-	-	-	-	-	-	-	-	-	3,092,603	3,092,603	62,478	3,155,081
Other comprehensive income	-	-	-	-	-	-	382,206	(32,186)	(485,817)	-	(135,797)	-	(135,797)
As at 30 June 2025 (unaudited)	143,192	35,417,072	(1,149,538)	(27,758,088)	1,001,150	2,997,281	(1,096,684)	(826,855)	6,007	59,110,907	67,844,441	359,216	68,203,656
Share-based payment expense	-	-	-	-	-	127,097	-	-	-	-	127,097	-	127,097
Share buyback	-	-	(1,365,411)	-	-	-	-	-	-	-	(1,365,411)	-	(1,365,411)
Profit for the period	-	-	-	-	-	-	-	-	-	1,848,124	1,848,124	137,825	1,985,949
Other comprehensive income	-	-	-	-	-	-	(225,884)	31,794	(27,196)	-	(221,286)	-	(221,286)
As at 31 December 2025 (audited)	143,192	35,417,072	(2,514,949)	(27,758,088)	1,001,150	3,124,377	(1,322,568)	(795,061	(21,189)	60,959,030	68,322,967	497,039	68,730,007
Share based payment expense	-	-	-	-	-	178,099	-	-	-	-	178,099	-	178,099
Share buyback	-	-	(346,934)	-	-	-	-	-	-	-	(346,934)	-	(346,934)
Distribution to non-controlling interest	-	-	-	-	-	-	-	-	-	-	-	(199,327)	(199,327)
Contribution by non-controlling interest	-	-	-	-	-	-	-	-	-	-	-	49,000	49,000
Profit for the period	-	-	-	-	-	-	-	-	-	2,380,275	2,380,275	86,267	2,466,542
Other comprehensive income	-	-	-	-	-	-	(181,992)	31,666	276,043	-	125,717	-	125,717
As at 30 June 2026 (unaudited)	143,192	35,417,072	(2,861,883)	(27,758,088)	1,001,150	3,302,475	(1,504,560)	(763,395)	254,854	63,339,306	70,570,122	432,980	71,003,101

Interim Consolidated Statement of Cash Flows

For the six months ended 30 June 2026

	Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended  31 December 2025
	$	$	$
	Unaudited	Unaudited	Audited
Cash flows from operating activities
Profit before tax	3,288,725	4,230,648	6,787,100
Adjustments for non-cash/non-operating items:
Depreciation of plant and equipment	2,741,900	2,547,496	5,239,297
Amortisation of intangible assets	314,164	455,240	957,966
Share based payments	178,099	174,915	302,012
Gain from elimination of contingent consideration	(99,000)	-	(1,285,099)
Goodwill impairment	-	-	125,000
Interest paid	1,203,608	1,222,090	2,421,687
Interest received	(57,055)	(227,773)	(339,321)
Operating cash flows before movements in working capital	7,570,441	8,402,614	14,208,642
(Increase)/Decrease in inventories	50,645	47,693	(767,536)
(Increase)/Decrease in trade and other receivables	(4,239,619)	(2,275,154)	196,176
Increase in trade and other payables	38,125	571,899	613,277
Cash generated by operations	3,419,592	6,747,052	14,250,559
Income taxes	(11,400)	(38,008)	(250,129)
Net cash generated from operating activities	3,408,192	6,709,044	14,000,430
Cash flows from investing activities
Purchase of plant and equipment	(426,847)	(608,449)	(1,904,076)
Disposal of plant and equipment	204,743	66,845	215,574
Purchase of intangibles	(2,329,790)	(2,682,026)	(5,006,843)
Reacquisition of Franchises	(175,000)	(2,900,000)	(3,225,000)
Sale of investments	-	2,475,545	6,683,089
Interest received	57,055	227,773	339,321
Net cash used in investing activities	(2,669,839)	(3,420,312)	(2,897,935)
Cash flows from financing activities
Share buy-back	(346,934)	(265,990)	(1,631,401)
Distribution to non-controlling interest	(199,327)	(158,272)	(158,272)
Interest paid	(1,203,608)	(1,087,157)	(2,350,054)
Proceeds from borrowings	3,000,000	-	1,725,000
Repayment of borrowings	(1,202,929)	(1,074,804)	(2,161,053)
Repayment of notes	(1,154,505)	(1,009,324)	(3,965,627)
Repayment of lease liabilities	(1,301,880)	(933,790)	(1,971,663)
Net cash used in financing activities	(2,409,183)	(4,529,337)	(10,513,069)
Net (decrease)/increase in cash and cash equivalents	(1,670,830)	(1,240,605)	589,426
Cash and cash equivalents at the beginning of period	6,041,905	5,452,479	5,452,479
Cash and cash equivalents at end of period	4,371,075	4,211,874	6,041,905

Notes to the Interim Consolidated Financial Information

for the six months ended 30 June 2026

1    General information

The Group is a leading provider of minimally-invasive leak detection and remediation services and products for water and wastewater infrastructure. The Group's strategy is to be a provider of "end-to-end" solutions - a "one-stop shop" for residential, commercial and municipal customers.

The Company is a public limited company domiciled in the United Kingdom and incorporated under registered number 03923150 in England and Wales. The Company's registered office is 27-28 Eastcastle Street, London, W1W 8DH.

2    Significant accounting policies

Basis of preparation and changes to the Group's accounting policies

The accounting policies adopted in the preparation of the interim consolidated financial information are consistent with those of the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2025.  

This interim consolidated financial information for the six months ended 30 June 2026 has been prepared in accordance with IAS 34, "Interim financial reporting". This interim consolidated financial information is not the Group's statutory financial statements and should be read in conjunction with the annual financial statements for the year ended 31 December 2025, which have been prepared in accordance with International Financial Reporting Standards (IFRS) and have been delivered to the Registrar of Companies. The auditors have reported on those accounts; their report was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis of matter without qualifying their report and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

The interim consolidated financial information for the six months ended 30 June 2026 is unaudited. In the opinion of the Directors, the interim consolidated financial information presents fairly the financial position, and results from operations and cash flows for the period. Comparative numbers for the six months ended 30 June 2025 are unaudited.

This interim consolidated financial information is presented in US Dollars ($), rounded to the nearest dollar.

Foreign currencies

(i) Functional and presentational currency

Items included in this interim consolidated financial information are measured using the currency of the primary economic environment in which each entity operates ("the functional currency") which is considered by the Directors to be the Pounds Sterling (£) for the Parent Company and US Dollars ($) for American Leak Detection Holding Corp. This interim consolidated financial information has been presented in US Dollars which represents the dominant economic environment in which the Group operates and is considered to be the functional currency of the Group. The effective exchange rate at 30 June 2026 was £1 = US$ 1.3232 (30 June 2025: £1 = US$ 1.3724).

Critical accounting estimates and judgments

The preparation of interim consolidated financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, the resulting accounting estimates will, by definition, seldom equal the related actual results.

In preparing this interim consolidated financial information, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2025.

3      Significant events and transactions

Repurchase of Group shares: 116,500

4   Segmental information

In the opinion of the Directors, the operations of the Group currently comprise four operating segments: (i) franchise royalty income, (ii) franchise-related activities including sale of franchise territory, business-to-business sales and product and equipment sales, (iii) US corporate-operated locations led by the Group's U.S.-based American Leak Detection subsidiary and (iv) international corporate locations led by the Group's UK-based Water Intelligence International subsidiary.

The Group mainly operates in the US, with operations in the UK, Canada and Australia. In the six months to 30 June 2026, 80.2% (1H 2025: 84.8%) of its revenue came from the US-based operations; the remaining 19.8% (1H 2025: 15.2%) of its revenue came from its international corporate operated locations.

No single customer accounts for more than 10% of the Group's total external revenue.

The Group adopted IFRS 8 Operating Segments with effect from 1 July 2008. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group.

Information reported to the Group's Chief Operating Decision Maker (being the Executive Chairman), for the purpose of resource allocation and assessment of division performance is separated into four income generating segments that serve as key performance indicators (KPI's):

-       Franchise royalty income;

-       Franchise-related activities (including sale of franchise territory, product and equipment sales and Business-to-Business sales);

-       US corporate operated locations; and

-       International corporate operated locations.

Items that do not fall into the four segments have been categorised as unallocated head office costs and non-core costs.

The following is an analysis of the Group's revenues, results from operations and assets:

Revenue		Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
		$	$	$
		Unaudited	Unaudited	Audited
Franchise royalty income		3,141,483	3,212,811	6,025,980
Franchise related activities		5,400,832	4,679,930	10,069,327
US corporate operated locations		30,162,522	30,337,393	59,589,413
International corporate operated locations		9,535,416	6,795,286	14,743,571
Total		48,240,253	45,025,420	90,428,290

Profit before tax		Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
		$	$	$
		Unaudited	Unaudited	Audited
Franchise royalty income		1,162,352	1,178,168	2,217,538
Franchise related activities		408,451	333,608	688,882
US corporate operated locations		4,423,821	5,378,814	11,566,890
International corporate operated locations		119,951	(167,683)	(291,223)
Unallocated head office costs		(911,350)	(1,867,259)	(6,920,086)
Net Non-core costs/gains		(1,914,500)	(625,000)	(474,901)
Total		3,288,725	4,230,648	6,787,100

Assets		Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
		$	$	$
		Unaudited	Unaudited	Audited
Franchise royalty income		25,093,167	25,435,882	23,070,896
Franchise related activities		4,731,639	3,429,417	4,015,359
US corporate operated locations		76,224,948	74,788,134	74,984,509
International corporate operated locations		18,202,939	17,494,262	17,539,767
Total		124,252,693	121,147,695	119,610,530

Geographic Information

The Group has two wholly-owned subsidiaries - ALD and Water Intelligence International (WII).  Operating activities are captured as both franchise-executed operations and corporate-executed operations.  ALD has both US franchises and corporate-operated locations.  It also has international franchises, principally located in Australia and Canada.  Operations focus on residential and commercial water leak detection and remediation with some municipal activities.  By comparison, WII has only corporate operations located outside the United States.  These WII international operations are principally municipal activities with some residential leak detection and remediation.  As noted herein, the Group's vision is to become a multinational growth company and a "One Stop Shop" for residential, commercial and municipal solutions to water and wastewater infrastructure problems. 

Total Revenue

	Six months ended 30 June 2026 Unaudited			Six months ended 30 June 2025 Unaudited			Year ended 31 December 2025 Audited
	US	International	Total	US	International	Total	US	International	Total
	$	$	$	$	$	$	$	$	$
Franchise royalty income	3,109,864	31,618	3,141,483	3,179,120	33,692	3,212,811	5,951,208	74,772	6,025,980
Franchise related activities	5,400,832	-	5,400,832	4,679,930	-	4,679,930	10,069,327	-	10,069,327
US corporate operated locations	30,162,522	-	30,162,522	30,337,393	-	30,337,393	59,589,413	-	59,589,413
International corporate operated locations	-	9,535,416	9,535,416	-	6,795,286	6,795,286	-	14,743,571	14,743,571
Total	38,673,219	9,567,034	48,240,253	38,196,442	6,828,978	45,025,420	75,609,948	14,818,343	90,428,290

5    Earnings per share

The earnings per share has been calculated using the profit for the period and the weighted average number of Ordinary shares outstanding during the period, as follows:

		Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
		Unaudited	Unaudited	Audited
Earnings attributable to shareholders of the Company ($)		2,380,275	3,092,602	4,940,726
Weighted average number of ordinary shares		16,860,242	17,333,707	17,217,593
Diluted weighted average number of ordinary shares		17,210,906	17,756,887	17,617,356
Earnings per share (cents)		14.1	17.8	28.7
Diluted earnings per share (cents)		13.8	17.4	28.0

Earnings per share are computed based on Ordinary shares.  There is a class of B Ordinary Shares discussed in Footnote 6 that are not admitted to trading.

6     Share capital

The issued share capital at the end of the period was as follows:

Group & Company	Ordinary Shares of 1p each	Shares held in treasury Number
	Number		Total Number
At 30 June 2026	16,802,038	685,650	17,487,688
At 30 June 2025	17,311,538	176,150	17,487,688
At 31 December 2025	16,918,538	569,150	17,487,688

The net number of options including the new grants and leavers from the Company at 30 June 2026 is 3,633,000.  On 25 March 2026 the Company issued options for 385,000 shares to satisfy 2025 Board Compensation.  The options have an exercise price of 300p.

Group & Company	Share Capital	Share Premium	Shares In Treasury
	$	$	$
At 30 June 2026	143,192	35,417,071	(2,861,883)
At 30 June 2025	143,192	35,417,071	(1,149,538)
At 31 December 2025	143,192	35,417,071	(2,514,949)

Reverse acquisition reserve

The reverse acquisition reserve was created in accordance with IFRS3 Business Combinations and relates to the reverse acquisition of Qonnectis Plc by ALDHC in July 2010. Although these Consolidated Financial Statements have been issued in the name of the legal parent, the Company it represents in substance is a continuation of the financial information of the legal subsidiary ALDHC. A reverse acquisition reserve was created in 2010 to enable the presentation of a consolidated statement of financial position which combines the equity structure of the legal parent with the reserves of the legal subsidiary. Qonnectis Plc was renamed Water Intelligence Plc on completion of the reverse acquisition on 29 July 2010.

7    Transactions in the Period and Subsequent Events 

During the period, the Group bought back 116,500 shares into treasury, in line with its stated capital allocation policy. As at 30 June 2026, the Group held 670,650 ordinary shares of 1 penny each in treasury.

8   Publication of announcement and the Interim Results

A copy of this announcement will be available at the Company's registered office (27-28 Eastcastle Street, London, W1W 8DH) from the date of this announcement and on its website - www.waterintelligence.co.uk. This announcement is not being sent to shareholders.

 

END