Information  X 
Enter a valid email address

Water Intelligence (WATR)

  Print      Mail a friend

Wednesday 30 September, 2020

Water Intelligence

Reacquisition of Brisbane, Australia Franchise

RNS Number : 5098A
Water Intelligence PLC
30 September 2020
 

 

Water Intelligence plc  

Reacquisition of Brisbane, 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 an agreement to reacquire its franchise operation in Brisbane, Australia within the Group's American Leak Detection subsidiary ("ALD").  The transaction is pending certain regulatory requirements that should be satisfied during October. 

Brisbane is the third most populous city in Australia.  The reacquisition follows July's reacquisition of the ALD franchise in Melbourne and the previous reacquisition of the ALD franchise in Sydney. As a result, the Group now will have corporate operations in the three most populous cities in Australia. Such critical mass will enable the Group to better support the growth of current and new ALD franchises and corporate operations throughout the eastern half of Australia. 

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.  

The reacquisition is accretive to shareholder value. Brisbane operations generated approximately AUD$0.5 million in revenue and AUD$0.1 million in pre-tax profits for the trailing twelve months which includes a period of slowdown due to Covid. The purchase price is AUD$550,000. Management will be staying with the Group's corporate operations. The purchase agreement has incentives for a price adjustment upward if management accelerates revenue and profits over the next twelve months as the marketplace adjusts. 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.

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.  Brisbane reinforces our effort to drive growth across all our current geographies:  US, UK, Canada and Australia.  In particular, given the demand for solutions to water loss and wastewater issues, Australia will be a source of strong growth for the Group. With Sydney, Melbourne and now Brisbane, we have critical mass of profitable corporate operations with which to execute and accelerate our plan across Australia."

 

 

 

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

Dowgate Capital Ltd - Broker & Advisor  
Stephen Norcross 

Tel:  +44 (0)7920 599 793

 

 

     

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
AGRFFFFIAIIAFII

a d v e r t i s e m e n t