Water Intelligence Share Discussion Threads

[jaf111] 25/9/2019 15:53

The interims cannot come too soon......
Very surprised by the continued weakness in share price - down from over 400p since May despite positive trading update.

[silverfern] 23/9/2019 14:40

well at least the mms have closed the spread to get some kind of market going.

[la forge] 12/9/2019 08:44

Shanklin
12 Sep '19 - 07:10 - 466 of 469


cheers and thanks

have a good one

[shanklin] 12/9/2019 08:35

BTW, because of the exercise of options RNS'd on 30-Aug-19, AIUI H1 results will be issued on 27 or 30-Sep.

[silverfern] 12/9/2019 08:00

Cheers, helpful as ever Shanklin

[effortless cool] 12/9/2019 07:49

Thanks, Shanklin, that is helpful.

[shanklin] 12/9/2019 07:10

La Forge

Having been in contact yesterday with WATR, Alliance News are 100% incorrect in stating that:

'As part of the investment, Water Intelligence will grant a royalty-free global licence to Entertainment AI "for the field of use of sustainability and home services audiences in respect of water and infrastructure".'

Specifically, my understanding is that as well as taking a percentage stake in the newly set up company, WATR have the right to use EAI's technology to help sell anybody's products in the "field of use of sustainability and home services audiences in respect of water and infrastructure". "Royalty-free" means that as and when WATR achieves a sale, WATR can take the cut its agreed with whoever's product it has sold and there will not be any obligation for WATR to pay anything to EAI.

The EAI technology is apparently very clever in terms of directing people doing searches to videos that will facilitate sales through WATR.

FWIW, I only contacted WATR for clarification because IMHO this part of the RNS is very unclear.

[la forge] 11/9/2019 18:51

Water Intelligence Invest In Nascent New Blockchain Worldwide Business

Wed, 11th Sep 2019 18:09
Alliance News

(Alliance News) - Water Intelligence PLC on Wednesday announced an investment and licencing partnership deal with soon-to-be-formed Entertainment AI PLC, currently named Blockchain Worldwide PLC.

Shares in Water Intelligence closed down 7.3% at 285.00 pence in London.

Earlier on Wednesday, Blockchain Worldwide PLC reported it is buying artificial intelligence firms Entertainment AI Inc, GTChannel Inc and Tagasauris Inc for a total all-share consideration of GBP12.9 million. The trio of firms - known as the Entertainment AI Group - are involved in data analytics and artificial intelligence services.

Blockchain Worldwide also reported it would change its name to Entertainment AI PLC on closing the acquisition, and launched a GBP8.6 million share placing.

Later on Wednesday, leak detection and remediation firm Water Intelligence said it will invest GBP415,000 in Entertainment AI PLC as part of the placing once the newly-named enlarged firm is admitted to AIM.

As part of the investment, Water Intelligence will grant a royalty-free global licence to Entertainment AI "for the field of use of sustainability and home services audiences in respect of water and infrastructure".

Under the deal, Water Intelligence will obtain rights - including a board observer and information rights - provided it holds at least a 2% stake in Entertainment AI.

Sumitomo Corporation of Japan will also be a strategic investor and have a preferred licence.

[zipstuck] 11/9/2019 17:23

In the last trading statement in August they referred to the product launch with Sumitomo in Q4. This is timed for the launch with Sumitomo also investing.

[shanklin] 11/9/2019 16:12

From what I can gather it is intended to provide an additional route to market for WATR.



Given the serious legal background of the other three directors, one might hope that this is not as bad as it sounds.

[effortless cool] 11/9/2019 16:12

It makes a tangled web more tangled.

I'd be happier if they just stuck to finding and fixing leaks.

As you say, however, there is not a big sum involved.

[silverfern] 11/9/2019 16:05

the amount being raised for the new company is small, tiny really. It provides an additional profile thats all, and it cements the relationships that already exist between companies that have mutually beneficial goals but are each spending (or maybe wasting) money on proposing the same thing. By each pooling a small investment and getting buy in from institutions to finance the rest seems to me sensible. WHy do you see that as negative?

[glaws2] 11/9/2019 15:55

Tis difficult and it all sounds a little grubby.

[shanklin] 11/9/2019 15:51

Would anyone like to try to translate today's RNS into plain English?

[shanklin] 08/8/2019 21:03

Due to increased investment in the business, earnings are not above expectations, at least in the short term. The hope is that there will be a resultant much improved profit growth going forward

[mctmct] 08/8/2019 11:56

Strange that a good update didn't lead to a rise in share price Perhaps everyone is on holiday.

[zipstuck] 08/8/2019 07:16

Q3 investment in e-commerce and video display technology along-side Sumitomo Corporation investment and commercial launch in Q4 after previously announced demonstrations in Tokyo during Q1 and prior development work with Tagasauris and Flo Technologies during 2018


This was the bit of news that has been absent form the last couple of updates which gives me confidence in overseas expansion

[masurenguy] 07/8/2019 07:39

Good trading update !

"Results are ahead of market expectations for revenue and comfortably in-line with expectations for profits before taxes. The Company continues to perform strongly with its multinational growth plan. Global demand for water infrastructure products and services remains strong. Interim Results for 1H 2019 will be published in mid-September."

[effortless cool] 22/7/2019 13:04

The same text with charts is posted on the Stockopedia thread.

[effortless cool] 22/7/2019 13:03

For margins, ideally I would like to project at segment level, as the different segments have very different cost of sales and operating cost characteristics. Unfortunately, however, the published segmental information does not give a breakdown between costs of sales and administrative expenses, just a segmental profit figure. I therefore take a two-pronged approach, looking at company-level and segment-level data separately, and then adjusting assumptions to produce a close reconciliation.

Company-level cost of sales is hard to forecast due to the constantly evolving mix. Franchisees transferring to corporate-owned reduces gross margin, growth in B-to-B work relative to B-to-C reduces gross margin. Thus, gross margin is trending down, but it is near-impossible to differentiate any underlying trend from business-mix effects.

My forecast selections on gross margin are below the medium-term downtrend but above the short-term downtrend, so perhaps err on the optimistic side.

For administrative expenses, I back out other income, depreciation, amortisation, share-based payments and non-core expenses, all of which I forecast separately. This leaves me with figures for “underlying administrative expenses”. Relative to revenue, this shows pronounced but reducing seasonality and a strong downwards trend as operational gearing kicks in. I have assumed continuation of this trend.

My alternative approach looks at segment profit (which totals to company profit, after adjusting for “unallocated head office costs” and “one-time costs”) relative to segment revenue to produce what I term an “adjusted operating margin” (AOM) for each segment.

For Franchise Royalty Income, this showed consistent strong seasonality and a slight downwards trend until 2018, when those historical relationships broke down entirely in the two half year periods. The overall figure was consistent with prior years, however. For projection, I have assumed that 2018 was a one-off and that the seasonality will reappear. My projected AOMs are lower than any previous year apart from 2014, and may err on the prudent side.

The AOM for Franchise-Related Activities also shows a pronounced seasonality in the earlier years, but that has diminished to practically nothing by 2018. I have assumed that this near-flat OEM continues in my projections.

AOM for Corporate-Owned Stores has been erratic but is trending up, with the least few periods sitting above trend. I have assumed this recent pattern continues in my projections, which is consistent with the management outlook. Seasonality is somewhat obscured by noise in the data, but I have assumed continued weak seasonality.

The emerging AOM for International Corporate Activities shows an upwards trend and clear seasonality. I have assumed that these will continue.

I reconcile adjusted operating costs forecast on this segmental basis back to the equivalent figure at company level (which introduces an additional assumption as to the proportion of unallocated head office costs in the forecasts). The company level projections drive my forecasts although, at present, using the segmental basis would produce better results. Given the significant uncertainty in the forecast numbers, I am happy to have this prudential indicator

[shanklin] 16/7/2019 08:18

I have replied on Stockopedia to your post there.

[shanklin] 16/7/2019 07:57

Thank you EC, Will take a look.

[effortless cool] 15/7/2019 21:21

Martin,

I have posted my revenue charts on Stockopedia. Margins are more complicated, so it may take me bit of time to get round to them.