Increasingly losing patience here as the rhetoric (when it does come) never seems to match the company financials.
The integration with Saleforce was pitched over 2023 as an enabler to increase growth. Delivered late, but at least complete, but where is anything from the company to show the before and after metrics attributed to this investment. How have the supposed efficiencies fed through? The new training centre for onboarding new staff, how has that gone? Is the backlog diminishing? Are we stepping up marketing to gain custom to utilise these resources? Have we not won one significant contract since Feb 2024?
Just a contradiction between the boards words and what is a measurable tangible delivery. Yes there is growth but not at the rates we need.
Let’s see what the Feb results provide. Like I said they work in a fragmented market with supposedly superior technology that supports a one stop shop for customers. Exploit it. |
Agree. Economic headwinds not helping and was unable to break out of the range for now. |
Falling in to its normal trading pattern unfortunately. Not able to push forward over 430-440 and hold for a new opening to higher highs. Obviously not helped by increasing yields on gilts punishing government plans and by default small caps as risk aversion rises with the levels of compensation available.
The new trading range may now only be achieved by company news and that is something the company is shy on. That said there are signs of some volumes but you have to question why there are no presentations detailing the metrics from a 2 year investment phase. It should be shining through by now.
Great sector, great potential market, pretty recession proof due to necessity of service. This should be a home run |
Someone happy to dip in £70k. |
Must break out in the next couple of days. |
Nice momentum. Look for a break over 430 to signal a break out. |
Sorry I meant I was a new investor. |
Tricky Red
Who is the new investor you mentioned? |
 Well I see this as a step year change for the company if they can get their internal structure tuned to match the market demand. Most see US Smaller companies as a beneficiary of the Trump administration and although quoted in the UK that is essentially what it is. The location listing conditions is maybe a debate for a later post but let’s say we would have a very different mkt cap if listed in the US (but currently too small)
The major investment phase is complete along with the embedding of a corporate strategy that embraces both the best of the franchise model and in house methodology. I am also a keen supporter of the CEO. The conditions are in place for a good year if at a macro level tariffs and potential unemployment along with inflation are kept in check (not an easy task). However, those are outside of the companies control. What they must do is demonstrate that the innovation, investment, product development and strategy lead to increasing sales and importantly grow margins. I am betting it is harder to fail than succeed. The market is enormous and competition fragmented. Ripe for consolidation
If we can break 430 the chart favours a rapid rise. ‘Educated̵7; fingers crossed |
tiger60- Very fair analysis - Been on watch list for ages but as you say going nowhere. Could well (imo) at risk of being downplayed under Trumpism.
Also has a slight smell of being a lifestyle company (Possibly unfair) |
Interesting link. Any chance of posting full article?
Firstly, I hold here and enthusiastic about the sector as a whole which will only grow and consolidate. However, the last few years has been tough and the share price movement mirrors the ROE reduction over said years.
We have had two years of investment and software integration to streamline the offering but yet to see the benefits. The last RNS related to new contracts was the start of February last year. True not every contract is worthy of a news release but does highlight a lack of investor engagement.
In addition, the buyback is a farce and should never of been initiated. Either further internal investment or a small dividend is preferable. Buybacks are limited each day based on a % of daily trades. Daily trading volumes are minimal resulting in buybacks limited to a couple of thousand. It will take a year to buy any notable volumes.
A lot hangs on the Dallas franchise being brought in house and the new manager. Macro wise this looks a winner all over but we need that net income up and the investments to shine through. Patience needs its reward or others will walk. Gear up the investor engagement and aggressively set targets. The market is there go get it. |
Same here. Some good volume over the last 5 trading days with a smgentle rise in the share price, looks good. |
New investor here. Liking what I see. |
Revenue grew by 10% to $63.5 million, fueled by a 13% increase in U.S. corporate sales and a 26% rise in international corporate sales. Adjusted EBITDA climbed 11% to $11.9 million, maintaining a solid 19% margin, while statutory PBT rose 7% to $6.1 million. The company’s financial position remains strong, with $12.7 million in cash and a low net debt-to-EBITDA ratio of 0.84.
The company is advancing its four-pronged capital allocation plan, focusing on organic growth, proprietary technology, strategic acquisitions, and share buybacks. Key achievements include the opening of a new training center in Connecticut to scale technician capacity and the planned 2025 U.S. rollout of Pulse, a patented sewer diagnostic device that has already boosted the U.K. municipal business.
Strategic acquisitions in 2024 included a fast-growing Irish plumbing company and the ALD Dallas franchise, bolstering American Leak Detection’s (ALD) market presence. The Dallas-Fort Worth hub is set to become ALD’s national headquarters, streamlining operations and enhancing scalability. Additionally, share buybacks commenced following shareholder authorization, aligning with the company's commitment to delivering shareholder value.
hxxps://wealthoracle.co.uk/detailed-result-full/WATR/1057 |
A very good read if you have a spare few minutes:
hxxps://theoakbloke.substack.com/p/watr-leader?r=2o5lxe&utm_campaign=post&utm_medium=web&;triedRedirect=true |
The top franchisee has been put in charge of the whole operation in the USA. |
Water Intelligence PLC Strategic Reacquisition of Dallas, Texas Franchise
04/11/2024 7:00am
RNS Regulatory News
RNS Number : 7837K
Water Intelligence PLC
04 November 2024
logo 3.tif
Strategic Reacquisition of Dallas, Texas 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 the strategic reacquisition of its franchise in Dallas, Texas within the Group's core American Leak Detection ("ALD") subsidiary.
Key terms of the Acquisition
The transaction involves consideration of both cash and stock options. $12 million in cash is spread through 2027 and based on performance of $2.3 million in adjusted profits for 2027. $5 million was paid at Closing based on a trailing twelve months pro forma of $6 million in sales and $1.0 million in adjusted profits and $0.3 million in total assets. $2.5 million is scheduled to be paid in 2025 based on a pro forma with increasing profit before tax. Options for 200,000 ordinary shares are issued in amounts and at exercise prices as follows: 100,000 at $6.25 per share; 35,000 at $7.50 per share; 35,000 at $8.75 per share; and 30,000 at $10.00 per share respectively and vest over 4 years. The purchase price includes all assets required to conduct operations, including trucks and equipment. The transaction is accretive for the Group's shareholders.
Strategic rationale for the Acquisition Including Appointment of CEO for ALD
Today's transaction is strategic for the Group. First, and most importantly, Will Knell, owner of the Dallas franchise is appointed CEO of ALD, the Group's core subsidiary representing approximately 85% of the Group's revenues. Mr. Knell has significant experience in operations and is well respected among the franchise System having previously been awarded Franchisee of the Year. The Dallas franchise represents the single largest location in terms of sales in the entire franchise System and is fast growing. Second, strategically there are significant operating synergies between the Dallas location and ALD's neighboring corporate-operated location in Fort Worth, Texas. Integration of both operations will create cost savings. Moreover, in terms of future revenue growth and scale, the Dallas-Fort Worth metroplex is expected to rival New York and Los Angeles in size and concentration of disposable income by 2030. Third, the Group plans to move the headquarters of ALD to Dallas during 2025 and to build a training center similar to the one the Group opened in Bridgeport, Connecticut during Q3. The centrality of the Dallas / Fort Worth location in the United States will enable the Group to accelerate its strategic growth plan organically and with its national partners especially insurance companies and technology product companies.
2025 and Capital Allocation Plan
The Group has sufficient resources on hand to execute its growth plan; moreover, the Group remains under-levered enabling it to apply more capital to accretive opportunities that may emerge. With today's acquisition, the Group has strengthened its management team and execution capabilities to advance more rapidly both organic growth and additional acquisitions for 2025 pursuant to its previously announced capital allocation plan.
Executive Chairman, Dr. Patrick DeSouza commented: "When we provided our Interim Update in September, we indicated that we were confident about the future and that our Next 50 Initiative would put an accelerated growth plan in place. Today's announcement reinforces that message because beyond the strategic nature of the Dallas reacquisition, we are advancing the execution leadership of the Group in a significant way.
Congratulations to Will Knell who is an outstanding leader and a perfect fit for the future of the Group. Our entire franchise System, representing over $100 million in gross sales to customers is excited by the appointment of Will and an updated growth plan that we will be unveiling prior to year-end. Will's appointment and the move of ALD's headquarters to Dallas is a great way to kick-off our Next 50 Initiative named after our fiftieth anniversary celebration of the establishment of ALD two weeks ago at the Group's annual convention."
Will Knell, CEO of American Leak Detection added: "I truly appreciate the confidence that the Board, management and our franchise System have in me. On previous occasions, including most recently at our fiftieth anniversary celebration of American Leak Detection, I have met with some of our institutional and individual investors and welcome their support and the opportunity that our team has to deliver for our shareholders.
Our Dallas franchise operation and the neighboring corporate-operated location in Fort Worth have served as a model testing site for the various technology investments that the Group has made ranging from Salesforce to LeakVue. Leveraging our strong results and our operating experience as "super-users", we expect to help the Group scale with these investments and realize gains in organic growth in 2025 and beyond.
It is very exciting to help the Group transform water infrastructure services as a platform or "one stop shop" across the United States and, along with my colleagues in the UK, Ireland, Canada and Australia." |
Does anyone have an opinion on whether or not to count the b shares in a calculation of market cap?
On the one hand they are voting shares, but, on the other they have no economic rights. If the reason we own shares is to share in the profits of the company and the b shares do not then should they be discounted?
Are they not essentially treasury shares with a vote? |
Will be well underwater by the end of this month..stay long |
Stay long right down Dudishes;)) |
Bwana haha haha..sure stay long ;))) |
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