Water Intelligence Share Discussion Threads

[smithie6] 15/11/2021 10:49

ah....options exercised & sold by a franchisee

thanks for the info Metis20

[metis20] 15/11/2021 10:06

"The Company has also received notice that a franchisee has exercised options over 25,000 new ordinary shares of 1 pence each ("Option Shares"). The Option Shares are also expected to be admitted to trading at 8.00 a.m. on or around 17 November 2021. The Option Shares will be sold alongside the Placing Shares."

[smithie6] 15/11/2021 09:57

Effortless

the 25k shares sold by an employee were not sold by Souza ??

----

updated

sold by a franchisee not by Souza

[smithie6] 15/11/2021 09:54

'up, up & away
in my beautiful balloon'

:-)

hxxps://youtu.be/5akEgsZSfhg

[effortless cool] 12/11/2021 18:27

Thanks, metis20.

Pat de Souza has always cashed in some of his partly paid shares in previous fund-raisings. It is interesting that he has decided not to on this occasion.

[metis20] 12/11/2021 18:00

£12.5m raised.



The directors have not sold any. (From this morning's RNS:-
"Should the level of demand through the Bookbuild be significantly greater than the £10 million target, certain Directors and/or senior management of the Company may be prepared to sell a limited number of ordinary shares to help meet such demand.")

[effortless cool] 12/11/2021 13:47

Dozey3,

According to my projections, WATR will actually generate very little cash during 2022, even on my above consensus revenue projections, mainly due to deferred payments on previous franchise reacquisitions. By raising more cash now, they can continue to finance a high rate of earnings positive acquisitions.

Further, the fact that they have made a placing with institutions at a discount of just 4% should, in my opinion, inspire confidence.

[metis20] 12/11/2021 12:48

Very good to see that the last placing (July 2021) was at 920p whereas this one is at 1200p.

From the Q3 trading update

"The Group continues to perform strongly and by the end of Q3, has surpassed full year 2020 results for revenue, profits and EBITDA. Profit for full year 2021 is now expected to be at the upper end of consensus analyst estimates."

In the half year to June 2021 Reacquisition of Franchises was £4.8m.

[dozey3] 12/11/2021 12:41

Should be making enough cash to finance these small deals. Placing does not inspire confidence.

[sogoesit] 12/11/2021 09:03

Strong market response to 1200p placing price so far….
Market seems to believe that buying franchises is accretive at this price.

[metis20] 06/11/2021 12:30

WATR popped up in a table in an article "10 stocks with the strongest profit growth in the market" published by Stockopedia on Thursday.

[effortless cool] 01/11/2021 20:27

I've updated my valuation model to reflect the q3 trading statement but the outcome is not materially different from the September update in the header, so I have not bothered updating that.

[effortless cool] 01/11/2021 08:51

Another small but earnings enhancing acquisition in the UK announced this morning.



WH Ireland have upgraded again, based on this acquisition and the recent Q3 trading statement. Their numbers still look light to me.

[metis20] 01/11/2021 08:48

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 completion of the acquisition of Wat-er-save Services Limited ("WS"), a UK provider of leak detection, repair and water infrastructure services to UK commercial customers including universities and leisure resorts. WS is based in Dorchester, Dorset. The transaction is operationally strategic and earnings accretive for Water Intelligence shareholders.

The acquisition was led by the Group's UK-based Water Intelligence International ("WII"). WII is fast growing and providing water and wastewater solutions to UK-based utilities such as Thames Water. Importantly, WII is leading the Group's efforts to provide residential, commercial and municipal customers with an end-to-end suite of water infrastructure solutions for all size pipes. It already has several years of experience integrating the Group's residential and commercial offerings in the U.S. and Australia from its core American Leak Detection business with key municipal customers such as Flint, Michigan Water Authority and Sydney Water respectively.

Strategically, today's acquisition provides the Group with a more substantial sales footprint in the UK. It accelerates the Group's 2022 growth target in the UK as WII draws on its execution experience to provide a broader suite of solutions to residential, commercial and municipal customers in the UK.

Financially, despite Covid-related restrictions, WS executed approximately £0.95 million of sales and £0.25 million of profit before tax for the year-ended 30 June 2021. WS's net assets were £0.4 million as at 30 June 2021. The purchase price is £0.7 million on a cash-free, debt-free basis. The transaction has an effective date of 1 July 2021 (the "Effective Date") with Water Intelligence International integrating operations since then and providing subcontracted leak detection services to customers of WS. Completion last week reconciled all adjustments. During this period, the combined execution shows the ability to unlock operating synergies and, expand sales and improve profit margins from the acquired WS business. From the Effective Date through to Completion, WS already executed approximately £0.3 million in revenue and £0.1 million in profits.

The Group is pleased both with the accretive nature of the transaction and the growth opportunity in the UK with broader market capture expected in 2022.

Commenting on the acquisition, Executive Chairman, Dr. Patrick DeSouza remarked: "We are accelerating our growth plan as demand for water infrastructure services is only increasing all around the world. We are especially pleased to have the opportunity to grow our UK operation much further by adding a profitable base of new and complementary customers and a strong operating team."

[hsduk101] 21/10/2021 08:26

Great results!Good news that there is both Organic and Acquisition growth happening

[epo4eva] 21/10/2021 08:04

Todays update Q3 Profits up 46%
Water Intelligence plc
Trading Update Q3 2021
Now Surpassing Full Year 2020 Results

Revenue of $39.7 million up 43%
Statutory profit before tax of $5.9 million up 46%

[hsduk101] 06/10/2021 09:38

Going into the House building sector and getting a contract to detect leaks before homes are built is a good strategy. A starting additonal revenue of $1 million sounds quite good

Hopefully they can use this as a platform to build partnerships with other house builders in the US

Wonder who the house builder is?

[waldron] 06/10/2021 09:16

Market Movers
Nick Fletcher
PROACTIVE

08:47 Wed 06 Oct 2021

Water Intelligence lifted by first deal with a US house builder

A look at the major movers on the London market on Wednesday

Water Intelligence -

Water Intelligence PLC has seen its shares bubble up after it signed a deal with a house builder in the US Midwest.

The company's American Leak Detection subsidiary - which had previously concentrated on the insurance and property management markets - will now provide water and wastewater solutions for the building company's new construction projects.

The agreement to install and then test water and sewer lines for leaks is expected to increase group sales over the next 12 months by US$1mln or more. ALD expects the relationship to continue to grow over time as market demand for new homes outside of urban areas increases following COVID-19.

Executive chairman Dr. Patrick DeSouza said: "The group's precision leak detection and minimally invasive repair solutions are in high demand as both the price of water goes up and wastewater management regulation increases. Such regulatory trends are now translating into requirements for home builders with respect to sustainable design and deployment of water and sewer lines...

"We look forward to increasing our national accounts with home builders, leveraging the same process that we have developed with national and regional insurance companies."

Water Intelligence is up 7.56% or 83.5p at 1188.5p.

[effortless cool] 06/10/2021 09:10

It's certainly an interesting new area of activity and could offer material potential for future growth. It's already off to a flying start, being expected to add almost 2% to revenue with this first deal alone.

"The commercial relationship is expected to increase Group sales over the next 12 months by $1 million or more".

[epo4eva] 06/10/2021 07:36

RNS water is pleased to announce the launch of a new national account channel for its American Leak Detection (ALD) subsidiary. ALD will be leveraging both its platform of more than 150 locations across 46 states of the United States and its standardized workflow across its operating geographies to provide water and wastewater solutions for a leading home builder in the Midwest United States.