Water Intelligence Share Discussion Threads

[this_is_me] 17/11/2022 07:38

Sales, as of the end of Q3 2022, have now surpassed the amount of sales for full year 2021

Still making money despite the costs of rapid expansion. It is all looking good for the future.

[dudishes] 16/11/2022 13:55

Still hold.

[waldron] 22/10/2022 18:54

Consensus



Mean consensus BUY

Number of Analysts 3

Last Close Price 605,00 GBX

Average target price 1 302,50 GBX
Spread / Average Target 115%

High Price Target 1 560,00 GBX
Spread / Highest target 158%

Low Price Target 1 000,00 GBX
Spread / Lowest Target 65,3%

[waldron] 05/10/2022 10:11

Outlook

Water Intelligence is well positioned for the future whether it is characterized by persistent inflation or a shift to recession from higher interest rates. Our balance sheet is strong with $21.9 million in cash as of 30 June 2022. Cash, net of bank borrowings, is $5.3 million as at 30 June 2022. Credit availability under our expanded facilities is $7 million as of 30 June 2022. The terms of the bank debt are favorable with a fixed rate of approximately 4.9% and amortization spread through 2027. Deferred consideration to franchisees from reacquisitions at 30 June 2022 is $13.7 million with payments spread through 2026. Given EBITDA growth and readily available cash and credit, Water Intelligence has sufficient capital to meet its obligations, reinvest in growth and even consider selective acquisitions. With a strong US dollar forecast through at least 2023 and since Water Intelligence generates cash from operations largely in dollars, we are reviewing opportunities internationally that have become relatively more attractive.

In evaluating any tactical changes, Water Intelligence does have operating flexibility. If the medium-run is marked by inflation, Water Intelligence has made significant investments in its Salesforce.com infrastructure that is expected to deliver operating efficiencies in 2023 and beyond. On the other hand, if the medium-run is marked by recession due to rising US interest rates, Water

Intelligence also has the ability to navigate this given its diverse matrix both in terms of solutions covering water and wastewater and in terms of the variety of its customers from homeowners to businesses like insurance to municipal. Both private and public spending for water infrastructure solutions are expected to increase irrespective of macroeconomic trends.

Long-run.We are mindful of macroeconomic variables. However, we remain optimistic about the global opportunities in front of us and management's ability to adjust as we move from short-run monitoring to medium-run tactics. For our long-run outlook, global market demand for water and wastewater infrastructure services continues to increase. To a degree, we are acyclical because of the importance of water and wastewater solutions especially as climate change creates more anomalous conditions that puts stress on infrastructure at all levels - residential, commercial, municipal.

Importantly, as a competitive strategy matter, in a largely fragmented market of local service providers, we are distinguished from our competitors because we have: a well-recognized American Leak Detection national brand; proprietary technology; established US business-to- business channels; an installed base of operations in over 150 locations across the US and in the UK, Canada and Australia; and investments already made in the leading customer relationship management system in the world that will come on line fully during 2023. With these operating attributes and against a landscape of smaller less-adaptable players, we should be prudent as to tactics but confident in our growth plan and ability to capture the market with a platform company as the market leader in our category.

Patrick DeSouza

Executive Chairman

September 22, 2022

[waldron] 05/10/2022 10:08

no news but still holding up well

[waldron] 25/9/2022 18:48

Needs some really positive news to put some zest in the sp

strong support at 560p it seems

[this_is_me] 22/9/2022 07:47

Expanding rapidly and also doing so without making losses.

A fixed rate of 4.9% on bank debt to 2027 is really good.

[sarkasm] 22/9/2022 07:38

Outlook

Water Intelligence is well positioned for the future whether it is characterized by persistent inflation or a shift to recession from higher interest rates. Our balance sheet is strong with $21.9 million in cash as of 30 June 2022. Cash, net of bank borrowings, is $5.3 million as at 30 June 2022. Credit availability under our expanded facilities is $7 million as of 30 June 2022. The terms of the bank debt are favorable with a fixed rate of approximately 4.9% and amortization spread through 2027. Deferred consideration to franchisees from reacquisitions at 30 June 2022 is $13.7 million with payments spread through 2026. Given EBITDA growth and readily available cash and credit, Water Intelligence has sufficient capital to meet its obligations, reinvest in growth and even consider selective acquisitions. With a strong US dollar forecast through at least 2023 and since Water Intelligence generates cash from operations largely in dollars, we are reviewing opportunities internationally that have become relatively more attractive.

In evaluating any tactical changes, Water Intelligence does have operating flexibility. If the medium-run is marked by inflation, Water Intelligence has made significant investments in its Salesforce.com infrastructure that is expected to deliver operating efficiencies in 2023 and beyond. On the other hand, if the medium-run is marked by recession due to rising US interest rates, Water Intelligence also has the ability to navigate this given its diverse matrix both in terms of solutions covering water and wastewater and in terms of the variety of its customers from homeowners to businesses like insurance to municipal. Both private and public spending for water infrastructure solutions are expected to increase irrespective of macroeconomic trends.

Long-run. We are mindful of macroeconomic variables. However, we remain optimistic about the global opportunities in front of us and management's ability to adjust as we move from short-run monitoring to medium-run tactics. For our long-run outlook, global market demand for water and wastewater infrastructure services continues to increase. To a degree, we are acyclical because of the importance of water and wastewater solutions especially as climate change creates more anomalous conditions that puts stress on infrastructure at all levels - residential, commercial, municipal.

Importantly, as a competitive strategy matter, in a largely fragmented market of local service providers, we are distinguished from our competitors because we have: a well-recognized American Leak Detection national brand; proprietary technology; established US business-to-business channels; an installed base of operations in over 150 locations across the US and in the UK, Canada and Australia; and investments already made in the leading customer relationship management system in the world that will come on line fully during 2023. With these operating attributes and against a landscape of smaller less-adaptable players, we should be prudent as to tactics but confident in our growth plan and ability to capture the market with a platform company as the market leader in our category.

[waldron] 20/9/2022 13:00

INSUFFICIENT NEWS FLOW SO EXPECT share price TO DRIFT

[adrian j boris] 20/9/2022 11:15

CURRENT share price seems reasonable

expect a rise eventually

walders et al would no doubt agree

[dudishes] 20/9/2022 06:35

Took eye off ball. Remains a chancer

[disc0dave45] 14/8/2022 13:41

Looks like the last II purchases were via the November placing…..bet they were not too impressed at being over 50% down on those after around 7 months after. Plus rubbing salt in the wound not long after by the CEO’s wife offloading a chunk at 1180 (bit of a cheek IMO, begging bowl at £12 then sell at £11.80 - sort of says you’ve paid too much chaps).
Volume yesterday was double the 3 month average, but suspect it’s just traders.

[johnkidd1] 14/8/2022 11:22

Only 4.5 million shares out of 17 million issued not held in long term investment vehicles. Probably another 2 million held in private investors accounts long term.Makes for quite a tight market. Recently decent rises on daily volume of 5 to 10000 shares traded.

[disc0dave45] 14/8/2022 11:06

Dud
It was tongue in cheek, the rise before results and the inevitable fall on news.
Although it does seem a bit early with a month still to go!.
Nice timing on your 592

[dudishes] 14/8/2022 09:59

Disco, you most certainly got it wrong.

Waldron and GG are in Veolia, other French users have contributed, without pushing.

Eff/cool has no doubt won or lost on swings.

They were all here long before me.

Having gone through posts from start, I see no pump!

At 935 (recommended by writes of Waldron), I may dump!

AS stated, bought at 592.

We expats have plenty of time to live and study the jungle.

Boss: sold near the top, I think £11 or so, did you check that?

Just before the dive.

A case of DYOR what?

Dud

[faz] 13/8/2022 15:16

Been the case for a while dave, the market cap seems high, but the company has only grown albeit a good chunk by reaquiring its licences from franchises. I have taken a chunk for the run up to results.

[disc0dave45] 12/8/2022 15:52

Hi JohnI have thanks.My comments were more in reference to the significant upward momentum recently leading I guess to interims next month......which usually means it will pullback on results day. Caught my attention (again) so started to take a look, wasn't meant to be a deramp but noticed certain posters on here would take it that way :)But too expensive for me, PE 35x (48x when adjusted for PPP loan & diluted). Does the rating matter though if there's a share price profit to be had?!, decent growth too so have to pay for that, but that much!.

[johnkidd1] 12/8/2022 08:50

Try looking at results 9 June and then judge for yourself. A quality growth stock caught up I in the general sell off. Accumulate. Can't really go wrong,with aging water pipeline infastructure in developed countries and the need urgent need to stop unnecessary water wasteage through leaks.

[disc0dave45] 10/8/2022 15:04

Is this some pump before the dump on results? or is there some other reason.

[dudishes] 09/8/2022 15:13

Tks M!

Consencsus 1421!

My target 13.95, I'll settle for 13!

cheers