Water Intelligence Share Discussion Threads

[grupo] 21/12/2023 07:41

21 December 2023

Water Intelligence plc

Expansion of Credit Facility

Water Intelligence plc (AIM: WATR.L) (the "Group" or "Water Intelligence"), a leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water is pleased to announce that it has agreed with M&T Bank to expand its credit facility for acquisitions.

Reinforcement of Growth Strategy

The Group recently provided a Trading Update on 5 December 2023 in which it expressed a favorable outlook for 2024 and beyond. It also highlighted current investments to support organic growth, such as a state of the art training centre in Connecticut to meet market demand for its solutions including anticipated demand from additional national insurance contracts.

The Group also noted that it had a strong balance sheet with cash and cash equivalents of $17.2m (at 31 October 2023) and a relatively low degree of leverage, enabling it to pursue accretive acquisitions to complement organic growth. The Group's Net Debt (including all bank debt and deferred consideration) to Statutory EBITDA TTM ratio at the end of October was 0.58. To further enhance its capabilities for a strong 2024, the Group announces today an expansion of its credit facility to make available $5 million. Even with an additional $5 million deployed, the Group would still have a conservative position in terms of leverage.

Highlights of Enhanced Credit Facility

-- Increase Acquisition Line of Credit by $5 million (the "Facility")

-- When amounts are drawn from the Facility, the loan amount converts into a 5-year term loan ("Term Loan")

-- Interest rate on the Term Loan is a floating rate that is capped at 8% through the use of a customized financial product; moreover, if market rates decrease during the 5 year period, then Water Intelligence gets the benefit of a reduction of the interest rate for the underlying loan.

-- Cost of capital for the facility is kept at the lowest level relative to overall market conditions

Commenting on the Group's facility, Executive Chairman, Dr. Patrick DeSouza remarked:

"We look forward to a strong 2024 as we have significant available capital to deploy for increasing shareholder value. We appreciate the help of M&T Bank to structure a facility that helps us manage our cost of capital to the lowest level relative to the market."

[its the oxman] 06/12/2023 14:24

Why the sell off ?

[gibbs1] 25/11/2023 16:09

In main for those interested in water

[brummy_git] 25/11/2023 15:54

Hi giibs1 - Why is the Total article relevant to #WATR Water Intelligence?

[fastbuck] 29/9/2023 08:51

Strange price action, the USD strength over the last month should be a win for the company as their USD earnings look stronger vs with £ Market Cap bringing down the P/E

[scepticalinvestor] 27/9/2023 15:43

Indeed. V high quality company but looks like the 2s are coming

[pugugly] 27/9/2023 10:33

Still falling - Looks as though best policy might be to continue sitting on hands to keep fingers away from buy button.

[kalai1] 19/9/2023 15:03

Water Intelligence Plc posted its Interims for the 6 months ended 30th June 2023 this morning. Results were in-line with market expectations with strong profit growth as the Group continues to execute on its long-run growth plan. Revenue increased by 9% to $38.7 million, statutory profit before tax increased by 21% to $4.2 million with basic EPS up 18% to 16.4c. The balance sheet remains strong, net cash was $1.75 million. Valuation is average with forward PE ratio at 13.5x mid third for the Machinery, Equipment & Components sector. The share price lacks positive momentum and is into its 3rd year of correction. WATR is a share to monitor for the time being...

...from WealthOracle

[pugugly] 19/9/2023 14:09

To coin a pun - Market reaction today suggests share price has sprung a leak - No dividends to block the leak.

[bertiebingo] 19/9/2023 09:17

I would suggest this is a commercial service company. Given the profit and FCF margins a PE (2024) 13* looks reasonably attractive.

[pugugly] 19/9/2023 08:56

PE RATIO still far to high (imo) for a utility company over there but listed in UK.--

[this_is_me] 19/9/2023 08:08

All the numbers, apart from the share price, are going steadily in the right direction. If you have a leak it needs fixed and if you are the best at fixing it your business will continue to grow.

[florenceorbis] 19/9/2023 07:25

Strategic Outlook

We will continue to execute our long-run growth plan to create a One-Stop Shop because we operate in a market where customer demand for solutions to water and wastewater problems will remain strong given the rising price of water and the reality of aging water and wastewater infrastructure. Because of underlying market demand, we are still hiring to put more service vehicles on the road and training more technicians to deploy our minimally-invasive technologies. Such new hires are an operating expense but should be considered an investment given the length of time it takes to train a leak detection professional and the importance of fully-trained technicians for future revenue generation based our USP of pinpointing water and wastewater leaks with minimal destruction. While we have the resources to make this investment, we will be prudent and monitor the general macroeconomic picture.

Our prior technology investments will help manage our people investments in growing the business. On 11 September, we released an update on our new technology offerings that we are building into our sales plan for 2024: IntelliDitch (irrigation and stormwater run-off); Pulse (Resident and Municipal); LS1 (Municipal); CreatorSuite (ecommerce).

First, each of these offerings will add to our matrix of solutions - residential, commercial, municipal, clean water, wastewater - and enable us to further position ourselves to customers, whether homeowners or insurance companies, as a One Stop Shop. For example, with our Pulse product, rapid sewer diagnostics is a natural upsell during a visit to a home for water leak detection as most homeowners have insurance or warranty policies for both water damage and sewer blockages. This offering will also help to drive our business-to-business channels.

Having a matrix of solutions also helps with navigating changes in market segments and the management of our workforce. As noted above, the slowdown in new construction because of the spike in interest rates may be offset by a focus on aging rental properties, with problems such as sewer blockages. Our technicians are all cross-trained on the various technologies, making it easier to redeploy the technicians we have invested in. It should also be noted that our proprietary LS1 product for rapid, automated municipal surveys is geared for deploying headcount with less training than is required for pinpoint leak detection. As this offering is rolled-out, we are planning on using such surveys as a bridge for technicians to generate sales while training for full leak detection capabilities.

Second, our software infrastructure enabling customer relationship management (Salesforce) and video ecommerce (CreatorSuite) applications positions us to be part of the customer's entire journey across their lifecycle with sales opportunities to provide solutions to various problems related to water and wastewater. Given our sales footprint across the US and in the UK, Australia and Canada, we can also work with partner companies anywhere in the world to recommend their products to homeowners or property management. Related to demand for water and wastewater solutions, the development of the smart home is another sectoral trend that is expected to continue.

Our software infrastructure will also help with workforce management. With our Salesforce application, we will be more efficient with job scheduling for our technicians and achieve higher levels of service responsiveness to residential customers and business-to-business partners. We will also be able to better integrate work crews with trainees for on-the-job training. With our CreatorSuite video technology, we can not only use it for ecommerce but also for distance learning with short form training videos housed in a secure environment for our technicians. Cutting the time for training will enable the Group to accept more sales opportunities instead of managing backlogs of work.

In navigating market conditions, we will continue to execute our growth plan. However, we are mindful that it all starts with fundamentals, especially profits. As we build on the fundamentals by simply adding more trained technicians and service vehicles because of market demand for water and wastewater solutions, we will be integrating prior investments that make our operations more efficient and lower customer acquisition costs.

Patrick DeSouza

Executive Chairman

September 19, 2023

[waldron] 24/7/2023 07:47

PUG

Have a great week

chuckle and cheers

take care

[pugugly] 24/7/2023 07:26

Interesting but still no sign of ever paying a dividend and valuation towards that of a software company rather than a utility.

However keeping on watchlist still as right area in as ever increasing need for water in the right place and leak reduction in a warming world but looking for a significantly lower entry point as coy appears bid proof/

[waldron] 24/7/2023 07:10

24 July 2023

Reacquisition of West Covina, California 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 reacquisition of its franchise in West Covina, California ("Acquisition") within the Group's American Leak Detection ("ALD") subsidiary.

Key terms of the Acquisition

The purchase price of $1.5 million in cash at closing includes all assets required to conduct operations, including trucks and equipment. The purchase price is based on the trailing twelve months pro forma of $1.3 million in revenue and $0.3 million in profit before tax, as well as total assets of $0.2 million. The transaction is accretive for the Group's shareholde

[waldron] 30/6/2023 10:08

Strong Support still continues to be maintained

Heres to a positive outlook and trend up by July END

Have a great day and weekend

chuckle and cheers

[waldron] 30/6/2023 10:05

Posting of Annual Report and Notice of AGM

Water Intelligence plc (AIM: WATR.L), a leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water, announces that the Company's 2022 Annual Report & Accounts has been posted to shareholders, along with a notice of an Annual General Meeting ("AGM") to be held on 26(th) July 2023 at 10:00 a.m. (BST) at the offices of WH Ireland Limited, 24 Martin Lane, London EC4R 0DR.

Copies of the accounts and notice of AGM are available from the Company's website, www.waterintelligence.co.uk.

[epo4eva] 29/6/2023 09:57

Pugugly
That placing was great business and timing. As a Water Intelligence shareholder, it didn't dilute my holdings by much and gave Water Intelligence plenty of cash.

[gibbs1] 22/6/2023 06:58

Currently bumping along at support levels

[pugugly] 21/6/2023 11:34

However those institutions who participated in the last placing must be very unhappy. 1,200 pence per share.

No dividends and can now get over 4%+ for cash - PE at 19.2 (Brokers note) looks rich to me for what is (imo) a basic support services company.
12 November 2021 Water Intelligence plc Results of Placing

Water Intelligence, a leading multinational provider of non-invasive leak detection and remediation services for both potable and non-potable water, announces the successful completion of its placing announced earlier today (the "Placing") which has closed significantly oversubscribed.

The transaction comprised both the placing of 1,016,667 New Ordinary Shares to raise approximately GBP12.2 million and the placing of 25,000 New Ordinary Shares through the exercise of options to raise GBP0.3 million.

A total of 1,041,667 new ordinary shares (the "New Ordinary Shares") were placed at a price of 1,200 pence per share (the "Placing Price"), raising gross proceeds of GBP12.5 million, in excess of the target size of at least GBP10 million. The Placing received strong demand from existing institutional shareholders as well as new long only institutional investors.

[this_is_me] 21/6/2023 10:57

Priced for growth since it seems to have very good prospects in an industry with potential and growth in revenue looks very good.

I'm not adding to my very small holding yet.