Water Intelligence PLC Initiation of Sales of Sewer Diagnostic Product (7527E)

TIDMWATR

RNS Number : 7527E

Water Intelligence PLC

10 November 2020

Water Intelligence plc

Initiation of Commercial Sales of New Proprietary

Sewer Diagnostic Product

Brisbane Franchise Reacquisition Completed

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 initiation of sales from Orca (TM) , its proprietary sewer diagnostic product. Such initiation of sales has been delivered on schedule, as guided by the 3Q Trading Update previously released. Commercialization reinforces the Group's leadership in using technology to deliver enhanced value for water infrastructure services. Such value is important both for the Covid-marketplace and for our Green Economy future.

Orca has been in development at the Group's UK-based, Water Intelligence International subsidiary (WII). The proprietary product uses acoustic technology to identify sewer blockages in municipal pipes more effectively than any competitive solution. WII has paid engagements starting with 4 large municipal customers in the UK. The Group expects that such engagements will lead to a broader rollout in 2021 in the United States, Canada and Australia within a subset of the Group's 140+ locations.

Of note, especially for ESG investors, Orca is important to address the collateral effects of climate change. In one of its first commercial engagements, WII deployed Orca working with Thames Water and Lanes Group - the leading provider of wastewater solutions in the UK - to identify which sewers can handle the increased likelihood of flooding - a by-product of climate change.

Orca and its derivative product - Pulse(TM) - are also of critical need in a Covid-influenced marketplace. Sewer clogs and wastewater overflow are becoming more frequent everywhere as citizens have problems disposing of sanitary wipes while sheltering in place. Such blockages are causing second-order public health issues.

The Group's Orca product roll-out strategy for the US will be the same as that previously used for WII's municipal services. The Group will leverage the sales footprint (140+ locations) and brand reputation for water infrastructure services of its American Leak Detection subsidiary ("ALD"). The deployment of the proprietary Orca product will reinforce the current sales of WII municipal services in the United States, increasing that business line's growth trajectory.

WII will also be working with ALD franchisees to commercialize WII's Pulse product during 2021. Pulse is a sewer diagnostic product for residential application. Product development was launched at the annual Franchise Convention in Arizona last March as previously announced. Field tests started in the U.S. during 3Q.

Brisbane

The Group also announces the completion of its reacquisition of the American Leak Detection franchisee in Brisbane, Australia. The Group, on 30 September, announced the signing of the reacquisition transaction pending certain closing requirements. As noted in that release, the Group now has corporate operations in the three largest population centers in Australia. These corporate operations, in addition to contributing direct revenue and profits to the Group, will support ALD franchises in Australia, reinforcing the growth of royalty income for the remaining franchise locations.

Commenting on the Group's performance, Executive Chairman, Dr. Patrick DeSouza remarked: "We are pleased with the initiation of commercial sales of Orca. The product is timely and will add to the growth of our Water Intelligence International subsidiary. Such sales, combined with our recent insurance customer wins, will reinforce our growth trajectory for the remainder of 2020 and 2021. As noted in the release, Orca and its derivative product Pulse contribute solutions for a Covid-marketplace and, more broadly, for the Green Economy. We look forward to continuing to increase our share of a big global market."

Enquiries :

 
 Water Intelligence plc 
 Patrick DeSouza, Executive Chairman           Tel: [phone] 
 Adrian Hargrave, VP Corporate Development     + 44 (0) 7775 701 838 
 WH Ireland Limited - NOMAD & Broker           Tel: [phone] 
 Adrian Hadden 
 James Sinclair-Ford 
 Matthew Chan                                 Tel: [phone] 
  Dowgate Capital Ltd - Broker & 
  Advisor 
  Stephen Norcross 
 
 
 

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November 10, 2020 02:00 ET (07:00 GMT)