9th May 2019 13:35
LONDON (Alliance News) - Water Intelligence PLC on Thursday reported a sharp rise in profit and revenue as the company's US operating subsidiary enjoyed a significant rise in sales.
In 2018, Water Intelligence - which provides technology that detects water leaks - reported pretax profit of USD1.8 million compared to USD1.1 million in 2017, a 64% jump.
The company's revenue increased 45% in 2018 to USD25.5 million from USD17.6 million in 2017.
Water Intelligence's administrative expenses increased 37% to USD17.8 million from USD13.0 million.
The company said its total system-wide sales - which includes franchisee gross sales and corporate-operated sales - passed USD100 million in 2018.
"We have an exciting opportunity ahead providing solutions for infrastructure problems affecting the world's most precious resource. Global market demand for environmental solutions, especially water-related, as evidenced by initiatives such as the Green New Deal, is growing irrespective of local political and economic conditions; this is good news for the company and its investors," said Executive Chair Patrick DeSouza.
Water Intelligence did not declare any dividends in 2018, same as the year before.
The company's main operating subsidiary, American Leak Detection Inc reported pretax profit growth of 53% and revenue growth of 45% compared to the year before.
"We had another remarkable year both in terms of financial and operating performance. We delivered on our annual commitment for sustainable, multinational growth," said DeSouza. "Our core American Leak Detection business grew strongly year-over-year as consumers continue to face higher water bills in the US and our business-to-business channel delivers more jobs from insurance companies seeking to minimize claims by deploying our minimally invasive leak detection solutions."
Business-to-business sales in the US almost doubled in 2018 with parts & equipment sales increased 4%.
Water Intelligence said it is "excited" about its 2019 prospects. The company said it had "accelerated its pace of execution" and "achieved wins in every part of the business" in 2019.
DeSouza added: "We remain confident about delivering on our vision to create a world-class water infrastructure services company. The addressable market is huge and technology is transforming the nature of solutions. We are in a great position to help lead change with respect to a natural resource that is precious and inspires passion."
Shares in Water Intelligence were down 11% Thursday at 363.11 pence each.
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