28th Oct 2019 09:56
(Alliance News) - Water Intelligence PLC on Monday said its revenue in 2019 so far has beaten market forecasts, while profit remains "comfortably in line".
Shares in Water Intelligence were up 7.9% at 287.00 pence in London on Monday morning.
Both the leak detection and remediation firm's statutory and amortisation-adjusted pretax profit were in line with third-quarter expectations and expectations in the year to September 30.
The company also said its revenue for 2019 through the third quarter, which ended September 30, was "ahead of market expectations", including revenue growth of 34% in the third quarter of 2019 to USD24.7 million from USD18.5 million.
Within the USD24.7 million, American Leak Detection franchise royalties increased 4.1% to USD5.1 million from USD4.9 million, which Water Intelligence said implied "USD67 million in year-to-date gross sales to third parties from which royalty is derived".
In terms of franchise-related activities, sales increased 45% to USD6.1 million in the third quarter from USD4.2 million the year before.
US corporate-operated locations revenue increased 47% year-on-year to USD10.7 million from USD7.3 million. International corporate-operated locations revenue grew to USD2.8 million from USD2.2 million, a 27% rise. These include UK municipal operations, UK-managed municipal operations in the US, and full-service operations in Ontario, Canada and Sydney, Australia.
Water Intelligence reported its net cash at USD2.7 million.
Executive Chair Patrick DeSouza said: "Global market demand for solutions to water loss from leakage is strong and continues to grow. We are accelerating our growth plan by building on our base of customers and adding more business lines such as municipal sewer and wastewater diagnostics and consumer sales of water / home services-related products and services via e-commerce. We are confident and have produced another strong set of numbers for both franchise and corporate-run operations across all of our key performance indicators.
"Moreover, we believe strongly that our technology investments will enable us to sustain our growth trajectory in 2020 and beyond. Given our installed base of service operations, especially across the US, and the strength of market demand for both potable and non-potable water infrastructure solutions, we have a considerable opportunity for realizing significant value for our shareholders."
By Anna Farley; [email protected]
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