Good morning! It’s Paul here with the SCVR for Wednesday.

If you want to discuss the removal of the thumbs down feature, please don't do it here! There's a specific thread here [link now fixed] for this issue, where you can hear the logic for why it was done, and express your opinion, if you must.

Timing - today's report is now finished.

Agenda -

To start with, here’s something left over from yesterday -

Water Intelligence (LON:WATR) - 2020 Trading Update

Today's results & trading updates -

Sdi (LON:SDI) - a superb trading update on the back of strong orders

Avingtrans (LON:AVG) - a quick review of its interim results to 30 Nov 2020.

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Water Intelligence (LON:WATR)

500p - mkt cap £86m

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 provide its unaudited Trading Update for full year 2020.

Performance has been excellent -

Statutory profits before tax grew very strongly by 78% to $4.2 million, which exceeded market expectations.

Last year, adjusted profits were $1.0m higher than statutory profits. So there’s a query as to why the trading update today mentions statutory profit, not the more normal adjusted profit? Ah here we are, adjusted profit is mentioned further down -

Water Intelligence profits before tax adjusted for non-core costs*, non-cash amortisation expense and share-based payments grew 49% to $5.1 million (2019: $3.4 million)
* Non-core costs include one-time items such as legal expenses on transactions

Revenue for 2020 up a healthy 17% over 2019, to $37.9m (2019: $32.4m). Remember that this understates the level of end customer activity, because some of WATR’s business is via franchisees. Does the franchise model actually work? I’m not sure about that, because WATR regularly buys back franchises, to operate itself. Suggesting that it’s not easy to make franchises work.

Green Economy Mark - this sounds interesting, it’s not something I’ve heard of before. This is awarded by the London Stock Exchange, for companies which derive at least 50% of their revenues from environmental solutions. More information is here. This makes the shares suitable for ESG investors - an increasingly important part of the market. I’m…

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