REG - Water Intelligence - Franchise Reacquisition, Addition to MSCI Indices

Water IntelligenceAnnouncement

14/12/2020 07:00

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RNS Number : 4687I  Water Intelligence PLC  14 December 2020

Water Intelligence plc

Reacquisition of Baton Rouge and New Orleans Franchise

Water Intelligence Added to the MSCI World, European and UK Micro Cap Indices

Water Intelligence plc (AIM: WATR.L) ("Water Intelligence" or "Company"), a
leading multinational provider of precision, minimally-invasive leak detection
and remediation solutions for both potable and non-potable water is pleased to
announce it has entered into an agreement to reacquire its franchise operation
that encompasses the cities of Baton Rouge and New Orleans, Louisiana
("Louisiana") within the Group's American Leak Detection subsidiary ("ALD").
 Baton Rouge is the state's capital and New Orleans is the state's most
populous city.  Closing is scheduled for prior to year-end.

Strategically, the Louisiana reacquisition will enable ALD to form a strategic
operational center in the southern part of the United States from which to
support the growth of franchise and corporate locations.

Financially, for full-year 2019 the Louisiana franchise generated
approximately $1.1 million in sales and $0.3 million in pre-tax profits.  It
is on track to exceed those results for both sales and profits for 2020
despite Covid-19 restrictions. The purchase price for the reacquisition is
$1.77 million (which includes all assets to conduct operations (trucks,
equipment)) to be paid over four years. The Louisiana franchisee leadership
team will remain in place to run the operation for ALD as members of the
corporate team.

Today's reacquisition is another milestone to accelerate the growth of the
Company in 2021 and beyond.  4Q, much like 3Q, has been marked by strong
results.  Water Intelligence launched this quarter with a fundraising to fuel
accelerated growth.  Today's reacquisition puts some of this capital to work
in accretive fashion.  It also follows two insurance channel wins during
October that will feed organic growth for the whole ALD system.

Despite the disruptions of Covid-19, the Group continues to grow strongly at
both top-line and bottom-lines. ALD is an "essential service provider" and
provides consumers with solutions to water infrastructure issues while they
"shelter in place."

The Company also announces that it has been added to the MSCI World Micro Cap
Index and other associated indices, such as the MSCI Europe Micro Cap and the
MSCI UK Micro Cap.

Executive Chairman, Dr. Patrick DeSouza commented: "We are planning on
finishing 2020 in very strong fashion.  Each quarter this year, we have
challenged ourselves to exceed the previous quarter in terms of performance
despite the challenges presented by Covid-19.  We provide valuable solutions
for water and wastewater infrastructure and seek to help lead efforts for the
Green Economy.

We are also pleased that building on the Green Economy Mark which we received
from the London Stock Exchange in 3Q, we have now been added to the MSCI World
Micro Cap Index and other MSCI indices. We look forward to the process of
building a valuable company."

 

The information communicated in this announcement is inside information for
the purposes of Article 7 of Regulation 596/2014

Enquiries:

 Water Intelligence plc
 Patrick DeSouza, Executive Chairman            Tel: +1 203 654 5426
 Adrian Hargrave, VP Corporate Development      +44 (0)7775 701 838

 WH Ireland Limited - NOMAD & Broker            Tel: +44 (0)207 220 1666
 Adrian Hadden
 James Sinclair-Ford
 Matthew Chan                                                      Tel:  +44 (0)7920 599 793

 Dowgate Capital Ltd - Broker & Advisor

Stephen Norcross

 

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