REG - Water Intelligence - Interim Results
Yesterday 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250929:nRSc1427Ba&default-theme=true
RNS Number : 1427B Water Intelligence PLC 29 September 2025
Water Intelligence plc (AIM: WATR.L)
Interim Results: Stronger Growth; Competitive Differentiation
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 Interim Results for the period ended 30 June 2025.
Results are in-line with market expectations with continued revenue and EBITDA
growth with momentum for 2H from a strong 2Q. The Group's focus is two-fold.
First, further competitive differentiation and margin improvement driven by
its technology-enabled services platform and second, going to market with its
strategic StreamLabs partnership to deliver accelerated organic revenue
growth.
Financial Highlights
· Revenue increased by 8% to $45 million (1H 2024: $41.5 million)
o Franchise Royalty income decreased by 10% to $3.21 million (1H 2024: $3.55
million) as a result of franchise reacquisitions reducing the pool of royalty
income
o Franchise Related sales decreased 15% to $4.7 million (1H 2024: $5.5
million) as a result of fewer franchisees
o Group Corporate Store sales increased 13% to $37.1 million (1H 2024: $32.4
million)
§ US Corporate sales grew 7% to $30.3 million (1H 2024: $28.3 million)
§ International Corporate sales grew 64% to $6.8 million (1H 2024: $4.1
million)
· PBT Adjusted* increased by 8% to $5.7 million (1H 2024 $5.26 million)
· EBITDA Adjusted** increased by 16% to $9.2 million (1H 2024: $8.0
million)
· Statutory Profit Before Tax decreased by 11% to $4.2 million (1H
2024: $4.7 million) negatively affected by IFRS 3 treatment of profits from
Irish acquisition as remuneration expense due to earn-out structure and no
inclusion of gain from Las Vegas acquisition***
· Statutory EBITDA increased by 4% to $8.2 million (1H 2024: $7.8
million) also negatively affected by IFRS 3 treatment of profits from Irish
acquisition as remuneration expense due to earn-out structure and no inclusion
of gain from Las Vegas acquisition***
· PBT Margin Adjusted* remained the same at 13% (1H 2024: 13%)
· EBITDA Margin Adjusted** increased to 20% (1H 2024: 19%)
· EPS Basic Adjusted* increased by 8% to 22.9 cents (1H 2024: 21.2
cents)
· EPS Fully Diluted Adjusted* increased by 8% to 22.4 cents (1H 2024:
20.7 cents)
· Cash and equivalents at 30 June of $8.42 million
o Net Cash of ($14.1) million (cash minus bank borrowings)
o Net Debt (including both Bank Debt and Deferred Acquisition Payments) to
EBITDA Adjusted** ratio: 1.24
*PBT Adjusted (adjusted for amortisation, share based payments and non-core
costs/gains including IFRS treatment of earn-out gains)
**EBITDA Adjusted (adjusted for share-based payments and non-core costs/gains
including IFRS treatment of earn-out gains)
*** See 2024 Accounts, Strategic Report, Table (vii) for further explanation;
Irish acquisition occurred in 2H 2024 so 1H 2024 Interims did not have
conforming treatment of Las Vegas gain. Today's report makes all adjustments
for comparisons.
Corporate Development / Capital Allocation
· Strategic partnership with StreamLabs. Inc., a Chubb company for
"white label" resale of high quality water monitoring products by the Group's
core American Leak Detection subsidiary ("ALD"). ALD is now able to provide
its customers a full suite of products and services and a subscription model.
· Repurchase of Group shares: 60,000
Subsequent to Period
· Repurchase of Group shares: 88,000 for Total Year to Date of 148,000
· Reacquisition of West Georgia franchise to create regional corporate
hub after integration with prior franchise reacquisitions in area
Dr. Patrick DeSouza, Executive Chairman of Water Intelligence, commented:
"We are enthusiastically executing our 2025-26 plan to drive accelerated
organic growth and to realize gains from investments previously made, such as
our Salesforce operating platform. We have momentum from a strong 2Q. Over
the next couple of quarters, we will be publishing new KPIs reflecting such
gains.
Our Technology Enabled Services model positions us well. Preventive
maintenance solutions for aging water infrastructure, as opposed to
restoration after an unattended to water leak, is increasingly sought after
by the residential, commercial and municipal customers as the price of water
continues to rise. Our StreamLabs partnership executed during 1H enables us
to provide end-to-end products and services from monitoring to leak detection
and repair to aftercare and to help our customers via a subscription model to
get ahead of any potential problem.
We are now the only nation-wide company in the US in a fragmented market for
service providers that can provide the end-to-end set of preventive
maintenance solutions directly. Moreover, with our latest proprietary leak
detection equipment to be unveiled at our forthcoming annual ALD Convention
22-25(th) of October, we will be unmatched and this positions us well for a
strong 2026.
While building out our multinational platform and continuing to meet
expectations in terms of profitability, we have preserved a strong balance
sheet and credit capacity. As a result, we have the resources both to be
opportunistic through acquisitions but also to provide some liquidity for
shareholders through share repurchases. We are confident in our ability to
deliver results in the near-term."
The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part
of UK law by virtue of the European Union (Withdrawal) Act 2018. The
information is disclosed in accordance with the Company's obligations under
Article 17 of the UK MAR. Upon the publication of this announcement, this
inside information is now considered to be in the public domain.
Enquiries:
Water Intelligence plc
Laura Bass, Director, Strategic Finance
Tel: Tel: +1 203
584-8240
Grant Thornton UK LLP - Nominated
Adviser
Tel: +44 (0) 20 7383 5100
Philip Secrett
Harrison Clarke
Ciara Donnelly
Canaccord Genuity Limited - Joint Broker
Tel: + 44 (0)207 523 8000
Simon Bridges
Harry Gooden
Elizabeth Halley-Stott
Dowgate Capital Ltd - Joint Broker
Tel: +44
(0)20 3903 7715
Chairman's Statement
During 1H, we began to execute against our Next 50 Growth Plan that we
launched in October 2024 at the annual Conference for our core business -
American Leak Detection (ALD). As discussed below, we have started well in
delivering and have momentum for 2H based on a strong 2Q. The Group's vision
from its beginnings on AIM has always been to transform ALD's unique operating
footprint that provides technology-driven, water leak detection and repair
services to customers all across the United States into a scalable
multinational "One Stop Shop." We have a positive indicator for our
scalability as EBITDA Adjusted margins have moved to 20%; moreover, we have
room for further improvements from our fast growing Water Intelligence
International business (+64% 1H 2025 vs. 1H 2024) as we extend the platform
globally to handle all water infrastructure needs of residential, commercial
and municipal customers in a seamless way.
Starting with ALD's 1H performance, we invested in the final piece of the
platform vision during 1H with our StreamLabs partnership to introduce
wireless monitoring capabilities. We have tested the new offering during 1H in
certain pilot cities with positive customer reaction. In addition,
pleasingly we have also observed different indicators that prior investments
in the platform are delivering efficiencies and scale. Now, as we approach
our 2025 ALD Conference in mid-October, we will be updating key performance
indicators (KPIs) reflecting our progress for a new round of accelerated
growth built upon today's base of approximately $175 million annual network
sales.
Our new KPIs will focus on three key concepts - Preventive Maintenance,
Technology Enabled Solutions Platform and the Dallas Operating Template.
All three reinforce our core technology-driven, minimally-invasive, leak
detection value proposition and create a coherent economic model that is
scalable. Importantly, we believe we are the only nationwide provider in the
US that can bring such a comprehensive technology profile to bear on leak
detection problems in water infrastructure. As outlined below, our new KPIs
are geared to show the yield from our investments.
First, as a matter of competitive strategy, market demand for end-to-end
Preventive Maintenance solutions for water infrastructure - whether
residential, commercial or municipal - is rapidly growing. Customers -
whether homeowners, property management or insurance companies - are
recognizing the need to be proactive rather than wait for serious losses and
greater damages. The current revolution in data science enables better
capture and quantification of water data to show the return on investment
for preventive maintenance. Some of the Group's collection of proprietary
technologies, especially LeakVue 2, already leverage such data about water
flow to pinpoint leaks. As a result, our combination of proprietary tools
and wireless products, an installed base of household customers across the US
and a national services footprint mapped to a national insurance channel
structure enable both the collection of first party data and its exploitation
for winning competitive differentiation.
Over the last six months, we have built out our StreamLabs partnership to
create further competitive advantage for such a new world of preventive
maintenance. StreamLabs, a company owned by Chubb insurance, has what we
have evaluated to be the highest quality water monitoring product that can
provide wireless data alerts of a water leak and an ability to shut-off water
flow. We are pleased that ALD is able to "white label" the StreamLabs
products to our customers and to own dashboards so that we can be a first
responder for our customers and seamlessly leverage our proprietary leak
detection technology and highly-trained professionals to pin-point leaks,
remediate them in minimally-invasive fashion and provide aftercare based on
data. During 1H we have trained our technicians in StreamLabs products,
set-up proprietary workflow routines in our Salesforce operating system and
sold StreamLabs units in pilot cities. Customer feedback has been
outstanding. Coincident with our ALD Convention in October we will be ramping
up sales and marketing efforts and developing revenue growth KPIs
supplementary to our existing offerings. Moreover, the reliability of the
StreamLabs product reinforces ALD's high quality brand and reduces liability
risk for false readings unlike other products.
Second, over the last several years we have invested in building out a
Technology Enabled Solutions (TES) business model so that we could scale
efficiently. Our Salesforce operating system and various applications from
web forms to SEEEN video moments gather and store data securely in the
Salesforce cloud to improve leak detection services, the training of
technicians and even the care of customers. We have integrated such data
flows from our national insurance channels with our Salesforce system and
automatically produce service level customer records. We are now tying
together StreamLabs monitoring technology to service level agreements from
insurance channels such as Chubb. In terms of KPIs, now that we have various
data flows integrated, we can reduce unnecessary software licenses linked to
each of our 150 locations as well as certain administrative headcount since
job information is routed directly to technicians and service level reports
generated more efficiently. Such efficiencies will underpin further
subscription offerings. EBITDA Adjusted margins have improved during 1H and
we will be developing KPIs on operating efficiencies and margin expansion.
Third, with respect to the Dallas Template, as previously discussed, we
reacquired during Q4 2024 ALD's highly successful Dallas franchise led by Will
Knell, then appointed Will as CEO of ALD and are now cloning the Dallas unit's
operating model - one that has generated significant sales growth and 30%
margins - across the other forty-five corporate locations. During 1H, we
started making various changes including the introduction of performance-based
incentives used in Dallas. Such performance-based incentives include
assisting with the sale of StreamLabs products. We will be developing KPIs
based on corporate store operating efficiencies and additional revenue yield
from technician-led sales. We expect to see corporate store operating
margins increase from 2024's yield of 18% to a target level of 22% during 2026
which, if we are successful, should unlock at least $2million of organic
profits. Implementing the Dallas template will also make future franchise
reacquisitions more efficient from the start.
1H Financial Results. As described above, 1H was marked by significant
investment and management attention to completing a TES platform. In
parallel, the business continued to grow both top-line and bottom-line with
added momentum for 2H with a strong 2Q. Group revenues grew 8% to $45
million (1H 2024: $41.5 million). Group corporate locations grew 13% to
$37.1 million (1H 2024: $32.4 million). Among the corporate locations, US
corporate locations grew 7% to $30.3 million (1H 2024: $28.3 million).
International corporate locations led by Ireland (acquisition) and Australia
(organic) grew 64% to $6.8 million (1H 2024: $4.1 million). Franchise
royalties declined 10% to $3.21 million (1H 2024: $3.55 million) with such
decline largely as a result of prior franchise acquisitions which reduced the
pool of franchise royalties. Network sales for 1H (both corporate sales and
gross sales from franchises from which royalty income is derived) was flat at
approximately $90 million.
While we report both statutory and adjusted EBITDA and profit before tax, as a
result of IFRS 3 treatment of 2H 2024's acquisition in Ireland and conforming
treatment of a Las Vegas acquisition, we believe the adjusted numbers are more
relevant for comparisons. With respect to Ireland, because of the earn-out
structure of the transaction - designed to reduce transition risk - profits
are treated as a remuneration expense. In Las Vegas, because the former
franchise owner did not meet an earnings target as part of his deferred
payments, again to minimize risk, the Group's gain from non-payment of this
liability was excluded from income for year-over-year comparisons.
Hence Profit before Tax Adjusted for amortization, share-based payments and
non-core costs/gains increased by 8% to $5.7 million (1H 2024 $5.26 million).
EBITDA Adjusted for share-based payments and non-core costs/gains increased
16% to $9.2 million (1H 2024: $8.0 million). Meanwhile, statutory Profit
before Tax decreased by 11% to $4.2 million (1H 2024: $4.7 million).
Statutory EBITDA increased by 4% to $8.2 million (1H 2024: $7.8 million).
EBITDA Adjusted margins increased 20% (1H 2024: 19%); Profit before taxes
adjusted margins remained the same as 1H 2024 at 13%.
Our balance sheet remained strong and under-levered. The Group has
sufficient resources to execute its Next 50 Plan. Cash at 30 June was $8.42
million. The ratio of Net Debt (including both bank debt and deferred
payments from prior acquisitions) to EBITDA Adjusted was 1.24.
Strategic Direction.
The Group's focus going forward is on
monetizing its investments that underpin its competitive strategy of
preventive maintenance. Because of our TES platform, we are uniquely
positioned to accelerate revenue growth by selling a suite of products,
services and analytic data that provide end-to-end solutions to reduce water
loss from leakage because of failing infrastructure whether residential,
commercial or municipal. Moreover, given the scalability of our "One Stop
Shop" we can execute such sales more efficiently leading to improved operating
margins. In a fragmented market for solutions providers, our platform
approach is valued by customers who want one service provider to seamlessly
integrate all needs from wireless monitoring to pinpoint leak detection to
minimally invasive repair to continued aftercare..
Our capital allocation policy remains the
same: a priority of feeding organic growth but with an eye toward
opportunistic acquisitions (especially franchisees and plumbing) that
reinforce our growing operating footprint. To be sure, we recognize that we
are undervalued and have allocated capital to enable liquidity through share
repurchases. Year-to-date, we have reacquired 148,000 shares. We have a
strong balance sheet and have the available resources to support our Next 50
Plan.
We remain confident about our growth prospects
over the coming quarters as we capture data for KPIs informing our Next 50
Plan and, as always, appreciate the support of our shareholders.
Interim Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2024
Six months Six months Year ended
ended ended 31
30 June 30 June December
2025 2024 2024
Notes $ $ $
Unaudited Unaudited Audited
Revenue 4 45,025,419 41,525,858 83,291,649
Cost of sales (4,346,322) (4,992,886) (9,795,325)
Gross profit 40,679,097 36,532,972 73,496,324
Administrative expenses
- Other income 96,780 737,289 974,355
- Gain on bargain purchase - - 356,464
- Share-based payments (174,915) (151,138) (379,343)
- Amortisation of intangibles (455,240) (427,026) (854,878)
- Other administrative costs (34,974,440) (31,442,024) (65,941,266)
Total administrative expenses (35,507,815) (31,282,899) (65,844,668)
Operating profit 5,171,282 5,250,073 7,651,656
Finance income 227,773 186,835 395,729
Finance expense (1,222,090) (731,327) (1,690,900)
Profit before tax 4 4,176,965 4,705,581 6,356,485
Taxation expense (1,075,568) (1,412,117) (1,572,490)
Profit for the period 3,101,397 3,293,464 4,783,995
Attributable to:
Equity holders of the parent 3,038,919 3,300,966 4,680,130
Non-controlling interests 62,478 (7,502) 103,865
3,101,397 3,293,464 4,783,995
Other comprehensive income
Exchange differences arising on translation of foreign operations 292,711 (103,159)
(173,851)
Cash flow hedge movement not subsequently reclassified to the P&L (485,817) 11,765
(128,528)
Fair value adjustment on listed equity investment (net of deferred tax) (32,186) (173,597) 215,558
Total comprehensive income for the period 4,697,174
2,876,105 3,028,473
Earnings per share Cents Cents Cents
Basic 5 17.5 19.0 26.9
Diluted 5 17.1 18.5 26.3
Consolidated Statement of Financial Position as at 30 June 2025
At At At
30 June 30 June 31 December
2025 2024 2024
Notes $ $ $
Unaudited Unaudited Audited
ASSETS
Non-current assets
Goodwill 68,928,861 52,473,874 64,996,704
Listed equity investment 255,558 237,304 292,067
Other intangible assets 13,916,811 8,959,620 11,632,065
Interest rate swap 6,007 288,030 491,824
Property, plant and equipment 15,121,544 12,883,938 12,991,015
Trade and other receivables 288,694 297,707 250,500
98,517,475 75,140,473 90,654,175
Current assets
Inventories 882,747 870,648 930,439
Trade and other receivables 13,182,487 11,737,242 10,934,817
Investments 4,207,544 4,446,570 6,683,089
Cash and cash equivalents 4,211,873 6,665,581 5,452,479
22,484,651 23,720,041 24,000,824
TOTAL ASSETS 4 121,002,127 98,860,514 114,654,999
EQUITY AND LIABILITIES
Equity attributable to holders of the parent
Share capital 6 143,192 143,192 143,192
Share premium 6 35,417,072 35,226,469 35,417,072
Shares held in treasury 6 (1,149,538) (752,140) (883,549)
Merger reserve 1,001,150 1,001,150 1,001,150
Share based payment reserve 2,997,281 2,405,485 2,822,366
Foreign exchange reserve (1,186,178) (1,408,196) (1,478,888)
Reverse acquisition reserve 6 (27,758,088) (27,758,088) (27,758,088)
Equity investment reserve (826,855) (839,737) (794,668)
Cash flow hedge reserve 6,007 288,030 491,823
Retained profit 59,057,225 54,796,780 56,018,304
67,701,266 63,102,945 64,978,714
Equity attributable to Non-Controlling interest
Non-controlling interest 359,213 343,642 455,007
Non-current liabilities
Borrowings and lease liabilities 27,981,083 13,681,567 26,361,482
Deferred consideration 3,956,104 501,720 5,332,269
Deferred tax liability 4,246,026 3,988,963 3,212,788
36,183,213 18,172,250 34,906,539
Current liabilities
Trade and other payables 7,228,104 5,685,245 6,749,312
Borrowings and lease liabilities 3,964,092 7,078,714 3,787,362
Deferred consideration 5,566,238 4,477,718 3,778,065
16,758,435 17,241,677 14,314,739
TOTAL EQUITY AND LIABILITIES 121,002,127 98,860,514 114,654,999
Interim Consolidated Statement of Changes in Equity
For the six months ended 30 June 2025
Share Share Shares held Reverse Acquisition Reserve Merger Share based payment reserve Foreign exchange reserve Equity investment reserve Cash Flow Retained Total Non-controlling interest Total
Capital Premium in treasury Reserve Hedge Reserve Profit Equity
$ $ $ $ $ $ $ $ $ $ $ $ $
As at 1 January 2024 143,192 35,417,072 (1,139,404) (27,758,088) 1,001,150 2,254,347 (1,305,037) (666,140) 276,265 51,495,814 59,719,171 610,375 60,329,546
Share based payment expense - - - - - 151,138 - - - - 151,138 - 151,138
Share buyback - - (39,114) - - - - - - - (39,114) - (39,114)
Issue of Treasury Shares - (190,603) 426,377 - - - - - - - 235,774 - 235,744
Distribution to non-controlling interest - - - - - - - - - - - (259,231) (259,231)
Profit for the period - - - - - - - - - 3,300,966 3,300,966 (7,502) 3,293,464
Other comprehensive income - - - - - - (103,159) (173,597) 11,765 - (264,991) - (264,991)
As at 30 June 2024 (unaudited) 143,192 35,226,469 (752,140) (27,758,088) 1,001,150 2,405,485 (1,408,196) (839,737) 288,030 54,796,780 63,102,945 343,642 63,446,587
Share-based payment expense - - - - - 228,205 - - - - 228,205 - 228,205
Options granted as part of the purchase price - - - - - 188,676 - - - - 188,676 - 188,676
Share buyback - - (131,409) - - - - - - - (131,409) - (131,409)
Issue of Treasury Shares - 190,603 - - - - - - - (157,640) 32,963 - 32,963
Profit for the period - - - - - - - - 1,379,164 1,379,164 111,367 1,490,531
Other comprehensive income - - - - - - (70,692) 45,069 203,793 - 178,170 - 178,170
As at 31 December 2024 (audited) 143,192 35,417,072 (883,549) (27,758,088) 1,001,150 2,822,366 (1,478,888) (794,668) 491,823 56,018,304 64,978,714 455,007 65,433,721
Share based payment expense - - - - - 174,915 - - - - 174,915 - 174,915
Share buyback - - (265,989) - - - - - - - (265,989) - (265,989)
Distribution to non-controlling interest - - - - - - - - - - - (158,272) (158,272)
Profit for the period - - - - - - - - - 3,038,919 2,797,231 62,478 3,101,297
Other comprehensive income - - - - - - 292,711 (32,186) (485,817) - (225,292) - (225,292)
As at 30 June 2025 (unaudited) 143,192 35,417,072 (1,149,538) (27,758,088) 1,001,150 2,997,281 (1,186,179) (826,855) 6,007 59,057,223 67,701,262 359,216 67,060,478
Interim Consolidated Statement of Cash Flows
For the six months ended 30 June 2025
Six months Six months Year ended
ended ended 31 December 2024
30 June 2025 30 June 2024
$ $ $
Unaudited Unaudited Audited
Cash flows from operating activities
Profit before tax 4,176,965 4,705,581 6,356,484
Adjustments for non-cash/non-operating items:
Depreciation of plant and equipment 2,547,496 2,164,749 4,568,406
Amortisation of intangible assets 455,240 427,026 854,878
Share based payments 174,915 151,138 379,343
Gain from reversal of contingent consideration - - (700,000)
Gain on bargain purchase - - (356,464)
Non cash employment costs - - 268,737
Interest paid 1,222,090 731,327 1,690,900
Interest received (227,773) (186,835) (395,729)
Operating cash flows before movements in working capital 7,931,639 7,992,987 12,666,555
(Increase)/Decrease in inventories 47,693 (147,333) (207,124)
(Increase)/Decrease in trade and other receivables (2,275,154) (763,706) 1,634,614
Decrease in trade and other payables 625,580 (811,844) 127,689
Cash generated by operations 6,747,052 6,270,103 14,221,734
Income taxes (38,008) (5,430) (1,739,725)
Net cash generated from operating activities 6,709,044 6,264,674 12,482,009
Cash flows from investing activities
Purchase of plant and equipment (608,449) (904,971) (2,108,307)
Disposal of plant and equipment 66,845 - 200,554
Purchase of intangibles (2,682,026) (1,491,522) (3,813,954)
Acquisition of subsidiaries - - (571,246)
Reacquisition of Franchises (2,900,000) (2,000,000) (6,511,890)
Sale of investments 2,475,545 2,428,680 192,161
Interest received 227,773 186,835 395,729
Net cash used in investing activities (3,420,312) (1,780,978) (12,216,953)
Cash flows from financing activities
Share buy-back (265,990) (39,114) (170,522)
Distribution to non-controlling interest (158,272) (259,232) (185,733)
Interest paid (1,087,157) (610,059) (1,635,600)
Proceeds from borrowings - 2,000,000 26,628,000
Repayment of borrowings (1,074,804) (2,759,300) (18,410,090)
Repayment of notes (1,009,324) (3,726,079) (8,098,116)
Repayment of lease liabilities (933,790) (1,306,955) (1,823,143)
Net cash used in financing activities (4,529,337) (6,700,739) (3,695,204)
Net decrease in cash and cash equivalents (3,430,148)
(1,240,605) (2,217,043)
Cash and cash equivalents at the beginning of period 8,882,627
5,452,479 8,882,627
Cash and cash equivalents at end of period 4,211,875 6,665,581 5,452,479
Notes to the Interim Consolidated Financial Information
for the six months ended 30 June 2025
1 General information
The Group is a leading provider of minimally-invasive leak detection and
remediation services and products for water and wastewater infrastructure. The
Group's strategy is to be a provider of "end-to-end" solutions - a "one-stop
shop" for residential, commercial and municipal customers.
The Company is a public limited company domiciled in the United Kingdom and
incorporated under registered number 03923150 in England and Wales. The
Company's registered office is 27-28 Eastcastle Street, London, W1W 8DH.
2 Significant accounting policies
Basis of preparation and changes to the Group's accounting policies
The accounting policies adopted in the preparation of the interim consolidated
financial information are consistent with those of the preparation of the
Group's annual consolidated financial statements for the year ended 31
December 2023.
This interim consolidated financial information for the six months ended 30
June 2025 has been prepared in accordance with IAS 34, "Interim financial
reporting". This interim consolidated financial information is not the Group's
statutory financial statements and should be read in conjunction with the
annual financial statements for the year ended 31 December 2024, which have
been prepared in accordance with International Financial Reporting Standards
(IFRS) and have been delivered to the Registrar of Companies. The auditors
have reported on those accounts; their report was unqualified, did not include
references to any matters to which the auditors drew attention by way of
emphasis of matter without qualifying their report and did not contain
statements under section 498(2) or (3) of the Companies Act 2006.
The interim consolidated financial information for the six months ended 30
June 2025 is unaudited. In the opinion of the Directors, the interim
consolidated financial information presents fairly the financial position, and
results from operations and cash flows for the period. Comparative numbers for
the six months ended 30 June 2024 are unaudited.
This interim consolidated financial information is presented in US Dollars
($), rounded to the nearest dollar.
Foreign currencies
(i) Functional and presentational currency
Items included in this interim consolidated financial information are measured
using the currency of the primary economic environment in which each entity
operates ("the functional currency") which is considered by the Directors to
be the Pounds Sterling (£) for the Parent Company and US Dollars ($) for
American Leak Detection Holding Corp. This interim consolidated financial
information has been presented in US Dollars which represents the dominant
economic environment in which the Group operates and is considered to be the
functional currency of the Group. The effective exchange rate at 30 June 2025
was £1 = US$ 1.3724 (30 June 2024: £1 = US$ 1.2647).
Critical accounting estimates and judgments
The preparation of interim consolidated financial information requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets and
liabilities and the reported amounts of income and expenses during the
reporting period. Although these estimates are based on management's best
knowledge of current events and actions, the resulting accounting estimates
will, by definition, seldom equal the related actual results.
In preparing this interim consolidated financial information, the significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those that applied
to the consolidated financial statements for the year ended 31 December 2024.
3 Significant events and transactions
As detailed in Footnote 7 the Group launched its StreamLabs Partnership;
reacquired its West Georgia franchise and has repurchased 148,000 shares year
to date.
4 Segmental information
In the opinion of the Directors, the operations of the Group currently
comprise four operating segments: (i) franchise royalty income, (ii)
franchise-related activities including sale of franchise territory,
business-to-business sales and product and equipment sales, (iii) US
corporate-operated locations led by the Group's U.S.-based American Leak
Detection subsidiary and (iv) international corporate locations led by the
Group's UK-based Water Intelligence International subsidiary.
The Group mainly operates in the US, with operations in the UK, Canada and
Australia. In the six months to 30 June 2025, 84.8% (1H 2024: 87.6%) of its
revenue came from the US-based operations; the remaining 15.2% (1H 2024:
12.4%) of its revenue came from its international corporate operated
locations.
No single customer accounts for more than 10% of the Group's total external
revenue.
The Group adopted IFRS 8 Operating Segments with effect from 1 July 2008. IFRS
8 requires operating segments to be identified on the basis of internal
reports about components of the Group.
Information reported to the Group's Chief Operating Decision Maker (being the
Executive Chairman), for the purpose of resource allocation and assessment of
division performance is separated into four income generating segments that
serve as key performance indicators (KPI's):
- Franchise royalty income;
- Franchise-related activities (including sale of franchise
territory, product and equipment sales and Business-to-Business sales);
- US corporate operated locations; and
- International corporate operated locations.
Items that do not fall into the four segments have been categorised as
unallocated head office costs and non-core costs.
The following is an analysis of the Group's revenues, results from operations
and assets:
Revenue Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December
2024
$ $ $
Unaudited Unaudited Audited
Franchise royalty income 3,212,811 3,554,456 6,503,134
Franchise related activities 6,479,930 5,534,301 10,665,512
US corporate operated locations 30,337,393 28,298,872 55,854,674
International corporate operated locations 6,795,286 4,138,228 10,268,329
Total 45,025,420 41,525,858 83,291,649
Profit before tax Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December
2024
$ $ $
Unaudited Unaudited Audited
Franchise royalty income 1,124,483 1,138,459 2,296,003
Franchise related activities 333,608 541,415 870,187
US corporate operated locations 5,378,814 5,134,673 10,005,806
International corporate operated locations (167,683) (161,386) (601,899)
Unallocated head office costs (1,867,259) (1,972,580) (5,684,612)
Net Non-core costs/gains (625,000) 25,000 (529,000)
Total 4,176,963 4,705,581 6,356,485
Assets Six months Six months Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
$ $ $
Unaudited Unaudited Audited
Franchise royalty income 25,435,882 21,827,215 26,022,309
Franchise related activities 3,429,417 3,495,142 3,142,406
US corporate operated locations 74,788,134 57,389,619 68,349,942
International corporate operated locations 17,348,694 16,148,538 17,140,342
Total 121,002,127 97,860,514 114,654,999
Geographic Information
The Group has two wholly-owned subsidiaries - American Leak Detection (ALD)
and Water Intelligence International (WII). Operating activities are
captured as both franchise-executed operations and corporate-executed
operations. ALD has both US franchises and corporate-operated locations.
It also has international franchises, principally located in Australia and
Canada. Operations focus on residential and commercial water leak detection
and remediation with some municipal activities. By comparison, WII has only
corporate operations located outside the United States. These WII
international operations are principally municipal activities with some
residential leak detection and remediation. As noted herein, the Group's
vision is to become a multinational growth company and a "One Stop Shop" for
residential, commercial and municipal solutions to water and wastewater
infrastructure problems.
Total Revenue
Six months ended 30 June 2025 Year ended 31 December 2024
Unaudited Audited
US International Total US International Total
$ $ $ $ $ $
Franchise royalty income 3,179,120 33,692 3,212,811 6,407,529 95,605 6,503,134
Franchise related activities 4,679,930 - 4,679,930 10,665,512 - 10,665,512
US corporate operated locations 30,337,393 - 30,337,393 55,854,674 - 55,854,674
International corporate operated locations - 6,795,286 6,795,286 - 10,268,329 10,268,329
Total 38,196,442 6,828,978 45,025,420 72,927,715 10,363,934 83,291,649
5 Earnings per share
The earnings per share has been calculated using the profit for the period and
the weighted average number of Ordinary shares outstanding during the period,
as follows:
Six months ended Six months ended Year ended
31 December 2024
30 June 2025 30 June 2024
Unaudited Unaudited Audited
Earnings attributable to shareholders of the Company ($)
3,038,919 3,300,966 4,680,130
Weighted average number of ordinary shares 17,333,707 17,402,288 17,391,205
Diluted weighted average number of ordinary shares 17,756,887 17,823,584 17,825,495
Earnings per share (cents) 17.5 19.0 26.9
Diluted earnings per share (cents) 17.1 18.5 26.3
Earnings per share are computed based on Ordinary shares. There is a class
of B Ordinary Shares discussed in Footnote 6 that are not admitted to trading.
6 Share capital
The issued share capital at the end of the period was as follows:
Group & Company
Ordinary Shares held in treasury Number
Shares of 1p each
Number Total Number
At 30 June 2025 17,311,538 176,150 17,487,688
At 30 June 2024 17,398,688 89,000 17,487,688
At 31 December 2024 17,371,538 116,150 17,487,688
The net number of options including the new grants and leavers from the
Company at 30 June 2024 is 2,773,000. On 29 September 2025 the Company
expects to issue options for 275,000 shares to satisfy 2024 Board
Compensation. The options have an exercise price of 345p which was the share
price at end of the 1Q after 2024 books were closed. The compensation
expense is already accrued in the 2024 Accounts.
Group & Company Share Capital Share Premium Shares In Treasury
$ $ $
At 30 June 2025 143,192 35,417,071 (1,149,538)
At 30 June 2024 143,192 35,226,469 (752,140)
At 31 December 2024 143,192 35,417,071 (883,548)
Reverse acquisition reserve
The reverse acquisition reserve was created in accordance with IFRS3 Business
Combinations and relates to the reverse acquisition of Qonnectis Plc by ALDHC
in July 2010. Although these Consolidated Financial Statements have been
issued in the name of the legal parent, the Company it represents in substance
is a continuation of the financial information of the legal subsidiary ALDHC.
A reverse acquisition reserve was created in 2010 to enable the presentation
of a consolidated statement of financial position which combines the equity
structure of the legal parent with the reserves of the legal subsidiary.
Qonnectis Plc was renamed Water Intelligence Plc on completion of the reverse
acquisition on 29 July 2010.
7 Transactions in the Period and Subsequent Events
On 26 February, the Group announced a strategic partnership with StreamLabs,
Inc., a Chubb company. StreamLabs is a leading provider of high quality
wireless water monitoring devices that can provide alerts to the presence of
water leaks and also a capability of remotely shutting-off water flow to
pipes. Under the preferred partnership agreement, ALD has preferred pricing
for reselling StreamLabs products, the ability to "White Label" StreamLabs
products under the ALD brand and the rights to data and dashboards to provide
subscription-based aftercare to customers.
On 6 August, the Group announced the reacquisition of its West Georgia
franchise for an initial payment of $350,000 in cash and additional payment
based on an earnout formula with a maximum aggregate price of four times
profits. The transaction enables the Group to create a regional hub in the
Southeast US aggregating existing corporate locations in Georgia and South
Carolina.
Year to Date (Issuance of this Interim Report) the Group has repurchased
148,000 shares as part of its capital allocation policy.
8 Publication of announcement and the Interim Results
A copy of this announcement will be available at the Company's registered
office (27-28 Eastcastle Street, London, W1W 8DH) from the date of this
announcement and on its website - www.waterintelligence.co.uk
(http://www.waterintelligence.co.uk) . This announcement is not being sent to
shareholders.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR SEWEEAEISEEURecent news on Water Intelligence
See all newsREG - Water Intelligence - Transaction in Own Shares & Total Voting Rights
AnnouncementREG - Water Intelligence - Interim Results
AnnouncementREG - Water Intelligence - Total Voting Rights
AnnouncementREG - Water Intelligence - Transaction in Own Shares & Total Voting Rights
AnnouncementREG - Water Intelligence - Transaction in Own Shares & Total Voting Rights
Announcement