Water Intelligence - Interim Results
Water Intelligence plc (AIM: WATR.L)
Interim Results and Launch of Preventive Maintenance Business
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 2026. And the launch of its preventative maintenance business adding additional sources of growth.
1H Results delivered continued revenue and EBITDA adjusted growth with momentum for 2H based on paid pilots for its preventive maintenance growth plan. The Group's focus is two-fold. First, further competitive differentiation driven by its technology-enabled services platform and second, going to market with "turn-key" preventive maintenance solutions leveraging its strategic water monitoring product partnerships and integrated services.
Financial Highlights
· Revenue increased by 7% to $48.2 million (1H 2025: $45.0 million)
o Franchise Royalty income decreased by 2% to $3.14 million (1H 2025: $3.21 million) as a result of franchise reacquisitions reducing the pool of royalty income
o Franchise Related sales increased 15% to $5.4 million (1H 2025: $4.7 million)
o Group Corporate Store sales increased 7% to $39.7 million (1H 2025: $37.1 million)
§ US Corporate sales decreased by 1% to $30.2 million (1H 2025: $30.3 million)
§ International Corporate sales grew 40% to $9.5 million (1H 2025: $6.8 million)
· PBT Adjusted* increased by 4% to $5.9 million (1H 2025 $5.7 million)
· EBITDA Adjusted** increased by 6% to $9.8 million (1H 2025: $9.3 million)
· Statutory Profit Before Tax decreased by 22% to $3.3 million (1H 2025: $4.2 million)
· Statutory EBITDA decreased by 9% to $7.5 million (1H 2025: $8.2 million)
· PBT Margin Adjusted* decreased to 12% (1H 2025: 13%)
· EBITDA Margin Adjusted** decreased to 20% (1H 2025: 21%)
· EPS Basic Adjusted* increased by 7% to 26.0 cents (1H 2025: 24.3 cents)
· EPS Fully Diluted Adjusted* increased by 8% to 25.5 cents (1H 2025: 23.7 cents)
· Cash and equivalents at 30 June of $4.37 million
o Net Cash of ($21.3) million (cash minus bank borrowings)
o Net Debt (including both Bank Debt and Deferred Acquisition Payments) to EBITDA Adjusted** ratio: 1.29
o $4.2 million of receivables booked during 1H 2026 are expected to be paid during 2H 2026 adding to operating cash flow
*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, restructuring costs associated with our TES platform, legal fees for acquisition related-activities, one-off systems integration and one-off professional fees.)
***Comparative figures for the six months ended 30 June 2025 have been updated to reflect adjustments identified during the audit of the year ended 31 December 2025, and therefore produce rounding differences from those previously reported
Corporate Development / Capital Allocation
During the period, the Group bought back 116,500 shares into treasury, in line with its stated capital allocation policy. As at 30 June 2026, the Group held 670,650 ordinary shares of 1 penny each in treasury.
Dr. Patrick DeSouza, Executive Chairman of Water Intelligence, commented:
"We look forward to attacking the growing market opportunity in front of us. We will continue to execute our core growth plan of providing tech-based, minimally invasive leak detection and repair solutions across the US and internationally and further developing additional B2B channels beyond insurance. Moreover, given our strong balance sheet, we will continue our execution of accretive acquisitions. However, now, given our built-out Technology Enabled Services platform that we have tested with paid pilots with large customers, we are uniquely positioned to provide turn-key preventive maintenance solutions for current and new customers by extending our service workflows seamlessly to include additional sources of growth selling and installing wireless water monitoring devices and using data stored securely in our TES platform to proactively provide the highest level of leak detection and repair aftercare with subscription pricing.
Our integrated platform with a direct, trained workforce and "first responder" levels of service creates the customer satisfaction that clients seek. It differentiates us and with our operating scale enables us to capture more of the multi-billion-dollar market for water and wastewater infrastructure services - residential, commercial, municipal."
Enquiries:
Water Intelligence plc
Michael Moulton, CFO Tel: 203 962 2217
Grant Thornton UK Advisory & Tax LLP - Nominated Adviser Tel:+ 44 (0)207 383 5100
Philip Secrett
Harrison Clarke
Ciara Donnelly
Canaccord Genuity Limited - Broker Tel: + 44 (0)207 523 8000
Simon Bridges
Harry GoodenElizabeth Halley-Stott
Chairman's Statement
In the Chairman's Statement for the 2025 Accounts, we indicated that 2026 promises to be an exciting year for our shareholders and a chance to reap the rewards from our prior technology investments, especially in American Leak Detection (ALD), our core business delivering minimally invasive leak detection and repair services across the US. ALD's primary mission is to disrupt the $13 billion US insurance market for water infrastructure services through the use of technology. We also pointed to the extensibility of our ALD platform internationally, both organic and through acquisition, via our fast-growing Water Intelligence International subsidiary (40% sales growth 1H 2026 versus 1H 2025 led by our Irish acquisition and its subsequent organic growth). Leaky water and wastewater pipes are a global problem that is estimated to reach $200 billion given aging infrastructure.
The Group's competitive strategy is informed by strong market demand globally both for Preventive Maintenance solutions (PM) to water infrastructure problems and for a Technology Enabled Services Platform (TES) to deliver PM products and services in an integrated fashion, efficiently and continuously; a "One Stop Shop" that would transform a low tech, fragmented industry of largely local service plumbers. We outlined a growth strategy and projected a roll-out of a delivery system for PM offerings which would be stress-tested in 1H 2026 and launched in 2H 2026 starting with paid pilots.
We have progressed on schedule. While executing our base leak detection and repair business and achieving consistent growth - 7% revenue growth, 6% EBITDA adjusted growth - during 1H, we also increased spending in anticipation of sales traction in 2H on PM solutions. We trained our leak detection and plumbing specialists in the installation and deployment of new wireless devices and the efficient execution of aftercare offerings via a subscription model based on data and services. We also used customer feedback to design a low cost call center to provide help to clients with respect to water monitoring devices and aftercare.
Based on our paid pilots, we can demonstrate to all current and prospective clients - residential, commercial, municipal - that because of our operating footprint across the US and prior technology investments, we are the only national company that can take care of them end-to-end: (i) professional installation of quality acoustic-monitors for accuracy and reliability; (ii) real-time wireless alerts transmitted to clients with an option for large customers to provide analytic dashboards; (iii) professionals trained to use proprietary acoustic-based technologies to find and fix leaks; (iv) a world-class CRM that could efficiently and securely store data and dispatch service teams as "first responders"; (v) APIs that integrate the CRM with a network of insurance channels across the US; (vi) automated data reports transmitted electronically and (vii) aftercare by professionals to provide maintenance of solutions using integrated dashboards and video-technology.
These PM offerings leverage our well-defined sales channels especially our nationwide insurance channel with 23 of the largest insurance companies in the US. This B2B channel can handle 100,000+ assignments annually with rigorous Service Level Agreements (SLAs). The PM workflows for installing water monitoring products after referrals from insurance companies are very similar to our current workflows from insurance assignments for post-loss leak detection and repair.
Financial Update. As noted above, Group revenue grew by 7% to $48.2 million (1H 2025: $45 million). Broken down further, Group corporate store sales grew by 7% to $39.7 million (1H 2025: $37.1 million). US stores remained flat at $30.2 million (1H 2025: $30.3 million). Non-US stores, as indicated above, grew 40% to $9.5 million (2025 1H: $6.8 million). Franchise royalty income decreased by 2% to $3.1 million (1H 2025: $3.2 million) reflecting a reduced pool of royalty income from franchise acquisitions. Of note, franchise related sales which include the B2B insurance channel and equipment sales such as monitoring devices grew 15% to $5.4 million (1H 2025: $4.7 million). More broadly, the Group's network sales (corporate sales and franchise gross sales from which royalty income is derived) grew by 2.5% to $91.6 million (1H 2025: $89.4 million).
EBITDA Adjusted increased by 6% to $9.8 million (1H 2025: $9.3 million) with margins decreasing slightly to 20% (1H 2025: 21%) reflecting higher materials costs and gasoline prices especially due to the Iranian conflict. Profit before tax adjusted grew by 4% to $5.9 million (1H 2025: $5.7 million) with margins decreasing slightly to 12% (1H 2025: 13%) reflecting higher materials costs and gasoline prices. Statutory EBITDA decreased by 9% to $7.5 million (1H 2025: $8.2 million). Statutory profit before tax decreased by 22% to $3.3 million (1H 2025: $4.2 million) reflecting legal and training expenses for setting up the infrastructure for monitoring services and subscription offerings. On the other hand, paid pilots in Q3, discussed below, began to amortize the start-up costs. Overall, fully diluted EPS adjusted increased by 8% to 25.5 cents (1H 2025: 23.7 cents).
During Q3 we executed paid pilots with strategic customers. We now have both operational data supporting significant return on investment (ROI) for clients on PM solutions and financial results from these pilot programs for our shareholders. Moreover, we have learned lessons from these pilots around which to market our competitive differentiation and refine our PM offerings for greater margins. First, we are "white labeling" our StreamLabs and Bluebot monitoring product offerings. We appreciate that clients value the security and comfort in a "turn-key" solution executed by the ALD brand. We have chosen wisely: each monitoring product has market leading features. For example, with respect to our StreamLabs product, insurance customers value its wireless shut-off technology. StreamLab's technology after testing and deployment is recognized by clients to have the highest performance in the industry, quality manufacturing for reliability and attractive pricing relative to other "remote shut-off" options. By contrast, with respect to our Bluebot product, we have introduced it to national commercial customers. Such customers value its ease of installation given that Bluebot devices can wrap around the pipe and its attractive price point. These channels are willing to trade-off the lack of remote shut-off capability given that commercial locations cannot afford to shut-off the water during business hours but instead rely on ALD "first responder" service capability to dispatch service teams to minimize water loss and damage.
These outcomes from paid pilots validate our confidence in the PM growth strategy and enable us to start scaling up in Q4 with financial milestones around which we can forecast. We will be also introducing additional Key Performance Indicators (KPIs), such as numbers of devices sold, for 2027.
Long-run Sustainability of Client Demand for Our TES Platform.
Market demand for preventive maintenance of aging water infrastructure is here to stay because the price of water and cost of water-related damage are only rising. In our 2025 Accounts, we outlined two emerging drivers that bring about a sea-change for customers to embrace preventive maintenance: (a) reduction in price of wireless monitoring devices; and (b) ready use of AI to integrate data emitted from devices with efficient service workflows to find and fix water and wastewater leaks proactively. Such continuous engagement with the client is critical as all pipes leak and undetected leaks only get worse.
Currently, the water infrastructure services market is still fragmented. ALD is the only nationwide leak detection and repair company in the US that has the operating scale and the prior technology investments in proprietary acoustic-based tools, world-class CRM and national channels to effectively integrate monitoring devices and aftercare. There are many monitoring companies with differing technologies, producing erratic results and offering varying price points. These product companies do not have a direct, trained work forcelike our core business - American Leak Detection - to provide timely, quality care and consistent pricing for clients. Customer satisfaction is low for these device companies creating an opportunity for our TES platform to curate water monitoring devices and seamlessly integrate care for our clients. Customers will pay for such value delivery. Moreover, we can make good on the promise of data from monitoring products by leveraging our Salesforce database to improve flow algorithms. We have done this with our product partners to develop improved risk profiles.
Capital Allocation and Strategic Direction. We are pleased with our progress on delivering a TES platform. It has taken significant investment in integrating a nationwide operation with a world class CRM backbone and a network of B2B channels. On the other hand, given the reduced prices for devices and the rise of AI, we have a ready to go platform that produces competitive differentiation in the marketplace and barriers to entry. We have the capital to execute our "go-to-market" plan to boost organic sales. Our balance sheet is strong. We have cash - $4.4 million - as of 30 June 2026. We also generate cash from operations, including from royalty income and we are under-levered. Our Net Total Debt to EBITDA Adjusted is 1.29 as of 30 June 2026. Given our balance sheet, we can also be selective about acquisitions whether our own franchises or third party companies especially plumbing companies to open geographies as we did in Ireland.
We are encouraged by the paid pilots and believe that we are bringing, at the right time, the right set of resources to bear on global market demand for preventive maintenance solutions.
Patrick DeSouza
Executive Chairman
Interim Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2026
Six months
ended
30 June
2026
Six months
ended
30 June
2025
Year ended
31
December
2025
Notes
$
$
$
Unaudited
Unaudited
Audited
Revenue
4
48,240,254
45,025,419
90,428,290
Cost of sales
(4,951,874)
(4,346,322)
(9,380,445)
Gross profit
43,288,380
40,679,097
81,047,845
Administrative expenses
- Other income
181,109
96,780
1,432,757
- Share-based payments
(178,099)
(174,915)
(302,012)
- Amortisation of intangibles
(314,163)
(455,240)
(957,966)
- Other administrative costs
(38,541,949)
(34,920,757)
(72,351,158)
Total administrative expenses
(38,853,102)
(35,454,132)
(72,178,379)
Operating profit
4,435,278
5,224,965
8,869,466
Finance income
57,055
227,773
339,321
Finance expense
(1,203,608)
(1,222,090)
(2,421,687)
Profit before tax
4
3,288,725
4,230,648
6,787,100
Taxation expense
(822,183)
(1,075,568)
(1,646,071)
Profit for the period
2,466,542
3,155,080
5,141,029
Attributable to:
Equity holders of the parent
2,380,275
3,092,602
4,940,726
Non-controlling interests
86,267
62,478
200,303
2,466,542
3,155,080
5,141,029
Other comprehensive income
Exchange differences arising on translation of foreign operations
(181,992)
382,203
156,321
Cash flow hedge movement not subsequently reclassified to the P&L
276,043
(485,817)
(513,013)
Fair value adjustment on listed equity investment (net of deferred tax)
31,666
(32,186)
(392)
Total comprehensive income for the period
2,592,259
3,019,280
4,783,945
Earnings per share
Cents
Cents
Cents
Basic
5
14.1
17.8
28.7
Diluted
5
13.8
17.4
28.0
Consolidated Statement of Financial Position as at 30 June 2026
At
30 June
2026
At
30 June
2025
At
31 December
2025
Notes
$
$
$
Unaudited
Unaudited
Audited
ASSETS
Non-current assets
Goodwill
69,720,998
68,928,861
69,520,998
Listed equity investment
328,577
255,558
292,067
Other intangible assets
17,755,807
14,062,379
15,738,921
Interest rate swap
254,854
6,007
-
Property, plant and equipment
14,929,706
15,121,544
15,362,937
Trade and other receivables
211,602
288,694
239,554
103,201,544
98,663,043
101,154,477
Current assets
Inventories
1,647,330
882,747
1,697,976
Trade and other receivables
15,032,744
13,182,487
10,716,172
Investments
-
4,207,544
-
Cash and cash equivalents
4,371,075
4,211,873
6,041,905
21,051,149
22,484,651
18,456,053
TOTAL ASSETS
4
124,252,693
121,147,695
119,610,530
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
35,417,072
35,417,072
Shares held in treasury
6
(2,861,883)
(1,149,538)
(2,514,949)
Merger reserve
1,001,150
1,001,150
1,001,150
Share based payment reserve
3,302,477
2,997,281
3,124,378
Foreign exchange reserve
(1,504,560)
(1,096,684)
(1,322,568)
Reverse acquisition reserve
6
(27,758,088)
(27,758,088)
(27,758,088)
Equity investment reserve
(763,395)
(826,855)
(795,061)
Cash flow hedge reserve
254,853
6,007
(21,189)
Retained profit
63,339,307
59,110,907
60,959,031
70,570,123
67,844,442
68,232,966
Equity attributable to Non-Controlling interest
Non-controlling interest
432,979
359,213
497,039
Non-current liabilities
Borrowings and lease liabilities
30,400,388
27,981,083
28,000,917
Deferred consideration
2,703,095
3,956,104
4,236,511
Interest rate swap
-
-
21,189
Deferred tax liability
5,380,625
4,246,026
4,564,997
38,484,108
36,183,213
36,823,614
Current liabilities
Trade and other payables
7,631,860
7,230,496
7,430,141
Borrowings and lease liabilities
5,480,614
3,964,092
5,278,673
Deferred consideration
1,653,009
5,566,238
1,348,097
14,765,483
16,760,827
14,056,911
TOTAL EQUITY AND LIABILITIES
124,252,693
121,147,695
119,610,530
Interim Consolidated Statement of Changes in Equity
For the six months ended 30 June 2026
Share
Capital
Share
Premium
Shares held
in treasury
Reverse Acquisition Reserve
Merger
Reserve
Share based payment reserve
Foreign exchange reserve
Equity investment reserve
Cash Flow
Hedge Reserve
Retained
Profit
Total
Non-controlling interest
Total
Equity
$
$
$
$
$
$
$
$
$
$
$
$
$
As at 1 January 2025
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
-
-
-
-
-
-
-
-
-
3,092,603
3,092,603
62,478
3,155,081
Other comprehensive income
-
-
-
-
-
-
382,206
(32,186)
(485,817)
-
(135,797)
-
(135,797)
As at 30 June 2025 (unaudited)
143,192
35,417,072
(1,149,538)
(27,758,088)
1,001,150
2,997,281
(1,096,684)
(826,855)
6,007
59,110,907
67,844,441
359,216
68,203,656
Share-based payment expense
-
-
-
-
-
127,097
-
-
-
-
127,097
-
127,097
Share buyback
-
-
(1,365,411)
-
-
-
-
-
-
-
(1,365,411)
-
(1,365,411)
Profit for the period
-
-
-
-
-
-
-
-
-
1,848,124
1,848,124
137,825
1,985,949
Other comprehensive income
-
-
-
-
-
-
(225,884)
31,794
(27,196)
-
(221,286)
-
(221,286)
As at 31 December 2025 (audited)
143,192
35,417,072
(2,514,949)
(27,758,088)
1,001,150
3,124,377
(1,322,568)
(795,061
(21,189)
60,959,030
68,322,967
497,039
68,730,007
Share based payment expense
-
-
-
-
-
178,099
-
-
-
-
178,099
-
178,099
Share buyback
-
-
(346,934)
-
-
-
-
-
-
-
(346,934)
-
(346,934)
Distribution to non-controlling interest
-
-
-
-
-
-
-
-
-
-
-
(199,327)
(199,327)
Contribution by non-controlling interest
-
-
-
-
-
-
-
-
-
-
-
49,000
49,000
Profit for the period
-
-
-
-
-
-
-
-
-
2,380,275
2,380,275
86,267
2,466,542
Other comprehensive income
-
-
-
-
-
-
(181,992)
31,666
276,043
-
125,717
-
125,717
As at 30 June 2026 (unaudited)
143,192
35,417,072
(2,861,883)
(27,758,088)
1,001,150
3,302,475
(1,504,560)
(763,395)
254,854
63,339,306
70,570,122
432,980
71,003,101
Interim Consolidated Statement of Cash Flows
For the six months ended 30 June 2026
Six months
ended
30 June 2026
Six months
ended
30 June 2025
Year ended
31 December 2025
$
$
$
Unaudited
Unaudited
Audited
Cash flows from operating activities
Profit before tax
3,288,725
4,230,648
6,787,100
Adjustments for non-cash/non-operating items:
Depreciation of plant and equipment
2,741,900
2,547,496
5,239,297
Amortisation of intangible assets
314,164
455,240
957,966
Share based payments
178,099
174,915
302,012
Gain from elimination of contingent consideration
(99,000)
-
(1,285,099)
Goodwill impairment
-
-
125,000
Interest paid
1,203,608
1,222,090
2,421,687
Interest received
(57,055)
(227,773)
(339,321)
Operating cash flows before movements in working capital
7,570,441
8,402,614
14,208,642
(Increase)/Decrease in inventories
50,645
47,693
(767,536)
(Increase)/Decrease in trade and other receivables
(4,239,619)
(2,275,154)
196,176
Increase in trade and other payables
38,125
571,899
613,277
Cash generated by operations
3,419,592
6,747,052
14,250,559
Income taxes
(11,400)
(38,008)
(250,129)
Net cash generated from operating activities
3,408,192
6,709,044
14,000,430
Cash flows from investing activities
Purchase of plant and equipment
(426,847)
(608,449)
(1,904,076)
Disposal of plant and equipment
204,743
66,845
215,574
Purchase of intangibles
(2,329,790)
(2,682,026)
(5,006,843)
Reacquisition of Franchises
(175,000)
(2,900,000)
(3,225,000)
Sale of investments
-
2,475,545
6,683,089
Interest received
57,055
227,773
339,321
Net cash used in investing activities
(2,669,839)
(3,420,312)
(2,897,935)
Cash flows from financing activities
Share buy-back
(346,934)
(265,990)
(1,631,401)
Distribution to non-controlling interest
(199,327)
(158,272)
(158,272)
Interest paid
(1,203,608)
(1,087,157)
(2,350,054)
Proceeds from borrowings
3,000,000
-
1,725,000
Repayment of borrowings
(1,202,929)
(1,074,804)
(2,161,053)
Repayment of notes
(1,154,505)
(1,009,324)
(3,965,627)
Repayment of lease liabilities
(1,301,880)
(933,790)
(1,971,663)
Net cash used in financing activities
(2,409,183)
(4,529,337)
(10,513,069)
Net (decrease)/increase in cash and cash equivalents
(1,670,830)
(1,240,605)
589,426Cash and cash equivalents at the beginning of period
6,041,905
5,452,479
5,452,479Cash and cash equivalents at end of period
4,371,075
4,211,874
6,041,905
Notes to the Interim Consolidated Financial Information
for the six months ended 30 June 2026
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 2025.
This interim consolidated financial information for the six months ended 30 June 2026 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 2025, 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 2026 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 2025 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 2026 was £1 = US$ 1.3232 (30 June 2025: £1 = US$ 1.3724).
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 2025.
3 Significant events and transactions
Repurchase of Group shares: 116,500
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 2026, 80.2% (1H 2025: 84.8%) of its revenue came from the US-based operations; the remaining 19.8% (1H 2025: 15.2%) 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
30 June 2026
Six months ended
30 June 2025
Year ended
31 December
2025
$
$
$
Unaudited
Unaudited
Audited
Franchise royalty income
3,141,483
3,212,811
6,025,980
Franchise related activities
5,400,832
4,679,930
10,069,327
US corporate operated locations
30,162,522
30,337,393
59,589,413
International corporate operated locations
9,535,416
6,795,286
14,743,571
Total
48,240,253
45,025,420
90,428,290
Profit before tax
Six months ended
30 June 2026
Six months ended
30 June 2025
Year ended
31 December
2025
$
$
$
Unaudited
Unaudited
Audited
Franchise royalty income
1,162,352
1,178,168
2,217,538
Franchise related activities
408,451
333,608
688,882
US corporate operated locations
4,423,821
5,378,814
11,566,890
International corporate operated locations
119,951
(167,683)
(291,223)
Unallocated head office costs
(911,350)
(1,867,259)
(6,920,086)
Net Non-core costs/gains
(1,914,500)
(625,000)
(474,901)
Total
3,288,725
4,230,648
6,787,100
Assets
Six months
ended
30 June 2026
Six months
ended
30 June 2025
Year ended
31 December
2025
$
$
$
Unaudited
Unaudited
Audited
Franchise royalty income
25,093,167
25,435,882
23,070,896
Franchise related activities
4,731,639
3,429,417
4,015,359
US corporate operated locations
76,224,948
74,788,134
74,984,509
International corporate operated locations
18,202,939
17,494,262
17,539,767
Total
124,252,693
121,147,695
119,610,530
Geographic Information
The Group has two wholly-owned subsidiaries - 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 2026
Unaudited
Six months ended 30 June 2025
Unaudited
Year ended 31 December 2025
Audited
US
International
Total
US
International
Total
US
International
Total
$
$
$
$
$
$
$
$
$
Franchise royalty income
3,109,864
31,618
3,141,483
3,179,120
33,692
3,212,811
5,951,208
74,772
6,025,980
Franchise related activities
5,400,832
-
5,400,832
4,679,930
-
4,679,930
10,069,327
-
10,069,327
US corporate operated locations
30,162,522
-
30,162,522
30,337,393
-
30,337,393
59,589,413
-
59,589,413
International corporate operated locations
-
9,535,416
9,535,416
-
6,795,286
6,795,286
-
14,743,571
14,743,571
Total
38,673,219
9,567,034
48,240,253
38,196,442
6,828,978
45,025,420
75,609,948
14,818,343
90,428,290
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
30 June 2026
Six months ended
30 June 2025
Year ended
31 December 2025
Unaudited
Unaudited
Audited
Earnings attributable to shareholders of the Company ($)
2,380,275
3,092,602
4,940,726
Weighted average number of ordinary shares
16,860,242
17,333,707
17,217,593
Diluted weighted average number of ordinary shares
17,210,906
17,756,887
17,617,356
Earnings per share (cents)
14.1
17.8
28.7
Diluted earnings per share (cents)
13.8
17.4
28.0
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 of 1p each
Shares held in treasury Number
Number
Total Number
At 30 June 2026
16,802,038
685,650
17,487,688
At 30 June 2025
17,311,538
176,150
17,487,688
At 31 December 2025
16,918,538
569,150
17,487,688
The net number of options including the new grants and leavers from the Company at 30 June 2026 is 3,633,000. On 25 March 2026 the Company issued options for 385,000 shares to satisfy 2025 Board Compensation. The options have an exercise price of 300p.
Group & Company
Share Capital
Share Premium
Shares In Treasury
$
$
$
At 30 June 2026
143,192
35,417,071
(2,861,883)
At 30 June 2025
143,192
35,417,071
(1,149,538)
At 31 December 2025
143,192
35,417,071
(2,514,949)
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
During the period, the Group bought back 116,500 shares into treasury, in line with its stated capital allocation policy. As at 30 June 2026, the Group held 670,650 ordinary shares of 1 penny each in treasury.
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. This announcement is not being sent to shareholders.
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