Water Intelligence PLC Reacquisition of South Atlanta Franchise (1022S)
March 07 2019 - 2:02AM
UK Regulatory
TIDMWATR
RNS Number : 1022S
Water Intelligence PLC
07 March 2019
Water Intelligence plc
("WATR" or the "Company")
Reacquisition of South Atlanta Franchise
Timing of 2018 Trading and Corporate Updates
Water Intelligence plc (AIM: WATR.L), a leading multinational
provider of precision, minimally-invasive leak detection and
remediation solutions for both potable and non-potable water is
pleased to announce the reacquisition of its American Leak
Detection South Atlanta franchise for $425,000.
The reacquisition is strategic for various reasons, all
beneficial for reinforcing the Company's growth trajectory and more
fully realizing its plan to unlock equity value as previously
discussed in our annual reports.
First, South Atlanta is a central area for creating a regional
corporate presence to help accelerate development of southeastern
franchises, including a couple of large franchises that could still
accelerate their growth given the size of regional market. Today's
reacquisition follows January's reacquisition of Ontario, Canada to
create a similar regional corporate presence in northeast Canada
and upstate New York.
Second, the franchise achieved approximately $320,000 of sales
during 2018. However, with corporate financial support it is
expected that this territory can grow much faster reinforcing the
Company's 2019 plan.
Third, there is significant undeveloped territory in southern
Georgia as part of the franchise. In terms of the evolution of
corporate strategy, now that Water Intelligence has had significant
experience in growing corporate locations as well as franchise
locations, more options are available to unlock value. Water
Intelligence has the opportunity not only to accelerate growth in
the developed part of the South Atlanta territory but also to now
resell the undeveloped territory as part of a new right-sized
franchise. Given the increasing equity value of franchises,
especially because of the additional support from established
regional corporate hubs, Water Intelligence already has received
expressions of interest to purchase any new territory made
available.
Finally, the current franchise owner has agreed to stay with
American Leak Detection and open a new corporate location given his
experience. Water Intelligence is currently reviewing new locations
to push further market capture. Much like the Ontario transaction,
the Company plans to grow from within and retain experienced
managers after reacquisition.
Corporate Development and Administration
New Technologies Update. As noted in previous releases, during
2018 Water Intelligence has invested in certain new technologies to
advance its leadership in the market and fuel growth. First, the
Company, as planned, introduced its new sewer diagnostic product at
the Water and Wastewater Equipment, Treatment and Transport Show
February 20-23 in Indianapolis. Given favourable reaction, the
Company will be introducing the proprietary tool to the ALD
franchise system in Q2 to initiate a new line of service.
Further, as previously announced in December 2017 and January
2018, the Company set up partnerships with Tagasauris and Flo
Technologies to introduce artificial intelligence and video
e-commerce of products for the water industry and the Company's
national insurance customers. Water Intelligence will be
introducing its video player in Tokyo during the week of 18 March
in collaboration with a major Japanese corporation that is also
interested in deploying the video player for its consumer strategy.
Water Intelligence will be rolling out its video player during Q2
as well.
2018 Trading Update. It is anticipated that the 2018 Trading
Update will be released on Tuesday, 12 March. The Company's 2018
audit process has begun with the audited results and Annual Report
anticipated in early May as typical.
Dr. Patrick DeSouza, Executive Chairman, commented: "The first
quarter has been very productive in continuing the strong
trajectory that the Company has enjoyed consistently over the last
several years. We aim high and deliver. We will provide a detailed
update with our 2018 Trading Update. We continue to look forward to
a strong 2019 building upon our record and our goal of significant
and sustainable multinational growth."
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information about this announcement please
contact:
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 & Tel: +44 (0) 207 220 1666
Broker
Adrian Hadden
James Sinclair-Ford
Matthew Chan
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 or visit www.rns.com.
END
ACQEAEDXEENNEEF
(END) Dow Jones Newswires
March 07, 2019 02:02 ET (07:02 GMT)
Water Intelligence (LSE:WATR)
Historical Stock Chart
From Apr 2024 to May 2024
Water Intelligence (LSE:WATR)
Historical Stock Chart
From May 2023 to May 2024