Business
2018 Full Year Trading Results
2018 Full Year Trading Results.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \nRNS Number : 5645S Water Intelligence PLC 12 March 2019 \n\n \n \nWater Intelligence plc \n2018 Full Year Trading Results\nConfirmation of Board Appointment\nWater Intelligence plc (AIM: WATR.L) (the \"Company\" 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 unaudited Trading Results for full year 2018. Audited 2018 results are expected during early May as traditionally released. The Company had a very strong 2018 as discussed herein.\nHighlights\n· Results ahead of market expectations for both revenue and adjusted profits before tax\n· Water Intelligence revenue growth once again strong at 44% year-over-year reaching $25.3 million (2017: $17.6 million)\no Last three-year CAGR (Compound Annual Growth Rate) exceeds 40%\no Core business units - American Leak Detection (ALD) and Water Intelligence International (WII) - each grew strongly enabling broader mix of residential, commercial and municipal offerings, as well as clean and waste water\no ALD revenue grew 45% to $22.5 million (2017: $15.5 million)\n§ Royalty income from franchisees grew in absolute terms by 5.7% to $6.3 million (2017: $5.9 million) despite continued franchise reacquisitions\n§ Selective franchise reacquisitions continue, increasing corporate presence for national accounts implementation\n§ Corporate locations sales grew 70% year-over-year to $10.1 million (2017: $5.9 million)\n§ Total sales to customers reaches $100 million (implied gross sales by franchisees from which royalty reporting is derived plus direct sales from corporate locations)\no WII revenue grew 38% to $2.9 million for 2018 after launch in Q4 2016\n· Water Intelligence statutory profits before tax grew strongly by 58% to $1.8 million (2017: $1.1 million)\no Reinforced yearly profits growth path from 2017 over 2016 which was 48%\no Corporate locations profit margins scaling to 12% in 2018 from 4% in 2017 despite reinvestment to sustain 70% sales growth\n· Water Intelligence profits before tax adjusted for non-core costs* and non-cash amortization expense at $2.5 million exceeds market expectations of $2.2 million (48% growth over 2017 at $1...