Business
Full Year Trading Update
Full Year Trading Update.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n\n\n2023 Full Year Trading Update\nAcquisition of Pittsburgh Franchise\n \nWater Intelligence plc (AIM: WATR.L) (\"Water Intelligence\" or the \"Group\"), a leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water, is pleased to provide a trading update for the year ended 31 December 2023 and also to announce the re-acquisition of its Pittsburgh franchise by its American Leak Detection (\"ALD\") subsidiary. The Group is in-line with market expectations and has launched 2024 with momentum for growth.\n2023 Overview / 2024 Outlook\nFor the full year ended 31 December 2023, Water Intelligence performed in-line with market expectations despite the sharp rise in interest rates and persistent inflation adversely shaping consumer spending decisions. In keeping with its strategic plan of growing organically and through acquisition, the Group has started off 2024 with recently announced insurance wins and now the reacquisition of its Pittsburgh franchise and conversion to a corporate-operated location.\nFinancials \nAll headline numbers were positive. Revenue during 2023 grew 7% to $76.0 million (2022: $71.3 million). Statutory Profit Before Tax grew 13% to $6.2 million (2022: $5.5 million). Adjusted Profit Before Tax grew 12% to $8.7 million (2022: $7.8 million). Statutory EBITDA grew 7% to $11.8 million (2022: $11.1 million). Adjusted EBITDA grew 9% to $13.4 million (2022: $12.4 million).\nMargins improved despite continued inflation in the US. Adjusted PBT margins increased to 11.5% (2022: 10.9%); Adjusted EBITDA margins increased to 17.7% (2022: 17.3%).\nIn terms of market capture, network sales (direct corporate sales and indirect gross sales to third parties from which franchise royalty is derived) grew approximately 3%, reaching approximately $170 million (2022: $165 million). \nThe balance sheet as at year-end 2023 remained strong, thus maintaining capacity for capital to be allocated to growth investments in 2024. At 31 December, the Group had cash of $15.8 million and Total Debt (Bank Debt and Deferred Payments for Acquisitions) of $22.8 million. Hence, the Group's Net Total Debt to EBITDA ratio was 0.60 and Net Total Debt to Adjusted EBITDA was 0.53. With our conservative bala...