Business
Reacquisition of Brisbane, Australia Franchise
Reacquisition of Brisbane, Australia Franchise.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5098A\n Water Intelligence PLC\n 30 September 2020\n \n \n \n \n \n Water Intelligence plc\n \n \n \n Reacquisition of Brisbane, Australia Franchise\n \n \n Water Intelligence plc (AIM: WATR.L) (\"Water Intelligence\" or \"Group\"), a leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water \n is pleased to announce an agreement to reacquire its franchise operation in Brisbane, Australia within the Group's American Leak Detection subsidiary (\"ALD\"). The transaction is pending certain regulatory requirements that should be satisfied during October. \n \n \n Brisbane is the third most populous city in Australia. The reacquisition follows July's reacquisition of the ALD franchise in Melbourne and the previous reacquisition of the ALD franchise in Sydney. As a result, the Group now will have corporate operations in the three most populous cities in Australia. Such critical mass will enable the Group to better support the growth of current and new ALD franchises and corporate operations throughout the eastern half of Australia. \n \n \n Due to strong demand for water conservation - residential, commercial and municipal - and an existing base of corporate and franchise operations to fulfil such demand, Australia is an important geography for the Group's strategic growth plan. \n \n \n The reacquisition is accretive to shareholder value. Brisbane operations generated approximately AUD$0.5 million in revenue and AUD$0.1 million in pre-tax profits for the trailing twelve months which includes a period of slowdown due to Covid. The purchase price is AUD$550,000. Management will be staying with the Group's corporate operations. The purchase agreement has incentives for a price adjustment upward if management accelerates revenue and profits over the next twelve months as the marketplace adjusts. Despite Covid-19's impact on Australia, the Group continues to operate in Australia as an \"essential service\" provider to support water and wastewater infrastructure. \n \n \n Commenting on the Group's reacquisition, Executive Chairman, Dr. Patrick DeSouza remarked: \"With our growth-focused execution, we continue to distinguish ourselves among companies operating in the Covid-19 marketpl...