Business
Reacquisition of Melbourne, Australia Franchise
Reacquisition of Melbourne, Australia Franchise.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \n \n RNS Number : 0030V\n Water Intelligence PLC\n 04 August 2020\n \n \n \n \n \n \n \n \n \n \n Water Intelligence plc\n \n \n \n Reacquisition of Melbourne, 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 the reacquisition of its franchise operation in Melbourne, Australia within the Group's American Leak Detection subsidiary (\"ALD\"). The Group continues to execute its strategic growth plan and to build scale as an \"essential service provider\" for water and wastewater infrastructure solutions despite the challenges of Covid-19 affecting the broader marketplace.\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. Melbourne is a significant reacquisition because it complements the Group's other corporate base in Sydney. Between Melbourne and Sydney, the Group can better support growth of its existing franchise locations in the eastern half of Australia. In addition, following the acquisition of Melbourne, the Group intends to expand operations further west to Adelaide and Perth, both of which remain untapped. \n \n \n The reacquisition is accretive to shareholder value. 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. Financially, for the trailing twelve months, which includes six months of Covid-impacted results, the Melbourne operation generated AUD$1.29 million in sales and AUD$0.27 million in profits. The purchase price for the reacquisition which includes all assets to conduct operations (trucks, equipment etc.) is AUD$1.77 million. The Group plans to expand the Melbourne business by further leveraging Sydney's municipal solutions expertise and by gaining the benefits of various operating synergies between the two locations. \n \n \n Today's reacquisition continues the Group's drive to establish region...