Business
Trading Update 1Q 2020
Trading Update 1Q 2020.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \n \n RNS Number : 4020L\n Water Intelligence PLC\n 30 April 2020\n \n \n \n \n \n \n \n Water Intelligence plc\n \n \n \n \n \n Trading Update 1Q 2020\n \n \n Water Intelligence plc (AIM: WATR.L) (\"Water Intelligence\" or \"Company\"), a leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water \n is pleased to provide a trading update for year-to-date through the end of the first quarter. \n \n \n Results for 2020 through 1Q show continued growth in revenue and profits; results are comfortably in-line with expectations for both revenue and profit before taxes (statutory and adjusted). \n \n \n Given the onset of the Covid-19 crisis during 1Q, the Company has shown strong execution and remains on track to deploy a new proprietary sewer diagnostic product to serve customers in navigating a public health issue of pipes clogged with sanitary wipes during the crisis. \n \n \n Highlights:\n \n \n · \n Financial\n : Water Intelligence revenues grew strongly by 15% to $8.3 million (1Q 2019: $7.2 million); profits before taxes (statutory) grew strongly by 35% to $0.7 million (1Q 2019: $0.5 million)\n \n \n Key Performance Indicators\n \n \n o \n Franchise: American Leak Detection franchise royalties grew 4% to $1.8 million (1Q 2019: $1.7 million) \n \n \n § \n Implying approximately $25 million in year-to-date gross sales to third parties from which royalty is derived\n \n \n o \n Franchise-Related Activities: business-to-business insurance channel; equipment sales, franchise sales grew 11% to $2.1 million (1Q 2019: $1.9 million)\n \n o \n US Corporate-Operated Locations: grew 29% to $3.6 million (1Q 2019: $2.8 million)\n \n \n o \n International Corporate-Operated Locations: grew 14% to $0.8 million (1Q 2019: $0.7 million)\n \n \n § \n Includes UK municipal operations and full-service operations in Ontario, Canada and Sydney, Australia \n \n \n o \n Net Cash (Cash minus Total Borrowings and Deferred Consideration for Franchise Reacquisitions through 2025): ($0.13) million\n \n \n o \n Water Intelligence profit before taxes adjusted for non-cash expenses (amortization and share-based payments) comfortably in-line with expectations growing 38% to $0.83 million (1Q 2019: $0.6 million)\n \n \n \n \n \n · \n C...