Business
Trading Update and Acquisition
Trading Update and Acquisition.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \n \n \n \n \n 2022 Full Year Trading Update\n \n \n and\nAcquisition of Nashville Franchise\n \n \n \n \n \n Water 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 and operational highlights for the year ended 31 December 2022 and also to announce the strategic acquisition by its American Leak Detection subsidiary of its Nashville franchise.\n \n \n The Group continues to perform strongly despite ongoing macroeconomic uncertainty. Market demand for the Group's water leak detection and repair solutions remains strong despite signs of recessionary pressure going into 2023.\n \n \n In terms of market capture, network sales (direct corporate sales and indirect gross sales to third parties from which franchise royalty is derived) grew approximately 10.5%, reaching approximately $168 million (FY 2021: $152 million). \n \n \n \n Franchise Acquisition / Subsequent Event\n \n \n \n We are pleased to announce that the Group has reacquired its Nashville, Tennessee franchise. The acquisition is pursuant to the Group's growth strategy of creating regional hubs and adds further corporate scale to operations in the Midwest, United States. The cash consideration for the acquisition is $3.25 million based on a 2022 Adjusted Income Statement of $2.4 million in revenue and $550,000 in profit before tax and includes the transfer of all operating assets to the Group.\n \n \n 2022 Highlights\n \n Financial Performance\n \n v \n Group Revenue increased by 31% to $71.3 million (2021: $54.5 million)\n \n \n \n \n \n American Leak Detection subsidiary\n \n \n §\n Franchise royalty declined 1% to $6.7 million (2021: $6.8 million) due to the franchise acquisitions in 2021 reducing the pool of franchise royalty for 2022 (without these acquisitions franchise royalty would have grown 8%)\n \n \n ·\n Franchise Related Activities (Insurance Channel) grew 9% to $10.6 million (2021: $9.8 million)\n \n \n §\n US Corporate locations sales grew 48% to $47.3 million (2021: $31.9 million)\n \n \n ·\n Same store sales grew 25% to $36.2 million (2021: $28.9 million)\n \n \n ·\n Same store profits grew 14% to $6.2 milli...