Water Intelligence plc (AIM: WATR.L)
("Water Intelligence", the "Group" or the "Company")
Interim Results for the six months ended 30 June 2012
Water Intelligence, which is building a market-leading position as provider of water monitoring products and leak detection and remediation services to a broad range of customers including blue-chip UK utilities, such as Thames Water, announces strong interim results. The Group was established following completion of the reverse takeover of Qonnectis plc ('Qonnectis') by American Leak Detection Holding Corp ('ALDHC') in July 2010.
Financial Highlights
|
|
Six months ended 30 June 2012 |
Six months ended 30 June 2011 |
Year ended 31 December 2011 |
|
|
$'000 |
$'000 |
$'000 |
Total revenue |
|
3,262 |
3,374 |
6,358 |
Operating profit/(loss) |
|
574 |
296 |
(99) |
Profit /(Loss) before tax |
|
456 |
143 |
(197) |
Earnings/(Loss) per share (diluted) |
|
2.78c |
1.51c |
(4.50c) |
Highlights
· Profitability increased significantly; operating profits increased 94% and profits before tax increased 219%.
· Revenue stable in the period compared to previous year with approximately $400,000 in respect of a confirmed Leakfrog order in May 2012 from Thames Water which will not be recognised until 2H of this year based on delivery and payment schedule that started in August. If the Thames order had been delivered in 1H revenue would have increased 9% to $3.66 million.
· Qonnectis's Leakfrog sales for 2012 will have almost doubled over Leakfrog sales for 2011.
· American Leak Detection franchise royalty income increased 8%; corporate store sales increased 8.5% and returned to profitability.
· Strategic channel programs initiated at American Leak Detection to address customer needs in the insurance and restoration markets.
· Domestic Reporter tested successfully at Thames Water during June 2012.
Patrick DeSouza, Executive Chairman of Water Intelligence, comments:
"The Group is beginning to build real momentum. Whilst we are of course delighted with the improvement in financial performance, especially regarding earnings, the real excitement lies in the increasing demand and reach for American Leak Detection services and the traction we are gaining with major utility customers as they come to recognise the quality and value of our products. We believe that we can sustain this progress and take advantage of favourable market demand for water infrastructure solutions despite general market conditions in Europe and the United States that are less certain for other sectors."
27 September 2012
ENQUIRIES:
Water Intelligence plc (www.waterintelligence.co.uk) |
|
Patrick DeSouza, Executive Chairman |
Tel: +1 203 654 5426 |
|
|
Merchant Securities Limited |
|
David Worlidge/Simon Clements |
Tel: +44 20 7628 2200 |
|
|
College Hill |
|
Mark Garraway |
Tel: +44 20 7457 2020 |
Executive Chairman's Statement
The Interim results for the six months ended 30 June 2012 demonstrate our continued growth in key business drivers - revenue, earnings, margin, product commercialisation and strategic channels - since Water Intelligence plc was admitted to the AIM market in July 2010. Most importantly, despite difficult macroeconomic conditions in Europe and in the United States, our core American Leak Detection (ALD) business is thriving, leading the way with strong top and bottom-line growth. We are focusing our operating plan for 2013 to take advantage of such stable growth. We have initiated strategic channel programmes during the first half at ALD to take advantage of opportunities with insurance and restoration customers. We expect these programmes to start producing results during the second half of the year. We are also pleased with the successful testing of Domestic Reporter with Thames Water in June 2012. We are enthusiastic that businesses providing solutions with respect to scarce natural resources, especially water, face favourable market trends at both product and services segments.
We noted in our 2011 Annual Report that we believed we had the balance right for our operating plan during 2011. Revenue grew 12% during 2011; operating profits returned with our first full year of operations; loss before tax narrowed significantly as we completed the integration of Qonnectis; we delivered a larger order of Leakfrogs to Thames Water compared with 2010 and we anticipated commercialisation of our next generation of products during the second half of 2012. We indicated that because the investments in the UK product business had largely been completed, we would focus on driving our growing franchise services business. We have done that and marched forward during the first half of 2012
I am now pleased to report that we have achieved stronger results during 2012 across our operations. Although revenues for the six month period ended 30 June 2012 were $3.26 million compared with $3.37 million for the same period a year earlier, this excludes the $400,000 Leakfrog firm order received from Thames in May 2012, deliveries of which commenced in August 2012. The final delivery is expected to be completed in October 2012. Following the fulfilment of this order, Leakfrog sales will have almost doubled in 2012 compared to 2011. If the Thames order had been delivered in 1H, revenue would have been 9% higher than the comparable period, at approximately $3.66 million. In addition to these higher Leakfrog sales, franchise royalties and corporate-operated store revenue segments in the period ended 30 June 2012 increased 8% to $2.99 million from $2.76 million in the comparable 2011 period. Importantly, the margin from our activities increased which translated to the bottom-line. Earnings before interest and taxes (EBIT) increased 94% to $573,620 from $296,215. Profit before tax increased 219% to $456,482 from $143,473 translating to an increase of approximately 83% in earnings per share when compared to the same period in 2011.
Strategically, in June 2012 we completed a successful round of testing of our Domestic Reporter units with Thames Water. We have now moved to the next phase of the product cycle in preparing production-ready units. We are still hopeful on selling Domestic Reporters before the year-end and are working with UK water utilities to achieve this result. As profits have increased and our capital expenditure requirements for Domestic Reporter are complete, we are sticking to the operating plan and now re-investing in our franchise business to reinforce its strong performance for the second half and beyond.
Our balance sheet remains robust enabling us to plan for reinvestment to boost sustainable shareholder value. As noted above, earnings are up; meanwhile, the level of borrowing has been reduced. As of 30 June 2012, borrowings were steadily reduced in line with our bank amortisation schedule from $3.46 million at 30 June 2011 to $3.06 million at 30 June 2012. Net of cash, borrowings were reduced from $2.98 million at 30 June 2011 to $2.70 million at 30 June 2012.
We are now well positioned to achieve sustainable growth. As we develop our operating plan for 2013-14, we will be allocating resources between our product and services business lines not only to drive shareholder value but also to manage risk given global macroeconomic conditions. On the water leak detection services side, we have continued our growth and have positioned sales channels and reinvestment monies to accelerate that trend. Because of our core royalty-based franchise, with its distribution footprint across the U.S., we believe that sustainable growth carries less risk. The management team of American Leak and our franchisees are committed to exceed earnings plans with the right level of re-investment. Meanwhile, on the smart metering product side, we are pleased with the increasing size of the Leakfrog orders. And we believe that we now have exciting new products ready for the market led by Domestic Reporter that are expected to add scale to the Group's revenue and earnings. Like any product business line, we recognise that the opportunity cost and risk is relatively high reflecting the uncertain timing of technology adoption. We believe, however, that the potential for rapidly scaling the business supports the investment we have made.
Our focus for the second half of the year will be to build on the progress made in 1H and for the 2012 revenues to exceed those achieved in 2011. We believe we are now well on our way to building the business to generate shareholder value. We also believe that the strong and global market demand for complete solutions to monitoring, detecting and remediating water loss reinforces both our current and future operating plans. Our long-term macro-view with respect to the importance of water enables us to have confidence in building shareholder value irrespective of the economics affecting other industrial sectors.
Patrick De Souza
Executive Chairman
27 September 2012
Cautionary Statement
This interim financial information has been prepared for the shareholders of Water Intelligence, as a whole, and its sole purpose and use is to assist shareholders to exercise their governance rights. Water Intelligence and its Directors and employees are not responsible for any other purpose or use or to any other person in relation to this announcement.
The report contains indications of likely future developments and other forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group's results, strategy and prospects. Forward-looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ. No obligation is assumed to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Interim Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2012
|
|
Six months ended 30 June 2012 |
Six months ended 30 June 2011 |
Year Ended 31 December 2011 |
|
Notes |
$ |
$ |
$ |
|
|
Unaudited |
Unaudited |
Audited |
Revenue |
4 |
3,262,168 |
3,374,463 |
6,358,272 |
|
|
|
|
|
Cost of sales |
|
(238,796) |
(365,412) |
(498,704) |
|
|
|
|
|
Gross profit |
|
3,023,372 |
3,009,051 |
5,859,568 |
Administrative expenses |
|
|
|
|
- Share-based payments |
|
(15,240) |
(12,561) |
(36,643) |
- Impairment of Goodwill |
|
- |
- |
(75,000) |
- Amortisation of intangibles |
|
(131,732) |
(130,030) |
(264,062) |
- Other administrative costs |
|
(2,302,780) |
(2,570,245) |
(5,385,136) |
Total administrative expenses |
|
(2,449,752) |
(2,712,836) |
(5,760,841) |
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
573,620 |
296,215 |
98,727 |
|
|
|
|
|
Finance income |
|
13,527 |
9,522 |
22,808 |
Finance expense |
|
(130,685) |
(162,264) |
(318,578) |
|
|
|
|
|
Profit/(Loss) before tax |
|
456,462 |
143,473 |
(197,043) |
|
|
|
|
|
Taxation (expense)/credit |
|
(168,128) |
5,932 |
(264,145) |
|
|
|
|
|
Profit/(Loss) for the period |
|
288,334 |
149,405 |
(461,188) |
|
|
|
|
|
Other comprehensive income |
|
|
|
|
Exchange differences arising on translation of foreign operations |
|
(13,196) |
1,596 |
34,031 |
Total comprehensive profit/(loss) for the period |
|
275,138 |
151,001 |
(427,157) |
|
|
|
|
|
Earnings/(loss) per share |
|
Cents |
Cents |
Cents |
Basic |
5 |
2.86 |
1.56 |
(4.5) |
Diluted |
5 |
2.78 |
1.51 |
(4.5) |
Interim Consolidated Statement of Financial Position as at 30 June 2012
|
|
At 30 June 2012 |
At 30 June 2011 |
At 31 December 2011 |
|
|
$ |
$ |
$ |
|
|
Unaudited |
Unaudited |
Audited |
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Goodwill |
|
2,294,940 |
2,369,940 |
2,294,940 |
Other intangible assets |
|
3,734,423 |
3,841,091 |
3,709,060 |
Property, plant and equipment |
|
26,565 |
47,526 |
35,692 |
Deferred tax asset |
|
- |
198,927 |
55,218 |
Trade and other receivables |
|
57,494 |
62,424 |
44,839 |
|
|
6,113,422 |
6,519,908 |
6,139,749 |
|
|
|
|
|
Current assets |
|
|
|
|
Inventories |
|
110,591 |
104,277 |
91,270 |
Deferred tax asset |
|
- |
80,461 |
779,840 |
Trade and other receivables |
|
1,433,281 |
986,380 |
62,724 |
Cash and cash equivalents |
|
365,610 |
478,355 |
364,099 |
|
|
1,909,482 |
1,649,473 |
1,297,933 |
TOTAL ASSETS |
|
8,022,904 |
8,169,381 |
7,437,682 |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
Equity attributable to holders of the parent |
|
|
|
|
Share capital |
|
12,716,863 |
12,716,863 |
12,716,863 |
Share premium |
|
4,203,812 |
4,203,812 |
4,203,812 |
Capital redemption reserve |
|
6,517,644 |
6,517,644 |
6,517,644 |
Merger reserve |
|
8,501,150 |
8,501,150 |
8,501,150 |
Other reserves |
|
71,969 |
14,758 |
69,925 |
Reverse acquisition reserve |
|
(27,758,088) |
(27,758,088) |
(27,758,088) |
Retained loss |
|
(879,031) |
(556,772) |
(1,167,365) |
|
|
3,374,319 |
3,639,367 |
3,083,941 |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Borrowings |
|
2,273,084 |
2,879,724 |
2,582,964 |
Provision of onerous contracts |
|
64,436 |
159,022 |
72,359 |
|
|
2,337,520 |
3,038,746 |
2,655,323 |
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
1,339,117 |
772,527 |
970,984 |
Deferred tax |
|
89,196 |
- |
- |
Borrowings |
|
791,521 |
576,648 |
600,521 |
Promissory notes |
|
- |
58,858 |
7,272 |
Provision of onerous contracts |
|
91,231 |
83,235 |
119,641 |
|
|
2,311,065 |
1,491,268 |
1,698,418 |
TOTAL EQUITY AND LIABILITIES |
|
8,022,904 |
8,169,381 |
7,437,682 |
Interim Consolidated Statement of Changes in Equity
For the six months ended 30 June 2012
|
Share Capital |
Share Premium |
Capital Redemption Reserve |
Reverse Acquisition Reserve |
Merger Reserve |
Other Reserves |
Retained Profit/ (Loss) |
Total Equity |
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
As at 1 January 2011 |
12,716,863 |
4,203,812 |
6,517,644 |
(27,758,088) |
8,501,150 |
601 |
(706,177) |
3,475,805 |
Share based payment expense |
- |
- |
- |
- |
- |
12,561 |
- |
12,561 |
Total Comprehensive Income |
- |
- |
- |
- |
- |
1,596 |
149,405 |
151,001 |
As at 30 June 2011 (unaudited) |
12,716,863 |
4,203,812 |
6,517,644 |
(27,758,088) |
8,501,150 |
14,758 |
(556,772) |
3,639,367 |
Share based payment expense |
- |
- |
- |
- |
- |
24,082 |
- |
24,082 |
Foreign exchange |
- |
- |
- |
- |
- |
(1,350) |
- |
(1,350) |
Total comprehensive loss |
- |
- |
- |
- |
- |
32,435 |
(610,593) |
(578,158) |
As at 31 December 2011 (audited) |
12,716,863 |
4,203,812 |
6,517,644 |
(27,758,088) |
8,501,150 |
69,925 |
(1,167,365) |
3,083,941 |
Share based payment expense |
- |
- |
- |
- |
- |
15,240 |
- |
15,240 |
Total comprehensive profit |
- |
- |
- |
- |
- |
(13,196) |
288,334 |
275,138 |
As at 30 June 2012 (unaudited) |
12,716,863 |
4,203,812 |
6,517,644 |
(27,758,088) |
8,501,150 |
71,969 |
(879,031) |
3,374,319 |
Interim Consolidated Statement of Cash Flows
For the six months ended 30 June 2012
|
|
Six months ended 30 June 2012 |
Six months ended 30 June 2011 |
Year ended 31 December 2011 |
|
Notes |
$ |
$ |
$ |
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
|
|
Net cash generated from operating activities |
6 |
415,111 |
322,740 |
653,231 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Interest received |
|
13,527 |
9,522 |
22,808 |
Interest paid |
|
(127,386) |
(152,729) |
(318,578) |
Purchase of plant and equipment |
|
- |
- |
(3,883) |
Purchase of intangible assets |
|
(157,095) |
- |
- |
Sale of fixed assets |
|
- |
- |
300 |
Net cash used in investing activities |
|
(270,954) |
(143,207) |
(299,353) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Proceeds from borrowings |
|
162,380 |
- |
- |
Principal payments on long term debt |
|
(284,558) |
(272,010) |
(630,192) |
Repayment of loan note funding |
|
(7,272) |
(43,244) |
- |
Net cash used in financing activities |
|
(129,450) |
(315,254) |
(630,192) |
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
14,707 |
(135,721) |
(276,314) |
Cash and cash equivalents at the beginning of period |
|
364,099 |
606,382 |
606,382 |
Effect of foreign exchange rate changes |
|
(13,196) |
7,694 |
34,031 |
Cash and cash equivalents at end of period |
|
365,610 |
478,355 |
364,099 |
Notes to the Interim Consolidated Financial Information
for the six months ended 30 June 2012
1 General information
The Group is a leading provider of water monitoring products, leak detection equipment and remediation services. The Group's strategy is to focus on providing a critical mass of water management products and services and to be a "one-stop" shop for leak alerts, precision, non-invasive leak detection and remediation.
The Company is a public limited company domiciled in the United Kingdom and incorporated under registered number 03923150 in England and Wales. The Company's registered office is Hexagon Business Centre, Hexagon House, Station Lane, Witney, Oxfordshire, OX28 4BN.
2 Adoption of new and revised International Financial Reporting Standards
No new IFRS standards, amendments or interpretations became effective in the six months to 30 June 2012 which had a material effect on this interim consolidated financial information.
3 Significant accounting policies
Basis of preparation
The accounting policies adopted are consistent with those of the previous financial year.
This interim consolidated financial information for the six months ended 30 June 2012 has been prepared in accordance with IAS 34, 'Interim financial reporting'. This interim consolidated financial information is not the group's statutory financial statements and should be read in conjunction with the annual financial statements for the year ended 31 December 2011, which have been prepared in accordance with International Financial Reporting Standards (IFRS) and have been delivered to the Registrar of Companies. The auditors have reported on those accounts; their report was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis of matter without qualifying their report and did not contain statements under section 498(2) or (3) of the Companies Act 2006.
The interim consolidated financial information for the six months ended 30 June 2012 is unaudited. In the opinion of the Directors, the interim consolidated financial information presents fairly the financial position, and results from operations and cash flows for the period. Comparative numbers for the six months ended 30 June 2011 are unaudited.
This interim consolidated financial information is presented in US Dollars ($), rounded to the nearest dollar.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.
Foreign currencies
(i) Functional and presentational currency
Items included in this interim consolidated financial information are measured using the currency of the primary economic environment in which each entity operates ("the functional currency") which is considered by the Directors to be the Pounds Sterling (£) for the Parent Company and US Dollars ($) for American Leak Detection Holding Corp. This interim consolidated financial information has been presented in US Dollars which represents the dominant economic environment in which the Group operates and is considered to be the functional currency of the group. The effective exchange rate at 30 June 2012 was £1 = US$1.57095 (30 June 2011: £1 = US$ 1.6018).
Critical accounting estimates and judgments
The preparation of interim consolidated financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, the resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed in the relevant notes.
In preparing this interim consolidated financial information, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2011.
4 Revenues
In the opinion of the Directors, the operations of the Group currently comprise four operating segments, being the franchises, corporate owned stores and otheractivities including product and equipment sales and head office costs.
The Group mainly operates in the US, with operations in the UK and certain other countries. In the six months to 30 June 2012, 96% of its revenue came from the US based operations, the remaining 4% of its revenue came from either UK or overseas based operations.
No single customer accounts for more than 10% of the Group's total external revenue.
Segment information
The Group adopted IFRS 8 Operating Segments with effect from 1 July 2008. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group.
Information reported to the Group's Chief Operating Decision Maker (being the Executive Chairman), for the purpose of resource allocation and assessment of division performance is separated into three segments
- Franchisor royalties
- Corporate-operated stores
- Other activities including product and equipment sales
The following is an analysis of the Group's revenues, results from operations and assets:
Revenue
|
|
Six months ended 30 June 2012 |
Six months ended 30 June 2011 |
Year ended 31 December 2011 |
|
|
$ |
$ |
$ |
|
|
Unaudited |
Unaudited |
Audited |
Royalties from franchisees |
|
2,270,088 |
2,103,582 |
4,131,459 |
Corporate-operated Stores |
|
716,640 |
660,182 |
1,367,645 |
Other activities |
|
275,440 |
610,699 |
859,168 |
Total |
|
3,262,168 |
3,374,463 |
6,358,272 |
Profit/(Loss) before tax |
|
Six months ended 30 June 2012 |
Six months ended 30 June 2011 |
Year ended 31 December 2011 |
|
|||
|
|
$ |
$ |
$ |
|
|||
|
|
Unaudited |
Unaudited |
Audited |
|
|||
Royalties from franchisees |
|
870,836 |
829,661 |
883,051 |
|
|||
Corporate-operated Stores |
|
37,217 |
(33,193) |
(105,164) |
|
|||
Other activities |
|
(140,055) |
(430,877) |
(243,785) |
|
|||
Unallocated head office costs |
|
(311,516) |
(222,118) |
(731,145) |
|
|||
Total |
|
456,482 |
143,473 |
(197,043) |
|
|||
|
|
|
|
|
||||
Assets |
|
Six months ended 30 June 2012 |
Six months ended 30 June 2011 |
Year ended 31 December 2011 |
||||
|
|
$ |
$ |
$ |
||||
|
|
Unaudited |
Unaudited |
Audited |
||||
Royalties from franchisees |
|
6,111,300 |
5,484,173 |
5,157,602 |
||||
Corporate-operated Stores |
|
264,793 |
378,245 |
300,424 |
||||
Other activities |
|
1,646,811 |
2,306,963 |
1,979,656 |
||||
Total |
|
8,022,904 |
8,169,381 |
7,437,682 |
||||
For the purpose of monitoring segmental performance, no liabilities are reported to the Group's Chief Operating Decision Maker.
Geographic information
Total revenue
Total revenue from activities by geographical area is detailed below:
Revenue by geography
|
|
Six months ended 30 June 2011 |
Six months ended 30 June 2011 |
Year ended 31 December 2011 |
|
|
$ |
$ |
$ |
|
|
Unaudited |
Unaudited |
Audited |
US |
|
3,138,251 |
2,993,461 |
5,856,369 |
International |
|
123,917 |
381,002 |
501,903 |
Total |
|
3,262,168 |
3,374,463 |
6,358,272 |
Revenue from franchisor activities by geographical area is detailed below.
Royalties from franchisees
|
|
Six months ended 30 June 2011 |
Six months ended 30 June 2011 |
Year ended 31 December 2010 |
|
|
$ |
$ |
$ |
|
|
Unaudited |
Unaudited |
Audited |
US |
|
2,152,564 |
1,990,861 |
3,882,459 |
International |
|
117,524 |
112,721 |
249,000 |
Total |
|
2,270,088 |
2,103,582 |
4,131,459 |
5 Earnings per share
The earnings per share has been calculated using the profit for the period and the weighted average number of ordinary shares outstanding during the period, as follows:
|
|
Six months ended 30 June 2011 |
Six months ended 30 June 2011 |
Year ended 31 December 2011 |
|
|
$ |
$ |
$ |
|
|
Unaudited |
Unaudited |
Audited |
Earnings/(loss) attributable to shareholders of the Company ($) |
|
275,138 |
149,405 |
(427,158) |
Weighted average number of ordinary shares |
|
9,604,417 |
9,604,417 |
9,604,417 |
Earnings/(loss) per share (cents) |
|
2.86 |
1.56 |
(4.5) |
Diluted earnings/(loss) per share (cents) |
|
2.78 |
1.51 |
(4.5) |
The Company issued no share options in the six months to 30 June 2012 (six months to 30 June 2011: nil). For the purposes of the diluted loss per share the weighted average number of shares in issue and to be issued, allowing for the exercise of the share options is 9,898,085. The diluted loss per share has been kept the same as the basic loss per share as the conversion of share options decreases the basic loss per share, thus being anti-dilutive.
6 Notes to the statement of cash flows
|
|
Six months ended 30 June 2011 |
Six months ended 30 June 2011 |
Year ended 31 December 2010 |
|
|
$ |
$ |
$ |
|
|
Unaudited |
Unaudited |
Audited |
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Profit/(Loss) before interest and taxation |
|
573,620 |
296,215 |
98,727 |
Adjustments for: |
|
|
|
|
Depreciation of plant and equipment |
|
9,884 |
29,983 |
45,414 |
Amortisation of intangible assets |
|
131,732 |
132,031 |
264,061 |
Impairment |
|
- |
|
75,000 |
Gain on disposal of fixed asset |
|
- |
- |
(300) |
Share based payments |
|
15,240 |
12,561 |
36,643 |
|
|
|
|
|
Operating cash flows before movements in working capital |
|
730,476 |
470,790 |
519,545 |
(Increase)/Decrease in inventories |
|
(19,321) |
137,772 |
150,779 |
(Increase)/Decrease in trade and other receivables |
|
(627,843) |
(135,543) |
59,594 |
Increase/(Decrease) in trade and other payables |
|
331,799 |
(150,279) |
(2,978) |
|
|
|
|
|
Cash generated by operations |
|
415,111 |
322,740 |
726,940 |
Income taxes |
|
- |
- |
(73,709) |
Net cash generated from operating activities |
|
415,111 |
322,740 |
653,231 |
7 Publication of announcement and the Interim Results
A copy of this announcement will be available at the Company's registered office (Hexagon Business Centre, Hexagon House, Station Lane, Witney, Oxfordshire, OX28 4BN) 14 days from the date of this announcement and on its website - www.waterintelligence.co.uk.
This announcement is not being sent to shareholders. The Interim Results will be posted to shareholders shortly and will be made available on the website.