Water Intelligence International Wins

RNS Number : 0205X

Water Intelligence PLC

25 April 2019

 

Water Intelligence plc (the "Group")

Water Intelligence International Wins

Water Intelligence plc (AIM: WATR.L), a leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water is pleased to announce a series of business development launches for Q2 by UK-based Water Intelligence International Limited (WII) - the Group's subsidiary focused on municipal solutions.  These wins - in the US and Canada - point to a strong first half of 2019 and beyond for WII.  The wins underscore the growth synergies from cross-selling solutions with American Leak Detection (ALD) - the Group's core subsidiary focused on water leak solutions for residential and business-to-business customers such as insurance companies. These results are firmly in line with the Group's stated strategy to layer-in a municipal business line in the US, which had previously been passed on by ALD.  The transactions add to the 2019 growth trajectory advanced by the Group's strong first quarter as discussed in previous releases.

WII Objectives.   In Q4 2016 the Group acquired UK-based WII to complement US-headquartered ALD and offer municipal solutions in order to capture a share of the anticipated rise in infrastructure spending worldwide.  The Group envisioned WII would directly acquire utility customers in the UK and EU and cross-sell its solutions in the US and other countries leveraging the substantial market presence and reputation of ALD.  As indicated in our 2018 Trading Update and as will be evidenced in the Group's upcoming release of its audited 2018 Accounts, WII has exceeded the Group's sales expectations, including leading the way in the development of new proprietary technology for sewer diagnostics. Importantly, WII has also helped drive the growth of the Group's Sydney corporate location, which was reacquired in 2016 from a former ALD franchisee, through previously announced wins at Sydney Water and Hunter Water.

New WII Wins.  The Group is pleased to announce that five contracts in the US and Canada worth at least $300,000 will be started between April 29 and June 11.  These contracts leverage ALD market presence and will be executed by both US and UK personnel.  WII personnel will also assist in training additional staff in the US and Canada during 2019 and beyond, enabling the Group to execute a greater range of contracts in parallel.  Two of the contracts (Syracuse, New York and Ontario, Canada) will take a page from the Sydney/Australia development playbook and drive growth in upstate New York and eastern Canada after Q1's reacquisition of ALD's Ontario franchise. Another contract - Flint, Michigan - because of that city's public controversy with lead in the water, offers the Group an incredible opportunity to take a brand leadership position in working with municipalities and communities on a range of value-add water infrastructure solutions.  WII's technology leadership will also be highlighted during this period as it begins to deploy its new proprietary sewer technology at UK municipal sites.

Dr. Patrick DeSouza, Executive Chairman, commented:  "ALD-led wins during Q1 produced a strong start. These Q2 wins led by WII will add to 1H momentum and help build an exciting story for 2019.  Steve Gayler, our leader at WII has the operational experience and drive to enable WII to exceed our expectations. The reputation that WII is developing for its technology and execution leadership will produce increasing levels of opportunity for the Group"

For further information about this announcement please contact:

Water Intelligence plc
Patrick DeSouza, Executive Chairman Adrian Hargrave, VP Corporate Development	Tel: [phone] Tel: [phone]
WH Ireland Limited - NOMAD & Broker	Tel: [phone]
Adrian Hadden
James Sinclair-Ford
Matthew Chan

 

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