Water Intelligence continues to grow margins
The Group expanded globally by renewing contracts in Australia and securing new EU municipal contracts. Plans to enhance US operations through Salesforce implementation aim to improve scalability and efficiency, projecting additional national insurance contracts in 2024.
Despite inflation and increased interest rates, both EBITDA and PBT margins improved, showcasing the Group's adaptability. To support growth, a cutting-edge training and R&D facility in Connecticut was launched, addressing market demand while serving as an innovation showcase.
Financially, Water Intelligence saw a 6% revenue increase to $64.4 million. Franchise-related activities and international corporate sales notably rose, with Statutory PBT reaching $6.8 million, and adjusted PBT and EBITDA surging by 14% and 9% respectively.
The company holds $17.2 million in cash and equivalents. With manageable debt positions and a low leverage ratio, Water Intelligence has financial flexibility for potential acquisitions.
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Water Intelligence provides leak detection and repair solutions, mainly operating in the US, UK Australia and Canada. Water Intelligence operates through two wholly-owned subsidiaries, American Leak Detection and Water Intelligence International.
Water Intelligence has hit a number of notable milestones in the period, including the successful reacquisition of its franchise in West Covina, California, for $1.5m, with the development under the umbrella of the company's American Leak Detection subsidiary. The deal reinforces the group's strategy of establishing regional corporate hubs in the US that fuel growth in adjacent corporate and franchise locations. Shortly before, in February, Water Intelligence also announced it had reacquired its Nashville, Tennessee franchise.
In September, Water Intelligence said it was gaining increasing traction with its newly commercialised products. Pulse, an acoustic tool for sewer line blockage detection, stands out by already hitting over $0.5 million in sales with UK water companies. LS1, an acoustic device for efficient urban water infrastructure surveys and IntelliDitch, which is a liner product that prevents water loss in concrete or earthen channels, have generated a combined $0.2 million in initial sales.
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