video interview Waterlogic looking ahead to 'a year of growth' across all divisions Jeremy Ben-David, chief executive of Waterlogic (LON:WTL), tells Proactiveinvestors that 2013 has been a year of both organic and acquisitive growth and anticipates that this year will continue to see more of the same across all divisions. Jeremy says that the Australian business is now fully integrated and thel benefits, which were deferred from last year, will be included in the first set of accounts produced in this fiscal year's accounts http://tinyurl.com/ku6o9lu
anyone have any views about whether this might see a turn round ... been following it for a while and it just keeps falling ....
4 Nov '13
video interview Waterlogic eyeing developing markets with new technology Waterlogic (LON:WTL) is the leader in the "point of use" water cooler market, with a technology that is set to replace the old business model of chunky water bottles delivered by a man in a van. It is probably the only vertically integrated operator in the water cooler business, manufacturing its products in its fully-owned plant in China and then selling the product to its subsidiaries or distributors round the world, but predominantly (80%) Europe and the USA. Developing markets are set to become a major target following the development of the company's Firewall technology, which uses ultra-violet technology to purify at the point at which the water is dispensed. http://tinyurl.com/p4363ed
30 Oct '13
It is interested in expanding its footprint on the West Coast of the US, where last year it acquired three companies, and in Germany plus possibly France. On the potential of the consumer business, Ben-David is still upbeat, although recent experience has made him a little more circumspect with his analysis of the opportunity. “We had the idea of going into the consumer market and came under pressure to make forecasts for how long it would take to get products out. Of course, when you’re partnering with major international companies you can’t always dictate the timetable,” said the Waterlogic CEO. “Developing the technology and finding the customers; it all takes time, but we know that now, and are pleased to be rolling out products to consumers in Japan, Turkey, Russia and Italy.”
30 Oct '13
The company used to boast of an addressable market of around US$2bn a year, which was based on commercial sales to businesses in the US and Europe. However, its market has increased to US$14bn since the development of its Firewall products aimed at consumers as well as businesses, using ultra-violet technology to purify at the point at which the water is dispensed. Firewall eliminates the chance of contamination from the nozzle from which the water is dispensed and is a huge leap forward in technology that creates two massive opportunities. The first is the consumer market, and the group has developed a range of models for the home that are being sold by partners such as Indesit Hotpoint. It will market under the Waterlogic name in Japan through its distribution partner, Alconix. The Firewall technology also has a ready market in emerging nations such as India, where water quality is still an issue, and the company has a distribution agreement with Eureka Forbes The competition for the company is still traditional bottled water, where the group has a significant edge. There are companies that install point of use units, but none have the economies of vertical integration provided by Waterlogic’s manufacturing arm. And it is this, allied to the ability to reduce central costs such as marketing spend, which provides an instant win when Waterlogic makes bolt-on acquisitions. The cost of sales drops, and profits instantly rise. Its largest deal to date was done in Australia, where it bought Cool Clear Water, a company that turns over A$16.9mln and made EBITDA of A$9.3mln. It acquired Culligan as part of the same deal, sewing up a further A$6.9mln of revenues. The total cost was A$60mln, though this has given the group a fairly significant base in Australia. It means the group is carrying net debt of around US$35mln, although it still has headroom with its lenders and cash of US$13.8mln that will finance other, probably more modest, bolt-ons to the business.
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