(Alliance News) - Water Intelligence PLC said Wednesday its revenue in the first half was ahead of market expectations and its profit was "comfortably" in line with expectations.
The water leak detection firm said it performed "strongly" in the half. "Global demand for water infrastructure products and services remains strong," the company added.
Water Intelligence expects its revenue to grow 34% in the half-year to USD15.9 million. Pretax profit is guided to increase 20% to USD1.5 million.
"Global market demand for solutions to water loss from leakage is strong and only growing. We are well-positioned and continue to deliver on our articulated plan," said Executive Chair Patrick DeSouza. "First half results show continued strong growth at both top and bottom lines versus the first half in 2018. Our results are consistent with the strong compounded annual growth since 2014 that we discussed in our annual report. Most of the company's sales are in the US and in dollars offering safe haven from any impact of Brexit."
DeSouza continued: "Importantly, our franchise royalty income continues to consistently grow, fuelled by our business-to-business insurance channel and despite continued re-acquisitions of franchises which reduce the pool of royalty income. Corporate operations after franchise re-acquisitions are still unlocking significant shareholder value."
The company said its core American Leak Detection franchise royalties grew 4% to USD3.4 million. Water Intelligence said this implies about USD45 million in third party sales.
Franchise-related activities - including insurance, equipment and franchise sales - grew 60% to USD4.1 million in the first half.
"Finally, our technology reinvestment to build our brand profile as an innovation company continues to progress. We are on a mission to transform the water infrastructure services market around the world and seek to lead the Insuretech movement," added DeSouza.
Shares in Water Intelligence were 0.2% lower in London on Wednesday at 330.00 pence each.
Water Intel. (WATR)