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Water Intelligence profits jump as revenue beats expectations
30th Sep 2019 09:11
(Sharecast News) - Water Intelligence on Monday reported a jump in interim profits as revenue climbed ahead of market expectations on the back of growth from franchise related activities and its US operations.
The leak detection specialist booked a profit before tax of $1.5m for the six months ended 30 June, an increase of 20% compared to the same period last year, as revenue beat expectations to rise by 34% to $15.9m.
The leap in revenue came as revenue from US corporate operated locations jumped by 56% to reach $7.0m as Water Intelligence International accelerated municipal work in-country, while franchise related activities sales surged by 60% to $4.1m.
Meanwhile, administrative expenses were up by 31% at $10.6m as the company increased investment during the period in order to hire new staff to support new contracts, complete four franchise reacquisitions and develop new technology.
This technology includes the Orca product, which the AIM traded company expected to roll out in the US during the fourth quarter, and improvements to the company website and online sales.
Patrick DeSouza, executive chairman of Water Intelligence, said: "Q3 has also started well. The group has delivered strong EPS growth while still making investments to sustain our growth trajectory over the next three to five years.
"Given the strong global market demand for water and infrastructure services, we remain confident about the future and our ambition to transform the water infrastructure services sector and deliver real value to our shareholders."
Water Intelligence shares were up 6.11% at 278.00p at 0911 BST.
The leak detection specialist booked a profit before tax of $1.5m for the six months ended 30 June, an increase of 20% compared to the same period last year, as revenue beat expectations to rise by 34% to $15.9m.
The leap in revenue came as revenue from US corporate operated locations jumped by 56% to reach $7.0m as Water Intelligence International accelerated municipal work in-country, while franchise related activities sales surged by 60% to $4.1m.
Meanwhile, administrative expenses were up by 31% at $10.6m as the company increased investment during the period in order to hire new staff to support new contracts, complete four franchise reacquisitions and develop new technology.
This technology includes the Orca product, which the AIM traded company expected to roll out in the US during the fourth quarter, and improvements to the company website and online sales.
Patrick DeSouza, executive chairman of Water Intelligence, said: "Q3 has also started well. The group has delivered strong EPS growth while still making investments to sustain our growth trajectory over the next three to five years.
"Given the strong global market demand for water and infrastructure services, we remain confident about the future and our ambition to transform the water infrastructure services sector and deliver real value to our shareholders."
Water Intelligence shares were up 6.11% at 278.00p at 0911 BST.