Water Intelligence grows revenue while reported pretax profit declines

Water Intelligence ($WATR-LSE) increased first-half revenue 7% to $48.2 million, with international corporate sales rising 40% to $9.5 million. Adjusted EBITDA advanced 6% to $9.8 million and adjusted pretax profit rose 4% to $5.9 million. Statutory pretax profit, however, fell 22% to $3.3 million, and statutory EBITDA declined to $7.5 million from $8.2 million.

The leak-detection and repair group also launched a preventive-maintenance business, building on paid pilots and water-monitoring partnerships. This could broaden its service relationships beyond individual leak incidents, but no guaranteed revenue was disclosed for the initiative. Franchise royalties fell 2%, partly because reacquired franchises no longer contribute to the same royalty pool. The difference between adjusted and statutory earnings is important when assessing profitability, and neither the new service offering nor reported sales growth removes that distinction.

Sources:

• Company RNS reproduced by Investegate