Water Intelligence (AIM: WATR.L) has announced the reacquisition of its franchise operation in Melbourne, Australia within the Group's American Leak Detection subsidiary ("ALD").
The multinational water solution provider said the acquisition materialised amid a strong demand for water conservation across residential, commercial and municipal applications.
The purchase price for the reacquisition, which includes all assets to conduct operations including trucks and equipment etc., is AUD$1.77 million.
The group said Australia is an important geography for its strategic growth plan and that Melbourne is ‘a significant reacquisition’ since it complements its Sydney corporate base.
Between Melbourne and Sydney, Water Intelligence said it can better support growth of its existing franchise locations in the eastern half of Australia and that it intends to expand operations further west to Adelaide and Perth, both of which remain untapped regions.
Shares in Water Intelligence have traded strongly over the past three months, rising from a low of 260p in June and opening at 325p this morning following the announcement.
Despite the impact of COVID-19 across Australia, the Group said it continues to operate in Australia as an "essential service" provider to support water and wastewater infrastructure.
Over the past twelve months, which includes six months of Covid-impacted results, the Melbourne operation generated AUD$1.29 million in sales and AUD$0.27 million in profits.
Today's reacquisition continues Water Intelligence’s drive to establish regional centers to integrate corporate and franchise operations across its geographies and follows similar strategic reacquisitions since the start of the second quarter across several US states.
"With our growth-focused execution, we continue to distinguish ourselves among companies operating in the Covid-19 marketplace,” said Executive Chairman, Dr. Patrick DeSouza.
He said, “Our opportunity for market capture is global and water infrastructure challenges need to be addressed whether in good times or bad. Melbourne continues our effort to drive growth across all our current geographies: US, UK, Canada and Australia.”
“Our second half continues in strong fashion and we are on track with our 2020 plan,” he added.
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