Water Intelligence PLC Sale of New Franchise in Georgia (0406V)
04 April 2019 - 5:00PM
UK Regulatory
TIDMWATR
RNS Number : 0406V
Water Intelligence PLC
04 April 2019
Water Intelligence plc
Sale of New Franchise in Georgia
Water Intelligence plc (AIM: WATR.L), a leading multinational
provider of precision, minimally-invasive leak detection and
remediation solutions for both potable and non-potable water is
pleased to announce the sale of franchise territory covering the
middle and southern part of the state of Georgia in the United
States.
The purchase price for the territory is $168,750. The territory
represents the previously undeveloped southern half of the South
Atlanta franchise that Water Intelligence reacquired in early March
this year. The new franchise owner has experience with the American
Leak Detection franchise system and is expected to put trucks on
the road immediately. Importantly, the new owner also has
professional experience with sewer and wastewater operations. He
will also be helpful in cross-selling municipal solutions from
Water Intelligence International.
Today's sale of a franchise territory optimizes the commercial
exploitation of the South Atlanta / Southern Georgia region and
accelerates the unlocking of shareholder value. First, today's sale
of the South Georgia territory does not cannibalize the sales of
the newly launched South Atlanta corporate territory. We still
expect the baseline of $320,000 of 2018 sales for South Atlanta to
grow during 2019; now, however, the effective purchase price for
the reacquisition has dropped due to the sale of territory. Second,
the sale of a new franchise for undeveloped Southern Georgia
enables royalty income to supplement South Atlanta corporate
revenue and earnings and thus fully exploit the entire
geography.
Strategically, the South Atlanta / Southern Georgia transactions
can be a model for optimization of franchise territory across the
US enabling more sales coverage in support of our national channels
and incentivizing ever greater collaboration among corporate and
franchise operations towards execution of our growth plan.
Dr. Patrick DeSouza, Executive Chairman, commented: "As
previously highlighted, the first quarter was very productive in
reinforcing last year's strong revenue and profits trajectory.
Today's sale is fully accretive to revenue and earnings. With the
recent announcement of the reacquisition of Orlando and now the
sale of Georgia territory, we believe that the second quarter will
continue along the same exciting path."
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information about this announcement please
contact:
Water Intelligence plc
Patrick DeSouza, Executive Chairman Tel: +1 203 654 5426
Adrian Hargrave, VP Corporate Tel: +44 (0) 7775 701 838
Development
WH Ireland Limited - NOMAD & Tel: +44 (0) 207 220 1666
Broker
Adrian Hadden
James Sinclair-Ford
Matthew Chan
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END
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