Shares in minimally-invasive leak detection water company Water Intelligence (WATR:AIM) leapt 9% to 883.5p after saying first quarter revenues grew 38% to $11.4 million, extending a strong finish to 2020.
This is a strong start to the new financial year and suggests the company is well ahead of consensus full year expectations for revenues to grow 13% to $43 million, according to data provider Refinitv.
GROWTH TRAJECTORY CONTINUES
Pre-tax profit adjusted for share-based payments and amortisation grew by 115% to $1.78 million, which builds on the 78% growth in statutory pre-tax profits for 2020.
Over the last five years pre-tax profit and revenues have grown at compound annual growth rates of 53% and 33% respectively.
Growth was achieved across all the business units with the core American Leak Detection seeing revenues up 36% to $10.2 million. Water Intelligence International saw revenue growth of 63% to $1.3 million.
The company ended the quarter with a strong balance sheet showing cash of $9.46 million and net borrowings of $0.5 million.
TAILWIND
US President Joe Biden’s anticipated $100 billion investment in water infrastructure is expected to provide a strong tailwind for the company and increase demand for its water and wastewater solutions.
Executive chairman Dr. Patrick DeSouza commented, ‘As our profits increase, we are committed to reinvest not only in more execution capabilities for current market capture but also in leading technologies that reinforce our brand and our growth throughout this decade.’
