Shares in minimally invasive water detection company Water Intelligence (WATR:AIM) gained 4% to 870p after it announced two acquisitions and the company noted it had finished the first half in ‘strong fashion’.
The shares are up 63% over the last six months, boosted by strong earnings upgrades with consensus estimates rising around 48% according to data provider Refinitiv.
Water Intelligence continued its recent trend of reacquiring existing franchisees with the purchase of its American Leak Detection franchisee in Reno, Nevada for $0.25 million, roughly one times revenues.
The company said the move would strengthen its western US presence and links its innovation centres in Silicon Valley and Seattle. The owner was an early technology adopter and regularly tested new technologies for the group including its proprietary sewer diagnostic tool.
Reno experienced extreme disruption from restrictions in 2020 due to its significant casino presence. With additional working capital and the end of restrictions, the location is expected to achieve strong growth.
CORPORATE ACQUISITION
The company also purchased PlumbRight Services for $0.7 million which extends its plumbing services capabilities in the fast-growing Louisville, Kentucky region.
The purchase will allow the Louisville team to take on larger scale repair jobs as follow-on sales to the core leak detection business for existing and municipal customers.
Executive Chairman, Dr. Patrick DeSouza commented: ‘We are now completing 2H executing the same formula for success. Today's acquisitions will fuel growth.’
The company appointed John Spenard as chief people officer to strengthen the management team. Spenard will be responsible for adding personnel to meet the growth in demand as well as integrating personnel from acquisitions.
