Water Intelligence (WATR) H2 2023 earnings summary

Executive summary

• Achieved 7% revenue growth to $76 million for 2023, with adjusted EBITDA up 9% to $13.4 million and statutory profit before tax up 13% to $6.2 million compared to 2022.

• EPS increased 23% to 25.3 cents (basic) and 29% to 24.7 cents (diluted) year-over-year.

• Maintained a strong balance sheet with $15.8 million in cash and a net debt to adjusted EBITDA ratio of 0.53 at year-end.

• Continued multinational expansion and investment in proprietary technology and new service offerings.

Financial highlights

• Group revenue rose 7% to $76 million (2022: $71.3 million).

• Adjusted EBITDA grew 9% to $13.4 million (2022: $12.4 million); adjusted PBT up 12% to $8.7 million.

• Statutory profit before tax increased 13% to $6.2 million; statutory EBITDA up 7% to $11.8 million.

• Operating cash flows (EBITDA) increased 6% to $11.8 million.

• Five-year CAGR (2018–2023): +24% revenue, +29% profit before tax.

Outlook and guidance

• Confident in continued growth trajectory, supported by a strong cash position and diversified operations.

• New proprietary products (LeakVue 2, Pulse, Leak Survey 1, VersaLiner) to be rolled out in 2024–2025.

• Expansion of franchise and corporate locations, with new training center and technology investments.

• Monitoring inflation, interest rates, and macroeconomic risks for 2024–2025.