Water Intelligence (LON: WATR) reported a 22% fall in statutory pre-tax profit to $3.3m for the six months to the 30th of June, even as revenue rose 7% to $48.2m. The AIM-listed leak detection and repair group, which earns mostly in the US through American Leak Detection, launched a preventive-maintenance business alongside today’s unaudited interim results.
Adjusted EBITDA, which is profit before interest, tax and depreciation plus company-chosen add-backs, rose 6% to $9.8m. Margins slipped, with the adjusted EBITDA margin at 20% against 21%, which the Executive Chairman put down to higher materials and fuel costs.
The 2025 figures were restated after that year’s audit.
| US$m | H1 2026 | H1 2025 (restated) |
|---|---|---|
| Revenue | 48.2 | 45.0 |
| Adjusted EBITDA | 9.8 | 9.3 |
| Adjusted pre-tax profit | 5.9 | 5.7 |
| Statutory pre-tax profit | 3.3 | 4.2 |
Adjusted measures edged up while the statutory figure fell. Dr. Patrick DeSouza, the Executive Chairman, said the drop reflected legal and training expenses for setting up monitoring services and subscription offerings.
Growth came from outside the core US stores. International corporate sales rose 40% to $9.5m, helped by an Irish acquisition, and franchise related sales climbed 15% to $5.4m. US corporate sales slipped 1% to $30.2m and franchise royalties fell 2%.
Cash was weaker. Net cash from operating activities roughly halved to $3.41m from $6.71m, and trade receivables rose. The company expects $4.2m of those receivables to be paid in the second half. It put net debt at 1.29 times adjusted EBITDA.
The new business, preventive maintenance, means installing leak sensors and selling subscription aftercare. American Leak Detection is white-labelling the StreamLabs and Bluebot monitoring devices. The Chairman referred to paid pilots with strategic customers in the third quarter, with scale-up due to start in the fourth.
These outcomes from paid pilots validate our confidence in the PM growth strategy and enable us to start scaling up in Q4 with financial milestones around which we can forecast.
Dr. Patrick DeSouza, Executive Chairman, Water Intelligence
The announcement carried no numeric outlook and no dividend. The company said additional measures, such as devices sold, will be introduced for 2027.