29 sep 25   water intelligence - interim results water intelligence plc | watr | 275 5.0 1.9% | mkt cap: 53.1m    rns number : 1427b water intelligence plc 29 september 2025       water intelligence plc (aim: watr.l) interim results: stronger growth; competitive differentiation   water intelligence plc (aim: watr.l) (the "group" or "water intelligence"), a leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water is pleased to provide its unaudited interim results for the period ended 30 june 2025.   results are in-line with market expectations with continued revenue and ebitda growth with momentum for 2h from a strong 2q.  the group's focus is two-fold. first, further competitive differentiation and margin improvement driven by its technology-enabled services platform and second, going to market with its strategic streamlabs partnership to deliver accelerated organic revenue growth.    financial highlights ·    revenue increased by 8% to $45 million (1h 2024: $41.5 million) o  franchise royalty income decreased by 10% to $3.21 million (1h 2024: $3.55 million) as a result of franchise reacquisitions reducing the pool of royalty income o  franchise related sales decreased 15% to $4.7 million (1h 2024: $5.5 million) as a result of fewer franchisees o  group corporate store sales increased 13% to $37.1 million (1h 2024: $32.4 million) § us corporate sales grew 7% to $30.3 million (1h 2024: $28.3 million) § international corporate sales grew 64% to $6.8 million (1h 2024: $4.1 million)  ·    pbt adjusted* increased by 8% to $5.7 million (1h 2024 $5.26 million) ·    ebitda adjusted** increased by 16% to $9.2 million (1h 2024: $8.0 million) ·    statutory profit before tax decreased by 11% to $4.2 million (1h 2024: $4.7 million) negatively affected by ifrs 3 treatment of profits from irish acquisition as remuneration expense due to earn-out structure and no inclusion of gain from las vegas acquisition*** ·    statutory ebitda increased by 4% to $8.2 million (1h 2024: $7.8 million) also negatively affected by ifrs 3 treatment of profits from irish acquisition as remuneration expense due to earn-out structure and no inclusion of gain from las vegas acquisition*** ·    pbt margin adjusted* remained the same at 13% (1h 2024: 13%) ·    ebitda margin adjusted** increased to 20% (1h 2024: 19%) ·    eps basic adjusted* increased by 8% to 22.9 cents (1h 2024: 21.2 cents) ·    eps fully diluted adjusted* increased by 8% to 22.4 cents (1h 2024: 20.7 cents)  ·    cash and equivalents at 30 june of $8.42 million o  net cash of ($14.1) million (cash minus bank borrowings) o  net debt (including both bank debt and deferred acquisition payments) to ebitda adjusted** ratio: 1.24 *pbt adjusted (adjusted for amortisation, share based payments and non-core costs/gains including ifrs treatment of earn-out gains) **ebitda adjusted (adjusted for share-based payments and non-core costs/gains including ifrs treatment of earn-out gains) *** see 2024 accounts, strategic report, table (vii) for further explanation; irish acquisition occurred in 2h 2024 so 1h 2024 interims did not have conforming treatment of las vegas gain. today's report makes all adjustments for comparisons.     corporate development  / capital allocation ·    strategic partnership with streamlabs. inc., a chubb company for "white label" resale of high quality water monitoring products by the group's core american leak detection subsidiary ("ald"). ald is now able to provide its customers a full suite of products and services and a subscription model. ·    repurchase of group shares: 60,000 subsequent to period ·    repurchase of group shares: 88,000 for total year to date of 148,000    ·    reacquisition of west georgia franchise to create regional corporate hub after integration with prior franchise reacquisitions in area dr. patrick desouza, executive chairman of water intelligence, commented:   "we are enthusiastically executing our 2025-26 plan to drive accelerated organic growth and to realize gains from investments previously made, such as our salesforce operating platform.  we have momentum from a strong 2q.  over the next couple of quarters, we will be publishing new kpis reflecting such gains.   our technology enabled services model positions us well.  preventive maintenance solutions for aging water infrastructure, as opposed to restoration after an unattended to water leak, is increasingly  sought after by the residential, commercial and municipal customers as the price of water continues to rise.  our streamlabs partnership executed during 1h enables us to provide end-to-end products and services from monitoring to leak detection and repair to aftercare and to help our customers via a subscription model to get ahead of any potential problem.    we are now the only nation-wide company in the us in a fragmented market for service providers that can provide the end-to-end set of preventive maintenance solutions directly. moreover, with our latest proprietary leak detection equipment to be unveiled at our forthcoming annual ald convention 22-25th of october, we will be unmatched and this positions us well for a strong 2026.   while building out our multinational platform and continuing to meet expectations in terms of profitability, we have preserved a strong balance sheet and credit capacity.  as a result, we have the resources both to be opportunistic through acquisitions but also to provide some liquidity for shareholders through share repurchases.  we are confident in our ability to deliver results in the near-term."   the information contained within this announcement is deemed to constitute inside information as stipulated under the retained eu law version of the market abuse regulation (eu) no. 596/2014 (the "uk mar") which is part of uk law by virtue of the european union (withdrawal) act 2018. the information is disclosed in accordance with the company's obligations under article 17 of the uk mar. upon the publication of this announcement, this inside information is now considered to be in the public domain.     enquiries:   water intelligence plc laura bass, director, strategic finance                                                                  tel: tel: +1 203 584-8240   grant thornton uk llp - nominated adviser                                                    tel: +44 (0) 20 7383 5100 philip secrett harrison clarke ciara donnelly   canaccord genuity limited - joint broker                                                           tel: + 44 (0)207 523 8000 simon bridges harry gooden elizabeth halley-stott   dowgate capital ltd - joint broker                                                                        tel: +44 (0)20 3903 7715     chairman's statement   during 1h, we began to execute against our next 50 growth plan that we launched in october 2024 at the annual conference for our core business - american leak detection (ald).  as discussed below, we have started well in delivering and have momentum for 2h based on a strong 2q. the group's vision from its beginnings on aim has always been to transform ald's unique operating footprint that provides technology-driven, water leak detection and repair services to customers all across the united states into a scalable multinational "one stop shop."  we have a positive indicator for our scalability as ebitda adjusted margins have moved to 20%; moreover, we have room for further improvements from  our fast growing water intelligence international business (+64% 1h 2025 vs. 1h 2024) as we extend the platform globally to handle all water infrastructure needs of residential, commercial and municipal customers in a seamless way.    starting with ald's 1h performance, we invested in the final piece of the platform vision during 1h with our streamlabs partnership to introduce wireless monitoring capabilities. we have tested the new offering during 1h in certain pilot cities with positive customer reaction.  in addition, pleasingly we have also observed different indicators that prior investments in the platform are delivering efficiencies and scale.  now, as we approach our 2025 ald conference in mid-october, we will be updating key performance indicators (kpis) reflecting our progress for a new round of accelerated growth built upon today's base of approximately $175 million annual network sales.     our new kpis will focus on three key concepts - preventive maintenance, technology enabled solutions platform and the dallas operating template.   all three reinforce our core technology-driven, minimally-invasive, leak detection value proposition and create a coherent economic model that is scalable. importantly, we believe we are the only nationwide provider in the us that can bring such a comprehensive technology profile to bear on leak detection problems in water infrastructure.  as outlined below, our new kpis are geared to show the yield from our investments.   first, as a matter of competitive strategy, market demand for end-to-end preventive maintenance solutions for water infrastructure  - whether residential, commercial or municipal - is rapidly growing.  customers - whether homeowners, property management or insurance companies -  are recognizing the need to be proactive rather than wait for serious losses and greater damages.  the current revolution in data science enables better capture and quantification of  water data to show the return on investment for preventive maintenance. some of the group's collection of proprietary technologies, especially leakvue 2, already leverage such data about water flow to pinpoint leaks.  as a result, our combination of proprietary tools and wireless products, an installed base of household customers across the us and a national services footprint mapped to a national insurance channel structure enable both the collection of first party data and its exploitation for winning competitive differentiation.   over the last six months, we have built out our streamlabs partnership to create further competitive advantage for such a new world of preventive maintenance.  streamlabs, a company owned by chubb insurance, has what we have evaluated to be the highest quality water monitoring product that can provide wireless data alerts of a water leak and an ability to shut-off water flow.  we are pleased that ald is able to "white label" the streamlabs products to our customers and to own dashboards so that we can be a first responder for our customers and seamlessly leverage our proprietary leak detection technology and highly-trained professionals to pin-point leaks, remediate them in minimally-invasive fashion and provide aftercare based on data.  during 1h we have trained our technicians in streamlabs products, set-up proprietary workflow routines in our salesforce operating system and sold streamlabs units in pilot cities.  customer feedback has been outstanding. coincident with our ald convention in october we will be ramping up sales and marketing efforts and developing revenue growth kpis supplementary to our existing offerings.  moreover, the reliability of the streamlabs product reinforces ald's high quality brand and reduces liability risk for false readings unlike other products.   second, over the last several years we have invested in building out a technology enabled solutions (tes) business model so that we could scale efficiently.  our salesforce operating system and various applications from web forms to seeen video moments gather and store data securely in the salesforce cloud to improve leak detection services, the training of technicians and even the care of customers.  we have integrated such data flows from our national insurance channels with our salesforce system and automatically produce service level customer records.  we are now tying together streamlabs monitoring technology to service level agreements from insurance channels such as chubb. in terms of kpis, now that we have various data flows integrated, we can reduce  unnecessary software licenses linked to each of our 150 locations as well as certain administrative headcount since job information is routed directly to technicians and service level reports generated more efficiently.  such efficiencies will underpin further subscription offerings.  ebitda adjusted margins have improved during 1h and we will be developing kpis on operating efficiencies and margin expansion.   third, with respect to the dallas template, as previously discussed, we reacquired during q4 2024 ald's highly successful dallas franchise led by will knell, then appointed will as ceo of ald and are now cloning the dallas unit's operating model - one that has generated significant sales growth and 30% margins - across the other forty-five corporate locations.  during 1h, we started making various changes including the introduction of performance-based incentives used in dallas.  such performance-based incentives include assisting with the sale of streamlabs products.  we will be developing kpis based on corporate store operating efficiencies and additional revenue yield from technician-led sales.  we expect to see corporate store operating margins increase from 2024's yield of 18% to a target level of 22% during 2026 which, if we are successful, should unlock at least $2million of organic profits.  implementing the dallas template will also make future franchise reacquisitions more efficient from the start.   1h financial results.   as described above, 1h was marked by significant investment and management attention to completing a tes platform.   in parallel, the business continued to grow both top-line and bottom-line with added momentum for 2h with a strong 2q.  group revenues grew 8% to $45 million (1h 2024: $41.5 million).   group corporate locations grew 13% to $37.1 million (1h 2024: $32.4 million).   among the corporate locations, us corporate locations grew 7% to $30.3 million (1h 2024: $28.3 million). international corporate locations led by ireland (acquisition) and australia (organic) grew 64% to $6.8 million (1h 2024: $4.1 million).  franchise royalties declined 10% to $3.21 million (1h 2024: $3.55 million) with such decline largely as a result of prior franchise acquisitions which reduced the pool of franchise royalties.  network sales for 1h (both corporate sales and gross sales from franchises from which royalty income is derived) was flat at approximately $90 million.   while we report both statutory and adjusted ebitda and profit before tax, as a result of ifrs 3 treatment of 2h 2024's acquisition in ireland and conforming treatment of a las vegas acquisition, we believe the adjusted numbers are more relevant for comparisons.  with respect to ireland, because of the earn-out structure of the transaction - designed to reduce transition risk - profits are treated as a remuneration expense.  in las vegas, because the former franchise owner did not meet an earnings target as part of his deferred payments, again to minimize risk, the group's gain from non-payment of this liability was excluded from income for year-over-year comparisons.   hence profit before tax adjusted for amortization, share-based payments and non-core costs/gains increased by 8% to $5.7 million (1h 2024 $5.26 million).  ebitda adjusted for share-based payments and non-core costs/gains increased 16% to $9.2 million (1h 2024: $8.0 million).  meanwhile, statutory profit before tax decreased by 11% to $4.2 million (1h 2024: $4.7 million).  statutory ebitda increased by 4% to $8.2 million (1h 2024: $7.8 million).  ebitda adjusted margins increased 20% (1h 2024: 19%); profit before taxes adjusted margins remained the same as 1h 2024 at 13%.   our balance sheet remained strong and under-levered.  the group has sufficient resources to execute its next 50 plan. cash at 30 june was $8.42 million.  the ratio of net debt (including both bank debt and deferred payments from prior acquisitions) to ebitda adjusted was 1.24.    strategic direction.                   the group's focus going forward is on monetizing its investments that underpin its competitive strategy of preventive maintenance.  because of our tes platform, we are uniquely positioned to accelerate revenue growth by selling a suite of products, services and analytic data that provide end-to-end solutions to reduce water loss from leakage because of failing infrastructure whether residential, commercial or municipal.  moreover, given the scalability of our "one stop shop" we can execute such sales more efficiently leading to improved operating margins.  in a fragmented market for solutions providers, our platform approach is valued by customers who want one service provider to seamlessly integrate all needs from wireless monitoring to pinpoint leak detection to minimally invasive repair to continued aftercare..                   our capital allocation policy remains the same:  a priority of feeding organic growth but with an eye toward opportunistic acquisitions (especially franchisees and plumbing) that reinforce our growing operating footprint.  to be sure, we recognize that we are undervalued and have allocated capital to enable liquidity through share repurchases.  year-to-date, we have reacquired 148,000 shares.  we have a strong balance sheet and have the available resources to support our next 50 plan.                   we remain confident about our growth prospects over the coming quarters as we capture data for kpis informing our next 50 plan and, as always, appreciate the support of our shareholders.     interim consolidated statement of comprehensive income for the six months ended 30 june 2024   six months ended 30 june  2025 six months ended 30 june  2024 year ended  31 december 2024  notes $ $ $   unaudited unaudited audited revenue 4 45,025,419 41,525,858 83,291,649      cost of sales  (4,346,322) (4,992,886) (9,795,325)      gross profit  40,679,097 36,532,972 73,496,324 administrative expenses     -       other income  96,780 737,289 974,355 -       gain on bargain purchase  - - 356,464 -       share-based payments  (174,915) (151,138) (379,343) -       amortisation of intangibles  (455,240) (427,026) (854,878) -       other administrative costs  (34,974,440) (31,442,024) (65,941,266)      total administrative expenses  (35,507,815) (31,282,899) (65,844,668)       operating profit  5,171,282 5,250,073 7,651,656      finance income  227,773 186,835 395,729 finance expense  (1,222,090) (731,327) (1,690,900)      profit before tax  4 4,176,965 4,705,581 6,356,485      taxation expense  (1,075,568) (1,412,117) (1,572,490)      profit for the period  3,101,397 3,293,464 4,783,995 attributable to:     equity holders of the parent   3,038,919 3,300,966 4,680,130 non-controlling interests   62,478 (7,502) 103,865     3,101,397 3,293,464 4,783,995       other comprehensive income     exchange differences arising on translation of foreign operations  292,711 (103,159)   (173,851)   cash flow hedge movement not subsequently reclassified to the p&l  (485,817) 11,765   (128,528)   fair value adjustment on listed equity investment (net of deferred tax)  (32,186) (173,597) 215,558 total comprehensive income for the period    2,876,105   3,028,473  4,697,174       earnings per share  cents cents cents basic 5 17.5 19.0 26.9 diluted 5 17.1 18.5 26.3      consolidated statement of financial position as at 30 june 2025       at 30 june 2025 at 30 june 2024 at 31 december 2024  notes $ $ $   unaudited unaudited audited assets     non-current assets     goodwill  68,928,861 52,473,874 64,996,704 listed equity investment  255,558 237,304 292,067 other intangible assets  13,916,811 8,959,620 11,632,065 interest rate swap  6,007 288,030 491,824 property, plant and equipment  15,121,544 12,883,938 12,991,015 trade and other receivables  288,694 297,707 250,500   98,517,475 75,140,473 90,654,175      current assets     inventories  882,747 870,648 930,439 trade and other receivables  13,182,487 11,737,242 10,934,817 investments  4,207,544 4,446,570 6,683,089 cash and cash equivalents  4,211,873 6,665,581 5,452,479   22,484,651 23,720,041 24,000,824 total assets 4 121,002,127 98,860,514 114,654,999      equity and liabilities     equity attributable to holders of the parent     share capital 6 143,192 143,192 143,192 share premium 6 35,417,072 35,226,469 35,417,072 shares held in treasury 6 (1,149,538) (752,140) (883,549) merger reserve   1,001,150 1,001,150 1,001,150 share based payment reserve  2,997,281 2,405,485 2,822,366 foreign exchange reserve  (1,186,178) (1,408,196) (1,478,888) reverse acquisition reserve  6 (27,758,088) (27,758,088) (27,758,088) equity investment reserve  (826,855) (839,737) (794,668) cash flow hedge reserve  6,007 288,030 491,823 retained profit  59,057,225 54,796,780 56,018,304   67,701,266 63,102,945 64,978,714      equity attributable to non-controlling interest     non-controlling interest  359,213 343,642 455,007      non-current liabilities     borrowings and lease liabilities  27,981,083 13,681,567 26,361,482 deferred consideration  3,956,104 501,720 5,332,269 deferred tax liability  4,246,026 3,988,963 3,212,788   36,183,213 18,172,250 34,906,539      current liabilities     trade and other payables  7,228,104 5,685,245 6,749,312 borrowings and lease liabilities  3,964,092 7,078,714 3,787,362 deferred consideration  5,566,238 4,477,718 3,778,065   16,758,435 17,241,677 14,314,739 total equity and liabilities  121,002,127 98,860,514 114,654,999  interim consolidated statement of changes in equity for the six months ended 30 june 2025  share capital share premium shares held in treasury reverse acquisition reserve merger reserve share based payment reserve foreign exchange reserve equity investment reserve cash flow hedge reserve retained  profit total non-controlling interest total equity  $ $ $ $ $ $ $ $ $ $ $ $ $ as at 1 january 2024 143,192 35,417,072 (1,139,404) (27,758,088) 1,001,150 2,254,347 (1,305,037) (666,140) 276,265 51,495,814 59,719,171 610,375 60,329,546 share based payment expense - - - - - 151,138 - - - - 151,138 - 151,138 share buyback - - (39,114) - - - - - - - (39,114) - (39,114) issue of treasury shares - (190,603) 426,377 - - - - - - - 235,774 - 235,744 distribution to non-controlling interest - - - - - - - - - - - (259,231) (259,231) profit for the period - - - - - - - - - 3,300,966 3,300,966 (7,502) 3,293,464 other comprehensive income - - - - - - (103,159) (173,597) 11,765 - (264,991) - (264,991) as at 30 june 2024 (unaudited) 143,192 35,226,469 (752,140) (27,758,088) 1,001,150 2,405,485 (1,408,196) (839,737) 288,030 54,796,780 63,102,945 343,642 63,446,587 share-based payment expense - - - - - 228,205 - - - - 228,205 - 228,205 options granted as part of the purchase price - - - - - 188,676 - - - - 188,676 - 188,676 share buyback - - (131,409) - - - - - - - (131,409) - (131,409) issue of treasury shares - 190,603 - - - - - - - (157,640) 32,963 - 32,963 profit for the period - - - - - - -  - 1,379,164 1,379,164 111,367 1,490,531 other comprehensive income - - - - - - (70,692) 45,069 203,793 - 178,170 - 178,170 as at 31 december 2024 (audited) 143,192 35,417,072 (883,549) (27,758,088) 1,001,150 2,822,366 (1,478,888) (794,668) 491,823 56,018,304 64,978,714 455,007 65,433,721 share based payment expense - - - - - 174,915 - - - - 174,915 - 174,915 share buyback - - (265,989) - - - - - - - (265,989) - (265,989) distribution to non-controlling interest - - - - - - - - - - - (158,272) (158,272) profit for the period - - - - - - - - - 3,038,919 2,797,231 62,478 3,101,297 other comprehensive income - - - - - - 292,711 (32,186) (485,817) - (225,292) - (225,292) as at 30 june 2025 (unaudited) 143,192 35,417,072 (1,149,538) (27,758,088) 1,001,150 2,997,281 (1,186,179) (826,855) 6,007 59,057,223 67,701,262 359,216 67,060,478      interim consolidated statement of cash flows for the six months ended 30 june 2025   six months ended 30 june 2025 six months ended 30 june 2024 year ended  31 december 2024  $ $ $  unaudited unaudited audited cash flows from operating activities    profit before tax 4,176,965 4,705,581 6,356,484     adjustments for non-cash/non-operating items:    depreciation of plant and equipment 2,547,496 2,164,749 4,568,406 amortisation of intangible assets 455,240 427,026 854,878 share based payments 174,915 151,138 379,343 gain from reversal of contingent consideration - - (700,000) gain on bargain purchase - - (356,464) non cash employment costs - - 268,737 interest paid 1,222,090 731,327 1,690,900 interest received (227,773) (186,835) (395,729) operating cash flows before movements in working capital 7,931,639 7,992,987 12,666,555 (increase)/decrease in inventories 47,693 (147,333) (207,124) (increase)/decrease in trade and other receivables (2,275,154) (763,706) 1,634,614 decrease in trade and other payables 625,580 (811,844) 127,689 cash generated by operations 6,747,052 6,270,103 14,221,734 income taxes (38,008) (5,430) (1,739,725) net cash generated from operating activities 6,709,044 6,264,674 12,482,009     cash flows from investing activities    purchase of plant and equipment (608,449) (904,971) (2,108,307) disposal of plant and equipment 66,845 - 200,554 purchase of intangibles (2,682,026) (1,491,522) (3,813,954) acquisition of subsidiaries - - (571,246) reacquisition of franchises (2,900,000) (2,000,000) (6,511,890) sale of investments 2,475,545 2,428,680 192,161 interest received 227,773 186,835 395,729 net cash used in investing activities (3,420,312) (1,780,978) (12,216,953)     cash flows from financing activities    share buy-back (265,990) (39,114) (170,522) distribution to non-controlling interest (158,272) (259,232) (185,733) interest paid (1,087,157) (610,059) (1,635,600) proceeds from borrowings - 2,000,000 26,628,000 repayment of borrowings (1,074,804) (2,759,300) (18,410,090) repayment of notes (1,009,324) (3,726,079)     (8,098,116) repayment of lease liabilities (933,790) (1,306,955) (1,823,143) net cash used in financing activities (4,529,337) (6,700,739) (3,695,204)     net decrease in cash and cash equivalents   (1,240,605)   (2,217,043)  (3,430,148) cash and cash equivalents at the beginning of period   5,452,479   8,882,627  8,882,627 cash and cash equivalents at end of period 4,211,875 6,665,581 5,452,479      notes to the interim consolidated financial information for the six months ended 30 june 2025   1    general information   the group is a leading provider of minimally-invasive leak detection and remediation services and products for water and wastewater infrastructure. the group's strategy is to be a provider of "end-to-end" solutions - a "one-stop shop" for residential, commercial and municipal customers.   the company is a public limited company domiciled in the united kingdom and incorporated under registered number 03923150 in england and wales. the company's registered office is 27-28 eastcastle street, london, w1w 8dh.   2    significant accounting policies   basis of preparation and changes to the group's accounting policies   the accounting policies adopted in the preparation of the interim consolidated financial information are consistent with those of the preparation of the group's annual consolidated financial statements for the year ended 31 december 2023.     this interim consolidated financial information for the six months ended 30 june 2025 has been prepared in accordance with ias 34, "interim financial reporting". this interim consolidated financial information is not the group's statutory financial statements and should be read in conjunction with the annual financial statements for the year ended 31 december 2024, which have been prepared in accordance with international financial reporting standards (ifrs) and have been delivered to the registrar of companies. the auditors have reported on those accounts; their report was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis of matter without qualifying their report and did not contain statements under section 498(2) or (3) of the companies act 2006.   the interim consolidated financial information for the six months ended 30 june 2025 is unaudited. in the opinion of the directors, the interim consolidated financial information presents fairly the financial position, and results from operations and cash flows for the period. comparative numbers for the six months ended 30 june 2024 are unaudited.   this interim consolidated financial information is presented in us dollars ($), rounded to the nearest dollar.   foreign currencies (i) functional and presentational currency items included in this interim consolidated financial information are measured using the currency of the primary economic environment in which each entity operates ("the functional currency") which is considered by the directors to be the pounds sterling (£) for the parent company and us dollars ($) for american leak detection holding corp. this interim consolidated financial information has been presented in us dollars which represents the dominant economic environment in which the group operates and is considered to be the functional currency of the group. the effective exchange rate at 30 june 2025 was £1 = us$ 1.3724 (30 june 2024: £1 = us$ 1.2647).   critical accounting estimates and judgments   the preparation of interim consolidated financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and the reported amounts of income and expenses during the reporting period. although these estimates are based on management's best knowledge of current events and actions, the resulting accounting estimates will, by definition, seldom equal the related actual results.   in preparing this interim consolidated financial information, the significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 december 2024.       3      significant events and transactions   as detailed in footnote 7  the group launched its streamlabs partnership; reacquired its west georgia franchise and has repurchased 148,000 shares year to date.       4   segmental information   in the opinion of the directors, the operations of the group currently comprise four operating segments: (i) franchise royalty income, (ii) franchise-related activities including sale of franchise territory, business-to-business sales and product and equipment sales, (iii) us corporate-operated locations led by the group's u.s.-based american leak detection subsidiary and (iv) international corporate locations led by the group's uk-based water intelligence international subsidiary.   the group mainly operates in the us, with operations in the uk, canada and australia. in the six months to 30 june 2025, 84.8% (1h 2024: 87.6%) of its revenue came from the us-based operations; the remaining 15.2% (1h 2024: 12.4%) of its revenue came from its international corporate operated locations.   no single customer accounts for more than 10% of the group's total external revenue.   the group adopted ifrs 8 operating segments with effect from 1 july 2008. ifrs 8 requires operating segments to be identified on the basis of internal reports about components of the group.   information reported to the group's chief operating decision maker (being the executive chairman), for the purpose of resource allocation and assessment of division performance is separated into four income generating segments that serve as key performance indicators (kpi's):   -       franchise royalty income; -       franchise-related activities (including sale of franchise territory, product and equipment sales and business-to-business sales); -       us corporate operated locations; and -       international corporate operated locations.   items that do not fall into the four segments have been categorised as unallocated head office costs and non-core costs.   the following is an analysis of the group's revenues, results from operations and assets:   revenue      six months ended 30 june 2025    six months ended 30 june 2024 year ended 31 december 2024   $ $ $   unaudited unaudited audited franchise royalty income  3,212,811 3,554,456 6,503,134 franchise related activities  6,479,930 5,534,301 10,665,512 us corporate operated locations  30,337,393 28,298,872 55,854,674 international corporate operated locations  6,795,286 4,138,228 10,268,329 total   45,025,420 41,525,858 83,291,649             profit before tax     six months ended 30 june 2025    six months ended 30 june 2024 year ended 31 december 2024   $ $ $   unaudited unaudited audited franchise royalty income  1,124,483 1,138,459 2,296,003 franchise related activities  333,608 541,415 870,187 us corporate operated locations  5,378,814 5,134,673 10,005,806 international corporate operated locations  (167,683) (161,386) (601,899) unallocated head office costs  (1,867,259) (1,972,580) (5,684,612) net non-core costs/gains  (625,000) 25,000 (529,000) total   4,176,963 4,705,581 6,356,485     assets     six months ended 30 june 2025    six months ended 30 june 2024 year ended 31 december 2024   $ $ $   unaudited unaudited audited franchise royalty income  25,435,882 21,827,215 26,022,309 franchise related activities  3,429,417 3,495,142 3,142,406 us corporate operated locations  74,788,134 57,389,619 68,349,942 international corporate operated locations  17,348,694 16,148,538 17,140,342 total  121,002,127 97,860,514 114,654,999     geographic information the group has two wholly-owned subsidiaries - american leak detection (ald) and water intelligence international (wii).  operating activities are captured as both franchise-executed operations and corporate-executed operations.  ald has both us franchises and corporate-operated locations.  it also has international franchises, principally located in australia and canada.  operations focus on residential and commercial water leak detection and remediation with some municipal activities.  by comparison, wii has only corporate operations located outside the united states.  these wii international operations are principally municipal activities with some residential leak detection and remediation.  as noted herein, the group's vision is to become a multinational growth company and a "one stop shop" for residential, commercial and municipal solutions to water and wastewater infrastructure problems.    total revenue   six months ended 30 june 2025 unaudited year ended 31 december 2024 audited   us international total us international total   $ $ $ $ $ $ franchise royalty income 3,179,120 33,692 3,212,811 6,407,529 95,605 6,503,134 franchise related activities 4,679,930 - 4,679,930 10,665,512 - 10,665,512 us corporate operated locations 30,337,393 - 30,337,393 55,854,674 - 55,854,674 international corporate operated locations - 6,795,286   6,795,286   - 10,268,329 10,268,329 total 38,196,442 6,828,978 45,025,420 72,927,715 10,363,934 83,291,649     5    earnings per share   the earnings per share has been calculated using the profit for the period and the weighted average number of ordinary shares outstanding during the period, as follows:          six months ended 30 june 2025    six months ended 30 june 2024 year ended 31 december 2024          unaudited unaudited audited earnings attributable to shareholders of the company ($)      3,038,919     3,300,966     4,680,130 weighted average number of ordinary shares  17,333,707 17,402,288 17,391,205 diluted weighted average number of ordinary shares  17,756,887 17,823,584 17,825,495 earnings per share (cents)  17.5 19.0 26.9 diluted earnings per share (cents)  17.1 18.5 26.3     earnings per share are computed based on ordinary shares.  there is a class of b ordinary shares discussed in footnote 6 that are not admitted to trading.     6     share capital   the issued share capital at the end of the period was as follows: group & company   ordinary shares of 1p each   shares held in treasury number     number   total number at 30 june 2025 17,311,538 176,150 17,487,688 at 30 june 2024 17,398,688 89,000 17,487,688 at 31 december 2024 17,371,538 116,150 17,487,688   the net number of options including the new grants and leavers from the company at 30 june 2024 is 2,773,000.  on 29 september 2025 the company expects to issue options for 275,000 shares to satisfy 2024 board compensation.  the options have an exercise price of 345p which was the share price at end of the 1q after 2024 books were closed.   the compensation expense is already accrued in the 2024 accounts.       group & company share capital share premium shares in treasury   $ $ $ at 30 june 2025 143,192 35,417,071 (1,149,538) at 30 june 2024 143,192       35,226,469 (752,140) at 31 december 2024 143,192       35,417,071 (883,548)           reverse acquisition reserve   the reverse acquisition reserve was created in accordance with ifrs3 business combinations and relates to the reverse acquisition of qonnectis plc by aldhc in july 2010. although these consolidated financial statements have been issued in the name of the legal parent, the company it represents in substance is a continuation of the financial information of the legal subsidiary aldhc. a reverse acquisition reserve was created in 2010 to enable the presentation of a consolidated statement of financial position which combines the equity structure of the legal parent with the reserves of the legal subsidiary. qonnectis plc was renamed water intelligence plc on completion of the reverse acquisition on 29 july 2010.     7    transactions in the period and subsequent events    on 26 february, the group announced a strategic partnership with streamlabs, inc., a chubb company.  streamlabs is a leading provider of high quality wireless water monitoring devices that can provide alerts to the presence of water leaks and also a capability of remotely shutting-off water flow to pipes.  under the preferred partnership agreement, ald has preferred pricing for reselling streamlabs products, the ability to "white label" streamlabs products under the ald brand and the rights to data and dashboards to provide subscription-based aftercare to customers.   on 6 august, the group announced the reacquisition of its west georgia franchise for an initial payment of $350,000 in cash and additional payment based on an earnout formula with a maximum aggregate price of four times profits.  the transaction enables the group to create a regional hub in the southeast us aggregating existing corporate locations in georgia and south carolina.   year to date (issuance of this interim report) the group has repurchased 148,000 shares as part of its capital allocation policy.     8   publication of announcement and the interim results   a copy of this announcement will be available at the company's registered office (27-28 eastcastle street, london, w1w 8dh) from the date of this announcement and on its website - www.waterintelligence.co.uk. this announcement is not being sent to shareholders.   this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and distribution of this information may apply. for further information, please contact rns@lseg.com or visit www.rns.com.  rns may use your ip address to confirm compliance with the terms and conditions, to analyse how you engage 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