Waterlogic PLC Trading Update (8488H)

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RNS Number : 8488H

Waterlogic PLC

18 July 2012

Waterlogic Plc

("Waterlogic", the "Group" or the "Company")

Trading Update

Waterlogic Plc (AIM: WTL.L), a leading manufacturer and global distributor of point-of-use ("POU") drinking water purification and dispensing systems, is pleased to announce a trading update for the period up to 30 June 2012 after entering a close period for its interim results.

The Company's core POU business-to-business ("B2B") operations generated revenues of approximately $46.5m (unaudited) during the period and the Board expects total Group revenues for the full year to be in line with market expectations.

Generally, direct sales, rental and service sales performed ahead of expectations; however, indirect sales have been impacted by difficult trading conditions. Whilst the resultant change in mix has improved gross margin, it has also lowered EBIT margin compared to the same period in the prior year.

There has also been continued investment throughout the period in developing products incorporating Waterlogic's highly innovative Firewall(TM) ultra-violet technology for the business-to-consumer ("B2C") channel with products now moving from concept to commercial prototype ahead of production of finished units expected to start in the fourth quarter of this year.

Waterlogic maintains a strong net cash position of approximately $36.0m (unaudited) as at 30 June 2012, allowing the Company to pursue further acquisitions in addition to the three completed in this period.

The Company intends to announce its interim results on 17 September 2012.

Enquiries:

 
 Waterlogic Plc                            Tel: +44 (0)20 7074 1800 
 Jeremy Ben-David, Group Chief Executive   Email: waterlogic@kreabgavinanderson.com 
  Officer 
 Steve Harrison, Group Chief Financial 
  Officer 
 
 Liberum Capital (Nominated Adviser        Tel: +44 (0)20 3100 2000 
  and Broker) 
 Steve Pearce 
  Richard Bootle 
 
 Kreab Gavin Anderson (PR Adviser)         Tel: +44 (0)20 7074 1800 
 James Benjamin                            Email: waterlogic@kreabgavinanderson.com 
  Madeleine Palmstierna

Website: www.waterlogic.com

Notes to editors:

Waterlogic Plc

Waterlogic Plc (AIM: WTL.L) is a leading designer, manufacturer and distributor of mains attached point-of-use ("POU") drinking water purification and dispensing systems designed for environments such as offices, factories, hospitals, hotels, schools, restaurants and other workplaces. Waterlogic is a Jersey registered company. Waterlogic's products and services are built on the simple vision of a three stage approach to purity:

   1.   Filtration to remove unwanted contaminants, chlorine and other water-borne tastes and odours

2. Waterlogic's Firewall(TM) ultra-violet ("UV") technology is one of the most effective water purification technologies for POU water dispenser applications currently on the market and its dispensers are certified by the Water Quality Association as being able to guarantee 99.9999% pure water 100% of the time, a fact which has been confirmed by over 5,000 physical tests in independent laboratories. The innovative Firewall(TM) technology incorporates a highly-specialised, compact UV system in the faucet/tap, which ensures that water passes through the UV system immediately before it is dispensed into a cup. This point of differentiation for Firewall(TM) is unique in the POU market.

3. BioCote silver antimicrobial protection. Plastic surfaces surrounding dispensing areas of Waterlogic units are infused with a silver additive called BioCote, a natural anti-microbial that inhibits the growth of microorganisms, giving yet another layer of hygienic defence.

Founded in 1992, Waterlogic was one of the first companies to introduce POU systems to Europe and has been a leader in the POU market in terms of product design and quality, the application of new technologies and in sales and service. Waterlogic has an extensive and expanding independent global distribution network in place, reaching 50 countries around the world.

Waterlogic products are currently being sold in North and South America, Europe, Asia, Australia and South Africa. Waterlogic's leading markets are the USA and Western Europe, in particular Germany, France, Scandinavia and the UK. Of the 1.9 million new POU and bottled water installations in the business-to-business market in the USA and Europe between 2005 and 2011, approximately 73% incorporated POU technology, of which approximately 27% were Waterlogic products.

The Directors believe that the movement away from bottled water coolers (BWC) to POU water dispensers is set to continue its current trend as a result of cost, convenience, health benefits and environmental considerations.

For the financial year ended 31 December 2011, the Group generated revenues and adjusted EBITDA (adjusted for share based incentives expense, capital reorganisation related costs and acquisition related costs) of USD 84.9 million and USD 13.4 million, respectively, and had approximately 565,000 machines installed as at 31 December 2011.

As part of Waterlogic's on-going commitment to providing safe water, the Group has pledged to donate USD 225,000 over the next three years to WaterAid. WaterAid is a renowned international non-profit organisation that transforms lives by improving access to safe water, hygiene and sanitation in the world's poorest countries. Since 1981 WaterAid has reached 15.9 million people globally with safe water. Website: www.wateraidamerica.org/

- ENDS -

This information is provided by RNS

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