Solid 2013 figures for Waterlogic

AIM-listed Waterlogic, which makes point-of-use (POU) drinking water purification and dispensing systems for use in public places, announced a solid financial performance for 2013, with expected revenues rising by 23% to around $124 million (£103.11 million) on the previous year. The great thing about these results is that over 40% revenues are recurring rental and service income.

During the year the company, which operates in 50 countries, launched new products in Japan, Turkey and Italy, with revenue increasing to approximately $1.3 million in 2013 and open orders of approximately $800,000.

The acquisition of Cool Clear Water Group Limited, which establishes the firm as a provider of point-of-use drinking water systems in the Australian market, has progressed well and performed in line with expectations, the management said.

Approximately 715,000 machines were installed in places such offices, factories, hospitals, and schools as at 30 June 2013. They use the company's Firewall™ ultra-violet technology (UV) which incorporates a compact UV system in the faucet/tap, so the water passes through the UV system immediately before it is dispensed into a cup, an important point of differentiation in the market.

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.

In January, however, the AIM tiddler acquired the operating business and name of Eauvell Water Dispenser Service GmbH in Kiel, Germany, representing its first move into the bottled sector.

Eauvell is a supplier of bottled water coolers in northern Germany and provides its customers with spring water from sites in Kiel, Hanover and Greifswald. The acquisition is seen as an important part of the growth strategy for Waterlogic in offering both point-of-use and bottled water coolers and better coverage of the Schleswig Holstein region.

Against expectations, the shares fell 0.22% to 89.80p in early trading, a big discount to their 52-week high of 201p, with a predominance of small trades by private investors. In 2012 Waterlogic hit a rocky patch with a profit warning late in the year after delays to contracts for the supply of water filtration machines to the consumer market, and arranged a five-year multi-currency credit facility including term and revolving credit facilities of AUS$54.6 million (£30 million) and 51.6 million Norwegian Krone (£5.1 million).

Last September, the company recalled about 48,000 of their chiller-based water dispensers because the hot water tank can stop functioning and cause the machine to overheat, potentially causing a fire hazard.

As part of its commitment to providing safe water, it has promised to donate $225,000 over the three years to WaterAid.

The company will announce its preliminary results on 7 April 2014.