TIDMWTL

RNS Number : 2893S

Waterlogic PLC

29 November 2012

29 November 2012

Waterlogic Plc

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

Trading Update

Waterlogic Plc (AIM: WTL.L), a leading designer, manufacturer and global distributor of point-of-use ("POU") drinking water purification and dispensing systems, announces that the Company's unaudited revenues for the ten months ended 31 October 2012 were USD 81.2 million (unaudited revenues for the 10 months ended 31 October 2011: USD 68.8 million).

Whilst the Board expects that trading for the final two months of the year will be strong, revenues for the year ending 31 December 2012 are expected to be approximately USD 100 million (2011: USD 84.9 million), which are lower than current market expectations. The Group has experienced weak trading from third party distributors in regions suffering from difficult macroeconomic conditions and has also been impacted by a delay in the deployment of certain B2C projects which were originally intended to take place in 2012. The Board is however encouraged by the recently announced agreements within the B2C division and significant revenue contribution from these contracts is now expected to start in early 2013.

As a result of the shortfall in revenues, profitability for the full year is also expected to be significantly lower than current market expectations.

Enquiries:

 
 Waterlogic Plc                            Tel: +44 (0)20 7074 1800 
 Jeremy Ben-David, Group Chief Executive 
  Officer 
 Peter Cohen, CEO Waterlogic Commercial 
 
 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 (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 595,000 machines installed as at 30 June 2012.

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

The company news service from the London Stock Exchange

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