We can start right now if you're ready.
Sure.
Now presenting CEO Scott MacFabe for BluMetric Environmental.
Nice to see everybody this afternoon. Thank you for having me. This is officially the second official presentation by BluMetric to the investment community.
Very good capital.
Soon. We hate to be a best kept secret. It's not the only way to run the business. To the many people that have either followed us and invested in us, I want to make sure that I thank you for your patience. We hope to always make it worth your while. We appreciate our investors and most certainly want to see our shareholders do well. That is always at the top of our mind. This is number two. Let me bring you up to speed on where we're at with BluMetric and its exciting story from here. Standard statement on forward-looking statements. I'm sure you've all heard these a million times. Please don't make me read it. Let's give a little bit of an overview. Some of you don't know who BluMetric is. Some of you do.
Some don't. Really, we're a leading consultancy in water technologies and also professional services. This is a company that has been around over 45 years. It's only been publicly traded regarding or following on RTO 15 years ago. This is not a new company. This is not a startup. This is an established entity that's growing and effectively executing. Our vision, we aspire to be the environmental solutions and water technology company for those who want to positively impact people and the communities in which they live in. What we do is needed and necessary. We've completed over 5,000 projects. We have over 109 water tech systems deployed. We have over 220 dedicated employees, 10 offices, two manufacturing facilities, one just outside of Ottawa, Canada, and a new one recently acquired down in Gainesville, Florida.
Our trailing 12-month revenues right now is around CAD 40 million, and our trailing 12-month EBITDA is around CAD 2.1 million. Currently, the company has no debt, no material debt. We have over CAD 5 million in cash. We have operating income of around CAD 11 million, Dan, I would say. We're sitting in a very clean, very nice position. What makes us valuable? This is a specialized company. We're really focused on the sustainability and water scarcity business. We have a huge push on military demands, tailwinds, especially in our Canadian operations. I'll explain a bit about how that works with our business. Our strategy focuses on long-term profitable growth. If you'd followed our stories for the last seven years since I've been with this company, we have gone from a market cap of CAD 3 million and the stock price of about CAD 0.08.
We currently sit in the mid-CAD 40 million, CAD 45 million, and our stock price is around CAD 1.15-CAD 1.20. Proven diversified customer base, allowing for resiliency in our downturns, and we will break that up for you shortly. We are at a key inflection point. It is the so-so what? You run a good company, you are profitable, you are out of debt, you have cash in the bank, you have what you need to do something, but what next? We will show you it is a combination of organic and inorganic growth. Goal to increase our share of recurring revenues, helping build a stronger foundation. We like sticky revenue. We need to grow that and build it. It is very eminent and obvious in our professional services business. Our client retention is over 92%. For our technical services, our technical water tech, it is important for us to build on our O&M business.
Of course, strategic geographic expansion. We're going to take advantage of our opportunity. We're just building on in the U.S. For those who follow us, we closed on Gemini Water at the end of September last year. The company was running at about CAD 7 million-CAD 8 million top line and about 10% EBITDA. Happy to report a little six, seven months later, they went from 11 people to around 24 people. We've more than doubled their capacity. Their floor space, they moved into a new facility to manufacture from 10,000 sq ft to 25,000 sq ft and are running an exceptional organic growth post-acquisition. That's a big part of our strategy. It's just not looking to buy somebody. It's having the discernment to find someone who fits your culture and your business objectives, but also someone who's ready with latent opportunity we can invest in and grow.
Two complementary business verticals. We talked about that, professional services. Really, that's water resources, environmental engineering, site assessment, industrial hygiene, classical environmental consulting, water consulting company. And then our water tech systems. We call mission-ready water. Those are the agile systems that we build for the military, Department of National Defense, specifically in Canada. Water purification, water treatment, water desal, membrane bioreactors, fixed and mobile systems. Our methods for compact systems also work very well for mines and remote settings. We've actually even sold the system and designing it for an indigenous community in western Canada that's remote and currently on a boil ban. Those are great problems to solve. We are very fortunate to be in the business, again, to get up every day and know that you're going to make a difference. Of course, service and support. Our solutions, we combine professional services.
We're working with our clients. We're very close to them. We understand their problems, and we can come up with a combined service and solution that includes tech or not, services or not. In the U.S., that's Gemini Water, as you mentioned. We like their credibility, or we love their credibility, but the brand there is well understood. We don't want to mess with that brand. It'll be a division of BluMetric, and we'll continue to respect and grow that, see how that plays out in time. I think that's part of the discernment and discipline and respect that's necessary to have a successful integration. Our water tech in Canada, as you said, that's mostly the containerized system. If you look on the screen, if we go bottom up, actually, the very bottom is a brand new system that we won with Rheinmetall out of Germany.
Rheinmetall, if you don't know them, they're an extremely well-understood technology integrator. We work with them to execute on a program for mobile water for the army. That's about a CAD 12 million contract. Our system, our technology has been tested and proven, so we have that box checked. We're waiting for the gatekeeper to open up the PO for full production, which we think is imminent. That'll be 26 of these systems coming online in full production post-haste. This is just a diagram. If you see the green circles, the size is revenue, and the location is where that revenue is generated. So BluMetric mostly was a Canadian company. We did work where our good clients needed us to be, but really that was our footprint.
Also in the very far north, as you noticed, north of 60 in Canada, our northern waters, sovereign waters, we have excellent experience there. We work in Nunavut. We have offices in Yellowknife. We are really expert at working in those harsh conditions, difficult conditions. The blue circles, that is where Gemini has worked and continues to work. Really in the Caribbean, island nations, southern states, Mexico, some in Central America, very much the well-understood, very repeatable water treatment systems, purification systems. When we merged with, purchased Gemini, the first contract was a CAD 14 million win with the island of St. Kitts. We are in full production of that right now. It is being installed. It is about a 4 million gal per day system that will produce 40% of the necessary water for the island for both drinking water and agricultural water.
The country of the island can only draw water currently about 12 hours a day. They don't have an existing sustainable water supply. They will when we're done. We're thrifty. We like to say smart thrifty in that we don't have a lot of R&D budget. Our work is very close with our clients. The solutions that we're coming up with are on the basis of immediate discussions about problems yet to be solved for our clients to operate their business or their missions however they need to. We spend an extensive amount of time with our clients to understand a problem in the consultancy, come up with a new innovative solution that'll fit either with our tech or elsewise, and that becomes a new part of our product. There's not a lot of overthinking. There's not a lot of hobby tech.
This is applied and once done, executed upon. We find that works really well, and our clients really like that. That is also part of our customer model. We really like to be in with our clients with that kind of a relationship where we truly understand the problem and come up with an appropriate solution. Our ambition before we got Gemini was to even our revenues out 50/50 between water tech and our professional services side of the business. Having just purchased and integrated the Gemini entity, we are definitely that or better. In fact, I think we are probably 55% water tech now in terms of revenue production because they have grown so quickly post-acquisition. We want to have the balance in our professional services and water tech business.
We want to continue to see organic growth and organic growth with existing, but also taking advantage of the opportunities post-acquisition. As I said, we've doubled Gemini's size in six months, and we see continued upside with that business, which is wonderful. We expect that to continue. We want to build selective M&A pipeline, inorganic growth opportunities. We are very, very selective. We are in no rush. We are looking for companies that fit with our culture. They have additive qualities to our services and tech, and they are truly accretive. We are not looking for a dumpster fire. We are not looking for a fixer-upper. We want quality adds to our enterprise and then expand recurring revenue from professional services and water tech.
We recently recruited and secured an old friend of the leading managing partner, our principal down in Gemini, who'd worked with him for many, many years, and he is an O&M expert or a full water cycle expert. He is relocating back to the States. He is going to work with his old friend who has historically grown and led Gemini, and we are going to come up with a way to make sure we take advantage to service what we sell. Typical ratios are the operation and maintenance side of any kind of a capital install is about 4x. We are leaving 4x on the table currently for anything that's installed. A little history. I do not want you to live in the past, but we are proud of what we are accomplishing. Up to 2024, it is really getting a business that's stable, de-risked, profitable, organic growth, and extinguished debt. We have done that.
Now what? You've got to see geographic expansion, investment in manufacturing, our people, new tech, business development, new acquisitions, and a sales pipeline. It's a healthy business that we can look at and grow. Past 2025 and onward, really build our O&M offering, secure military partnerships, selective M&A, organic growth, and improve recurring revenues. It's kind of base hit baseball. There's nothing special here. It's just executing. We're positioning ourselves for growth. The water tech in Canada is a long-term military relationship. Anything you read shows not only a commitment, hopefully beyond rhetoric, that Canada will spend 2% of their GDP or better on military. It's astonishing. It's embarrassing. It's unacceptable that we haven't up to this point. In fact, we're grateful to the U.S. administration for pushing us to get to the point where we're ready to make that spend. We have contracts.
We have one that are stalled that just need ink on contracts for us to execute. The sales cycle in military in Canada is glacial, but it's speeding up, and that's good news for us. Gemini, on the other hand, they work on a stopwatch. The phone rings. They're out in the field. They're executing. They really are in high demand. That's really our good fortune is that we've got an organization we can support and help them. Not historically, they were not going to overdrive their headlights. They're very disciplined in what they take on and execute at a high level. When you bring in now twice the resources and twice the floor space, you're comfortable. They're comfortable of going to do more work. That'll continue. Professional services, sales, and business organization, that'll continue to support. Wastewater solutions for industrial and commercial developers.
We're finding that, especially in Texas of all places, there's a lot of development that needs to go on beyond the existing available infrastructure's fringe. That kind of build your own and you can execute your growth strategy is very prevalent. That's a lot of actually wastewater, membrane bioreactor type work. That continues to blossom, and Gemini are extremely good at that. What's our long-term growth strategy to succeed? We're going to continue M&A and organic growth, expand our product offerings, geographic footprint expansion in Canada, U.S., and possibly the Caribbean, strategic hires to strengthen our operations, business development post-acquisition, and then new sales and repeat business with existing clients. Again, it's nothing flowery, nothing new here. It's execution. This is just a diagram that indicates, or at least depicts, the diversification in our business.
We have four main business verticals: commercial, industrial, government, military, and mining. Professional services has always cut across all four. For water tech, we were always in BluMetric, military and mining, and that was it. Both are large contracts, but slow sales cycle, long sales cycle. Gemini, on the other hand, they are commercial, industrial, and government. It fits perfectly within the matrix of our business. They work on a stopwatch. The phone rings. They are on it. Away they go. It smoothed out our sales cycle on closing new work. It presents great opportunity for us to even improve our business in terms of how we operate. For all of their work, they have just become accustomed that 50% of the job is paid upfront before you even put a foot in the field or a pen to paper. That also helps our cash flow.
We're really excited about how this is all evolving. It gives us a resilient basis to operate. Commercial, industrial may struggle. Government usually is fairly steady. Military, especially now, is hot, and mining is also. You can see depending on which way economic winds blow, we should be able to weather those storms. We spent a lot of time improving our book of business. This is just a snapshot to give you an idea. Again, all these will be available on our website, so that'll be provided to you. The intent here is that if you look historically, yeah, well, they haven't really grown much. What you don't see in those diagrams of our revenue production is the improvement in the quality of the client base.
When you take out a client that you've relied on for many years, but they're a terrible client and you need to say goodbye, you have to replace that revenue. Otherwise, you're going to see it go in the opposite direction. That is why you'll see these step changes in our revenue production. A couple of examples. We talk about Iqaluit. This is way up in Baffin Island where the military brought in our systems. They put three of them next to the ocean. The reason they had to was all of their electricity is diesel generated. There's no other way to produce power on that island. It's so far in the remote north. They contaminated their water supply. They had to bring in three of our systems. They put them up to the sea. We operated them.
We came up with a cold water package for them to operate in minus 40 degrees Celsius, which is a fine winter day in Iqaluit, to produce all the water for the island for four months until they fixed the problem. We have in 20 years never missed a mission with the military. We have always executed. The reason is this is elegant engineering that's simple to operate. It has low energy demand, has low consumables. It uses backwash circuits and membranes. I could teach anyone in this room how to operate it in one day. That's the simplicity and resiliency you need in a technology that's valuable. We have the military actually. We had a conference. We held internal conference two weeks ago to bring our leadership together.
The military looked us in the eye and said, "I have been in the field in Afghanistan with your technology, and you have never let us down. Without water, there is no mission." Executing a giant mine. This is way up in Yellowknife. It is an enormous mine. You have all heard of perhaps BQE Water. They treat selenium at mines. This is us treating any water at mines. I do not know if you work with mines or not, but they are very seasonal. They shut off in the winter conditions. They turn on in the thaw. We are treating all of the water from the mine. We provide all of the skill base. We tweak and tune and operate the water treatment system at the mine so they can do what they need to do.
We've never had a notice of violation since we've had our hands on this system. Tailwinds for growth. Economic uncertainty creates new opportunity. We know change is imminent. We know there's a lot going on right now, but we use that as an opportunity to shape our thinking and look for new opportunities for the business to grow. Military demand is off the charts. Industrial, commercial, fixed water treatment systems are there. That should grow. Water scarcity, conservation, humanitarian relief efforts. That's not going away. Three days without water, you're dead. This is absolutely necessary to have in place as a contingency in the event your grid goes down. The impact of emerging contaminants, PFOS, and others. We can treat that. The impact of climate change. Why is Gemini working in the Caribbean?
The advent of global sea change, rising sea levels, the event of harsh but less episodic recharge events from rain events to get clean water or fresh water into their aquifers in the ground, and saltwater intrusion from the ocean underneath islands is eradicating their fresh water supply. That is at every island. That is just not one or two. We are working with those islands to make sure that all of their assets, investments are not stranded. We can go in. We can help them treat their brackish water as their wells go brackish. We can put in a whole new desal system if they need it from the ocean. They know they have the future to operate as they need to.
Think about all the investment that's gone on for all of the last 30 years in all of these locations, the value of that all at risk without this technology. Profitability creates opportunity. This is a bit of a step change chart. You'll see our EBITDA right now around CAD 2.1 million, trailing 12 months with about a top line of CAD 40 million. We're looking to trying to hit for the end of the year, CAD 50 million top line, CAD 4 million bottom line, EBITDA. That's what we're shooting for. This is just cash, net cash. You can see getting out of the red and into the black is a really good feeling, and maintaining that and reinvesting that is even more important. You can see that's not an easy thing to do and run an operation, but the team has done an excellent job.
We currently sit with actually CAD 5.5 million cash in the bank and a CAD 4 million credit facility at BMO. Reinvest the business, execute our strategic acquisitions, and build on what we've currently invested in. That's how we're going to have our capital. That's a lot of experience looking at you there. I'm not going to go through every one of them, but that's probably 300 years' worth of management experience looking at you. That's our management team. Here's our board. There is four independent and one internal and myself on the board. There is good governance and balance. I put in a comp table here. You can see we're around CAD 47 million or about CAD 44 million. Looking at EV over sales of about 1.1.
You can compare it how you like, but I think it shows where we sit relative to where we are and where we need to be in terms of our valuation. If you look at our quarterly revenue growth year-over-year, we're at 65%. Capitalization, current internal ownership is 43%. We like the trend on the stock. The presentation that we gave in Vancouver is the bottom of that lift that you see from last fall. Word's getting out on who BluMetric is. Why invest in BluMetric? We're a specialized company. We benefit from global sustainability, water scarcity, military demands, long-term strategy on profitable growth, stay in the black, manage our debt, proven diversified customer base. We're resilient. Key inflection point, ready to do the next deal when it's the right deal.
Goal to increase our share of recurring revenues and build on a stronger foundation and take advantage of strategic growth in the U.S. and abroad. Thank you. I think I have like one minute for questions. Yes?
Which of the four key markets excites you the most?
Right now? Military. It is so ready to go, and we are so ready to see it go. Maybe it's just a personal thing. We've been waiting and waiting, but we're ready. We're due. Yes?
I guess views on margins could improve over the next few years to get more to the bottom.
Yeah. Our goal is to go from 6%-8% EBITDA up to 10% is where we should be living right now.
Keep in mind, we've been reinvesting a lot of our own money that kind of erodes that number, but we should be at a 10% EBITDA without a doubt. Yes?
Your future acquisitions, what are the businesses, will they be on the service side or on the system side?
Both. It really comes down to when we're presented with an opportunity, which one will represent the best use of our capital. We'd like to see water tech is far more scalable. We like to see that grow. You'll see we just added to our board an old friend of mine who was the former Chief of Staff for the Southern California Water District. Looked after every water district from LA down to the Mexican border. I worked with him in New York City 20 years ago. He's moving back to Toronto. He's now on our board.
That's Mohsen Mortada . He's also the former CEO of our Middle Eastern operations, and he understands the demand for desal there as well. We have boundless opportunities. I think we have to just make sure we maintain our discipline. Any questions? Yes?
Just commenting on a few of your recent records on contract rates. Correctly, there was one referencing a cruise line operator, and then at least one referencing a private island development in the Caribbean. Can we just get any more granularity as far as the approach to those verticals as well? In terms of what the addressable market is outside of these contracts with the islands themselves, the proprietary.
This presentation has now finished.