Amiad Water Systems Ltd Business and Trading Update (7140N)
02 February 2016 - 6:00PM
UK Regulatory
TIDMAFS
RNS Number : 7140N
Amiad Water Systems Ltd
02 February 2016
2 February 2016
Amiad Water Systems Ltd.
("Amiad" or the "Company")
Business and Trading Update
Amiad (AIM: AFS), a leading global producer of water treatment
and filtration solutions, provides the following trading update
ahead of announcing its annual results for the 12 months ended 31
December 2015 in March 2016.
As stated at the time of the Company's interim results statement
on 10 September 2015, the momentum in the Irrigation segment in H1
2015 was sustained into the second half of the year, largely driven
by increased sales of the Company's new Omega and Sigma products.
The Oil & Gas segment continued to improve due to growth in
sales in the US and EMEA territories. However, the Industrial and
Municipal segments continued to face headwinds, mainly due to the
global macroeconomic conditions. Consequently, the Company expects
to report H2 2015 revenues broadly similar to H1 2015 resulting in
full year 2015 revenues being marginally ahead of market
expectations.
In 2015, the management team's focus was on generating profits
through expanding the business and maintaining tight cost control.
The restructuring and cost cutting exercise that the Company
commenced at the end of 2014 yielded better than expected results.
The Company also saw gross margins improve due to efficiency gains
in the manufacturing process and product mix. As a result, the
Company expects to return to profitability for FY 2015 and report
strong profit before tax above market expectations.
The impact of foreign currency exchange rates was broadly
neutral as the benefit from the US Dollar (USD) improving against
the New Israeli Shekel was offset by a decrease of the EURO and
Australian Dollar compared with the USD.
Net income is also expected to be markedly improved, above
market expectations, due to a change in the mix of income between
the group entities and utilising losses in previous years resulting
in a lower consolidated income tax rate.
Due to the improved performance of the Company and a decrease in
working capital, Amiad expects to report solid reduction in net
debt that is significantly better than market expectations.
The Company will provide fuller details at the time of its full
year results.
Enquiries
Amiad Water Systems Ltd.
-------------------------------- -----------------
Arik Dayan, Chief Executive
Officer +972 4 690 9500
-------------------------------- -----------------
Stifel Nicolaus Europe
Ltd.
-------------------------------- -----------------
Stewart Wallace, Ben Maddison +44 20 7557 6030
-------------------------------- -----------------
Luther Pendragon Ltd.
-------------------------------- -----------------
Harry Chathli, Claire Norbury,
Oli Hibberd +44 20 7618 9100
-------------------------------- -----------------
About Amiad
Amiad Water Systems (AIM: AFS) is a leading global producer of
automatic, self-cleaning water treatment and filtration products
and systems. Through its engineering skills and ability to
innovate, Amiad provides cost-effective "green" solutions for the
industrial, municipal, irrigation, oil & gas and ballast water
markets. In these segments its patented products are being
integrated into the core of systems for filtration and water
treatment, micro irrigation and membrane protection, wastewater and
potable water treatment, cooling systems and sea water
filtration.
Headquartered in Israel, Amiad provides these solutions through
nine subsidiaries and a comprehensive network of over 170
distributors to customers in more than 80 countries.
For additional information or product details, please visit
www.amiad.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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