(Alliance News) - Israeli filtration firm Amiad Water Systems Ltd on Wednesday reported a first half profit fall despite a rise in revenue and said a current shareholder is looking to increase its holding in the company.
In the six months to June 30, revenue rose by 3.8% year-on-year to USD58.4 million from USD56.2 million but pretax profit fell by more than half to USD947,000 from USD2.2 million.
Finance costs incurred during the period doubled to USD2.1 million from USD1.0 million.
Revenue in the company's Americas region stayed flat at USD15.2 million but in the Europe, Middle East & Africa area, there was growth of 5.0% to USD8.7 million from USD7.8 million.
There was also a revenue rise in the Asia-Pacific region, by 2.9% to USD14.0 million from USD13.6 million.
Looking ahead, Amiad said it expects gross margin during the second half to improve on the 39% reported in the first. It also anticipates revenue growth in both its irrigation and industry services.
Amiad also Wednesday provided an update on a proposed investment from private equity firm FIMI Opportunity Funds, an existing shareholder with an 18% holding.
The investment, through a share placing priced at 230.00 pence per share, will total GBP17.6 million. Neither Amiad's board, nor its shareholders, have approved the investment as yet, the company added.
FIMI also is in talks with Kibbutz Amiad Agricultural Cooperative Society Ltd and its subsidiary HaChoshlim Foundation - Agriculture Cooperative Society for Business Ltd, to purchase roughly 10% of their holdings in Amiad.
If these transactions and the placing do occur, FIMI will own a 42% stake in Amiad, and the two company's will enter into a "relationship agreement".
Shares in Amiad were 6.7% lower at 250.00p each in London on Wednesday morning.
