LONDON (Alliance News) - Filtration firm Amiad Water Systems Ltd said Thursday 2018 revenue grew in a "pleasing" set of results, despite profit dipping as foreign hedging gains subsided.
In 2018, pretax profit narrowed 5.9% to USD4.8 million from USD5.1 million the year prior, despite revenue rising 1.4% to USD113.9 million from USD112.3 million the year before.
Profit performance was held back by a sharp fall in finance income to USD510,000 from USD1.8 million the year prior, primarily due to exceptional gains in 2017 related to foreign currency hedging.
"This is a pleasing set of results with progress in most of our markets, including a return to growth in our key geography of the US," Amiad Chief Executive Officer Dori Ivzori said. "Our new Sigma series of irrigation products and the TEQUATIC PLUS Filter acquisition are performing well and receiving increasing demand."
Amiad does not pay a dividend at present whilst it is what it termed its "growth phase."
"Amiad entered 2019 in a stronger position than at the same point of the prior year with increased sales momentum and enhanced foundations," Ivzori added. We are receiving strong demand for the new products, which are expected to make an important contribution to growth in their respective markets. This is supported by a solid backlog of projects to be delivered in 2019 in the Irrigation and Industry units. We also expect significant growth in the US."
"As a result, we expect to achieve good revenue growth in 2019 in line with market expectations, and are targeting an improvement in gross and operating margins," Ivzori continued. "Consequently, we look to the future with confidence."
Shares in Amiad were 5.6% higher at 169.00 pence on Thursday.
