AFS.L Share News (AFS)

(Sharecast News) - Shares of Amiad Water Systems tumbled on Friday as it warned that its net profit will fall $3m-$5m below market expectations for 2019.


The AIM-traded company said this was due to revenue coming in "slightly below" forecasts after being impacted by unspecified "global macroeconomic factors" and limited progress in some of its projects due to a lack of capital investment.

However, sales were still expected to exceed the $113.9m achieved in 2018 as it benefited from sales pipeline growth.

The water treatment and filtration products producer also said it had faced margin pressure due to some lower value projects completed early in the year and fluctuations in the value of the new Israeli shekel against the US dollar.

Amiad said: "Looking ahead, the company expects to enter 2020 with a higher backlog than at the same point in the prior year and is experiencing encouraging sales activity. In addition, as previously noted, the company continues to focus on implementing measures to increase internal efficiency and reduce its cost base.

"As a result, the board continues to look to the future with optimism."

At 0940 GMT, the shares were down 20% at 215p.