Amiad Water Systems Ltd 6 month Results

Amiad, a leading global producer of water treatment and filtration solutions, announces its interim results for the six months to 30 June 2011.
 
Financial Summary

• Revenue increased by 56% to $59m (H1 2010: $37.9m; H2 2010: $51.5m)
• Operating profit was $5.5m (H1 2010: $2.1m; H2 2010: $2.1m)
• Profit before tax was $4.9m (H1 2010: $1.1m; H2 2010: $2.3m)
• Gross margins at 44% (H1 2010: 45%; H2 2010: 42%)
• Fully diluted earnings per share was $0.18 (H1 2010: $0.04; H2 2010: $0.103)
• Interim dividend of $0.049 per share (H1 2010: $0.02; H2 2010: $0.058)
• Cash and cash equivalents at 30 June 2011 were $15.0m (31 December 2010: $11.3m)

 
Operational Summary

• The Company’s revenues grew in all territories
• Return to growth in the irrigation segment in the United States
• Operational progress in new and growing geographies and segments, including:
  – Secured new projects in the municipal segment in East Europe and Russia, and for provision of drinking water in Vietnam
  – Successfully commissioned a pre-filtration system, based on Arkal disc technology, at a desalination plant in Adelaide, Australia
  – In the oil & gas industry, secured new projects in Singapore and the second phase of an existing project in Central Europe
  – Providing SpinKlin Disc Filters, part of the Arkal family of products, for the Aquapolo tertiary wastewater treatment plant in São Paulo, Brazil
  – Experienced increased interest in the ballast water industry, particularly in the United States
• Strategic:
  – Acquired the remaining issued share capital of the Company’s subsidiary in France, established “Amiad Europe” and, post period end, established “Amiad Brazil” as a wholly-owned subsidiary
  – Post period end, adopted Amiad Water Systems Ltd as the Company’s name, reflecting the development and expansion of Amiad’s offering

 
Outlook for FY 2011

• Increase in revenues expected to continue across all segments
• Further expansion into new markets, including ballast water, and territories to deliver increased sales
• Irrigation segment continuing to grow
• Ongoing impact of raw material prices and currency fluctuation
• Board confident of achieving significant revenue growth, ahead of market expectations

 
Commenting on the results, Arik Dayan, Chief Executive Officer of Amiad, said: “As we have stated previously, 2010 was a landmark year that laid the strategic foundations for future progress. The first half results demonstrate the strength of this strategy with growth in all segments and territories resulting in revenues and profits exceeding market expectations.
 
“Looking ahead, we entered the second half of 2011 with a greater backlog than at the same time last year as demand for clean water – for drinking, irrigation and industrial use – continues to increase throughout the world. As a result, Amiad is well-positioned to achieve significant revenue growth for the full year 2011 ahead of market expectations.”