Trading Statement (9700V)
January 23 2012 - 2:01AM
UK Regulatory
TIDMAFS
RNS Number : 9700V
Amiad Water Systems Ltd
23 January 2012
23 January 2012
Amiad Water Systems Ltd.
("Amiad" or the "Company")
Trading Update
Amiad, a leading global producer of water treatment and
filtration solutions, provides the following trading update for the
year ended 31 December 2011 ahead of the Company's full year
results, which will be announced in April 2012.
The Company continued to make significant progress in all
segments throughout the year as the integration of Arkal Filtration
Systems' ("Arkal") business with Amiad was completed. As a result,
Amiad expects to report approximately 30% growth in annual revenue
to $116m (2010: $89.4m) in line with market expectations, with
gross margins remaining consistent with the first half of 2011.
Looking ahead, the Company entered 2012 with a substantially higher
backlog than at the corresponding period in 2011 and expects to
deliver further growth in the business.
Rebranding the Company and expanded product offering
Amiad adopted Amiad Water Systems Ltd as its new company name to
reflect the development and expansion of its product offering
following the acquisition of Arkal in 2010. Based on distinct, but
synergistic and complementary technologies, Amiad now operates
under three brands - 'Amiad', 'Arkal (by Amiad)' and 'Filtomat (by
Amiad)' - providing a wider range of products based on innovative
solutions that can form the core of any water filtration or
treatment system worldwide.
In November 2011, Amiad launched eight new products under its
three brands. The new products, which represent a major expansion
of Amiad's offering, have applications across the Company's range
of sectors, and include two that are designed specifically for its
new target segments of oil & gas and ballast water. The new
products will start to be delivered in 2012 and are already
receiving significant interest.
Business progress
Amiad maintained strong momentum in the second half of 2011,
building on the successes achieved in the first six months of the
year. The Company performed well in all markets, with sales in the
irrigation segment increasing globally, especially in the United
States. In the industrial and municipal segments, sales were
especially strong in China, East Europe, Australia, South East Asia
and Turkey. This includes a $2.85m agreement, announced on 19
December 2011, for the provision of the next stage of a water
filtration project with one of South Korea's largest steel
factories, which is to be delivered in 2012. In addition, Amiad
made progress in the ballast water market in the United States.
In India, production continued to increase at Amiad's subsidiary
following the completion of the product assembly line in late 2010.
This reflects Amiad's strategy to, where possible, transfer
production to local sites to improve efficiency, reduce
time-to-market and save costs. Similarly, Amiad established Amiad
Sistemas de Agua LTDA, in September 2011, as a wholly-owned
subsidiary to enhance the sale and marketing of the Company's
products and solutions in Brazil, where there is increasing
interest and investment in water infrastructure projects. Amiad has
already begun to benefit from this, with good progress expected to
be made in 2012.
Enquiries:
Amiad Water Systems Ltd.
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Arik Dayan, Chief Executive Officer +972 4 690 9500
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Nomura Code Securities Ltd.
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Chris Collins, Giles Balleny +44 20 7776 1200
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Luther Pendragon
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Harry Chathli, Claire Norbury +44 20 7618 9100
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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