Amiad Water Systems Ltd Trading Update (7917W)
13 Dicembre 2019 - 8:00AM
UK Regulatory
TIDMAFS
RNS Number : 7917W
Amiad Water Systems Ltd
13 December 2019
13 December 2019
Amiad Water Systems Ltd.
("Amiad" or the "Company")
Trading Update
Amiad (AIM: AFS), a leading global producer of water treatment
and filtration solutions, provides the following update on trading
for the year ending 31 December 2019.
As noted in the Company's interim results announcement on 11
September 2019, Amiad entered the second half of 2019 with a higher
order book and larger sales pipeline than at the same point of the
previous year. During the second half of the year, the Company was
successful in converting this pipeline into sales and expects to
achieve revenue growth for full year 2019 over 2018. However, owing
to a number of global macroeconomic factors, in particular those
impacting the Americas, certain projects did not proceed due to a
lack of capital investment. As a result, the Company expects its
revenue for full year 2019 to be slightly below market
expectations.
The Company has continued to be impacted by currency
fluctuations, particularly the New Israeli Shekel against the US
Dollar as well as the strengthening of the US Dollar against other
local currencies, resulting in a reduction in revenue and gross
margin. In addition, the lower-than-anticipated sales in the second
half have meant that the Company has not been able to offset the
impact on gross margin of the large, lower-margin projects
completed in the first half of the year.
As noted in the Company's interim results, the adoption of IFRS
16 has a negative impact on the Company's reported net profit,
including a negative currency impact on finance costs resulting
from the revaluation of the operating leases that are denominated
in the New Israeli Shekel. The Company expects its reported net
profit for full year 2019 to be materially impacted by the adoption
of IFRS 16.
As a result of the lower-than-expected revenue, the gross margin
pressures and the impact of the adoption of IFRS 16, the Company
expects net profit for full year 2019 to be $3m-$5m below market
expectations.
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.
The Company will provide fuller details at the time of its full
year results.
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Enquiries
Amiad Water Systems Ltd.
Dori Ivzori, Chief Executive
Officer
Avishay Afriat, Chief Financial
Officer +972 4 690 9500
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Stifel Nicolaus Europe Ltd.
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Stewart Wallace, Ben Maddison +44 20 7710 7600
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Luther Pendragon
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Harry Chathli, Claire Norbury,
Rachel So +44 20 7618 9100
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About Amiad
Amiad Water Systems (AIM: AFS) is a leading global producer of
automatic, self-cleaning water treatment and filtration products
and systems. Through its engineering skills and ability to
innovate, Amiad provides cost-effective "green" solutions for the
irrigation and industrial purposes. In these markets, its unique
and high-quality products are being integrated into the core of
systems for filtration and water treatment, micro irrigation and
membrane protection, wastewater and potable water treatment,
cooling systems and sea water filtration.
Headquartered in Israel, Amiad provides these solutions through
ten subsidiaries and a comprehensive network of distributors to
customers in more than 80 countries.
For additional information or product details, please visit
www.amiad.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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