2nd Apr 2014 09:35
LONDON (Alliance News) - Amiad Water Systems Wednesday said its pretax profit halved in 2013 as revenues fell, leading the company to drop its final dividend for the period, but it expects to return to growth in 2014.
The water treatment and filtration company said its pretax profit fell to USD5.1 million from USD10.2 million the previous year as its revenues dropped 9.2% to USD118.8 million from USD130.8 million.
The company said its revenues fell as the company suffered from a slowdown of sales in the US and India, particularly in its Municipal and Industrial segments, as well as from the postponement in its implementation of International Maritime Organisation regulations in its Ballast Water segment.
Amiad decided to drop its final dividend to USD0.022 per share from USD0.06 per share, bringing its total dividend for the year down to USD0.073 from USD0.111.
The company said that it had achieved progress in its new products and strong growth in its Oil & Gas Division, including delivery of a pre-filtration solution at Pacific Rubiales Energy Corp's desalination plant in Columbia.
Amiad said it expects to return to growth in 2014, with an increase in revenue from its Oil & Gas Division, and an expected resumption of demand in its Industrial and Municipal segment in the second half of the year.
The company said it is committed to maintaining tight cost controls whilst continuing to invest in targeted sales & marketing and product development so that it is well-positioned to exploit expansion opportunities in the future.
Amiad Water Systems shares were down 6.0% to 263.25 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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