Amiad Water Systems' irrigation business the main source of revenues

Water treatment and filter provider Amiad Water Systems said that its irrigation business was the main contributor to revenues in the first half of the year, but the company was affected by the plummeting price of oil.

In a trading update for the six months ended 30 June, the company said the irrigation segment was providing the main source of revenue while there were meaningful signs of recovery from the Municipal segment.

In the oil and gas segment, there was a reduction in projects due to the industry-wide low price of oil, in comparison to 2015. This reduced revenue contribution from this segment during the first half of 2016.

The AIM-listed company also said it obtained significantly lower revenues from China and Turkey, compared with the same period last year, due to a decline in the industrial segment. Although orders secured in the first half of the year were able to support revenues in the second half.

It expects to report first half revenues of about $52m, a slight fall from $59.2m in the same period last. It said it had taken some cost actions in the period, but these are not expected to offset the impact of the reduction in revenue in the first half of the year.

Revenues in the second half of the year are expected to increase in comparison to the second half of the previous year.

Shares in Amiad Water Systems were up 9.67% to 140.01p at close.