Amiad Water looking at better-than-expected 2015

The AIM-traded producer of water treatment and filtration systems said the momentum in its irrigation division outlines in the firm's interim results in September was sustained through the period, largely driven by increased sales of the company's new Omega and Sigma products.

Its oil and gas segment continued to improve through growth in sales in the US and Europe, Middle East and Africa territories, the company claimed.

"However, the Industrial and Municipal segments continues to face headwinds, mainly due to the global macroeconomic conditions", the board said in a statement.

The company said it expected to report second half earnings broadly similar to first half earnings, resulting in full year revenues marginally ahead of market expectations.

"In 2015, the management team's focus was on generating profits through expanding the business and maintaining tight cost control", the board said.

"The restructuring and cost cutting exercise that the company commenced at the end of 2014 yielded better than expected results", it claimed.

The board said Amiad also saw gross margins improve due to efficiency gains in the manufacturing process and product mix.

"As a result, the company expects to return to profitability for FY15, and report strong profit before tax above market expectations", it said.

Amiad said the impact of foreign currency exchange rates was broadly neutral for the period.

The company's board also said it expected a solid reduction in net debt in its full year results, significantly ahead of market expectations.

Amiad Water Systems' board was due to publish its full year results in March.