Israeli water filter supplier Amiad Filtration Systems announced 2010 revenues and net profit slightly ahead of market expectations, but warned of mounting currency pressures as the Israeli shekel appreciates against the US dollar.

Revenue in 2010 increased by 29% to $89.4m from $69.1m in 2009, with growth driven by increased sales in new and growing territories and a return to growth in the irrigation segment, primarily due to the contribution from recent acquisition Arkal Filtration Systems. Arkal contributed $26.1m over an eight month period of ownership.

Profit before tax more than halved to $3.5m from $8.7m the year before.

A final dividend of 5.8 US cents has been declared, up from 4.3 cents the year before, making the total dividend for the year the same as 2009 at 7.8 cents.

Cash and cash equivalents at 31 December 2010 were $11.3m, up from $8.6m at the end of 2010.

"Looking ahead, the company expects the advances to come from the industrial and municipal segments, particularly in Asia and East Europe, as well as growing demand in the irrigation segment in all territories," said Arik Dayan, chief executive officer of Amiad.

"The first products and projects combining Amiad and Arkal technology are showing good traction and we expect these to contribute significantly this year. As a result, and despite the rise in the price of raw materials and impact of currency pressures, the board is confident of delivering strong growth in full year 2011," Dayan added.

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