Water treatment and filtration group Amiad Water Systems booked a fall in first-half profit, though underlying operating earnings grew on higher margins.

Pre-tax profit for the six months through June fell to $2.2m, down from $3.2m a year earlier, when the company benefited from a currency hedging gain.

Operating profit rose 10% to $3.1m, as revenue rose around 1% to $56.2m.

Gross margin improved to 40.9%, up from 39.6%.

'I am pleased to report this set of results that represents solid progress for Amiad,' chief executive Dori Ivzori said.

'We achieved an increase in sales with positive momentum being sustained into the second half, including a return to growth in our key geography of the US.'

'We continued to enhance our operational efficiency, and benefitted, in particular, from the contribution from our new in-house metal fabrication facility.'

'We entered the second half of the year with positive sales momentum and anticipate reporting full year revenue growth for 2018 in line with market expectations.'

At 2:17pm: (LON:AFS) Amiad Water Systems share price was +4p at 249p