Last checked at 8 Feb 2010 07:00
| PRESS ANNOUNCEMENT | |
| 8 February 2010
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| Somero Enterprises, Inc ® ("Somero")
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| Trading update | |
| The Board of Somero Enterprises, Inc, the North American manufacturer of patented laser guided equipment used for the spreading and levelling of high volumes of concrete for floors in the construction industry, provides the following update on trading for the year to 31 December 2009.
As we announced in November 2009, trading has remained difficult, and sales declined in the second half of 2009. However, full year results were broadly in line with our revised expectations and the business remained profitable.
We continue to manage our costs aggressively and, following the cost reduction programme in November, operating costs (excluding depreciation and amortisation) in 2010 are expected to be around $8.6 million, down from a level of $24 million in 2008.
Our lending bank remains supportive and we have re-set a 2009 year-end covenant and quarterly covenants in 2010 so that they are aligned with Somero's 2010 budget.
We believe that the outlook for 2010 is more positive than the previous year and we are expecting a gradual improvement starting in the second half of the year. As we have previously stated, we have not reduced headcount in the salesforce or the product development area, both of which are critical to support future sales, and Somero is currently introducing two new products at the World of Concrete trade show. We are also developing additional revenues in the faster growing economies such as China, Southeast Asia and parts of South America.
At the time of the placing announcement in June 2009, we stated the Board's intention to put in place a new employee share option scheme to retain and incentivise management. The Remuneration Committee has developed a substitute Stock Option scheme for management retention and incentivisation, which the Board intends to discuss with major shareholders in the near future.
Preliminary results for the year ended 31 December 2009 will be announced in May 2010.
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| Enquiries |
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| Hawkpoint Partners Limited | +44 (0)20 7665 4500 |
| Chris Robinson / Serge Rissi |
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| Collins Stewart Europe Limited | +44 (0)20 7523 8000 |
| Piers Coombs |
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