Last checked at 8 Oct 2013 07:00
8 October 2013
Somero Enterprises, Inc ("Somero" or the "Company")
Trading update
Since announcing our interim results at the start of September, the Company has seen better than expected growth in orders during the month which is also a seasonally important trading period.
There has been strong demand for Somero products across our range of laser screed equipment. Order intake in the United States has been particularly good and a new feature of the ongoing recovery in sales is that customers are beginning to place orders for more than one of our machines at a time. Purchasing our products does typically mean a significant capital investment decision for our customers and this new dynamic reflects the Company's view that confidence is continuing to grow in a steady economic recovery.
Order flow has not just been healthy in the United States, though, and Somero is very pleased to report that new business development continues to prosper in international markets and in the last month, this has been particularly the case in China.
Earlier in the year we commented that due to investment in incremental sales and personnel costs, second half profitability may not match the first half. However as a result of the orders received in September and which have now closed at our month end, second half profitability is now likely to exceed the first half. The Board believes that EBITDA will be at least 10% above the latest market estimates post the announcement of interim results and if trading conditions continue in October and November as they have done in the latest month, EBITDA could be some 20% ahead.
For further information, please contact:
Somero Enterprises, Inc Tel: +1 239 210 6507
Jack Cooney, CEO
Mike Niemela, CFO
Canaccord Genuity Limited (Nominated Adviser & Broker) Tel: +44 20 7665 4500
Chris Robinson
Piers Coombs