Somero Regulatory News (SOM)

24 July 2023

Somero Enterprises, Inc.

("Somero", "the Company" or "the Group")

Trading Update

Somero® provides an update on trading for the six months to 30 June 2023 ahead of its interim results announcement, scheduled for release on 31 August 2023.

With non-residential construction and underlying market conditions remaining healthy across the Company's major markets and following a solid June, trading for H1 2023 ended at the high end of the guidance range set forth in the 20 June 2023 trading update.

As expected, trading in North America was the driver for the overall decline compared to H1 2022, due to the factors previously reported in the 20 June 2023 trading update, while H1 2023 trading in Europe and Australia reflected the positive momentum carried forward from H2 2022 with both regions reporting improvement over the comparable H1 2022 result. Performance in the European and Australian markets, supported by healthy market activity, has been driven by strategic investments in both regions and traction with acquiring new customer relationships and with increased market penetration of our broader product offering. Territories comprising our Rest of World regions contributed positively to H1 2023 trading on a combined basis as expected, driven in part by Latin America and the Middle East that both reported increased revenues compared to H1 2022.

Also as indicated in our 20 June 2023 trading update, the Company anticipates improvement in H2 2023 trading in North America compared to H1 2023 driven by increased availability of the S-22EZ, supported by direct feedback from customers indicating healthy non-residential construction activity across a wide range of project types that translates to extended project backlogs. The Company also anticipates healthy contributions to H2 2023 trading from Europe and Australia, and H2 2023 trading comparable to H1 2023 in the Rest of World territories. 

As such, the Board remains confident that 2023 results will fall in line with market expectations with revenues of approximately US$ 120m, EBITDA of approximately US$ 36m, and year-end cash of approximately US$ 32m.