Last checked at 17 Jul 2018 07:00
17 July 2018
Somero Enterprises, Inc.
("Somero" or the "Company")
Trading Update
Positive trading momentum, in line with expectations
Somero is pleased to provide an update on trading ahead of its interim results announcement scheduled to be released on Wednesday 5 September 2018.
Somero is pleased to report solid H1 2018 trading as anticipated with four of the Company's six territories, including the Company's largest markets, reporting growth over H1 2017. This positive trading momentum, the continuation of the healthy market conditions across Somero's global footprint, along with robust margins and operating cash flow generation has underpinned the Company's continued expectation that trading for the full year will be in line with market expectations. Net cash at 30 June 2018 was in line with management's expectations.
In H1 2018 North America and Europe, our two largest markets, were the most significant contributors to the growth compared to H1 2017, with meaningful contributions to growth also coming from the Middle East and our Rest of World territories. In China, while H1 2018 trading ended slightly down from H1 2017 we remain encouraged by the activity level in the market and are pleased to report that we have filled our China National Sales Director role, a key addition to the team. In Latin America, sales were down in H1 2018 compared to H1 2017 due in part to the timing of customer projects, but we expect improvement in H2 compared to H1 2018 as future activity levels are anticipated to be healthy in this territory. On a product basis H1 2018 trading compared to H1 2017 was also balanced with Boomed screeds, Ride-on screeds and other revenues, that include parts and accessories, all key contributors to growth.
Jack Cooney, CEO of Somero, said:
"The first half of the year has seen solid growth in terms of profitability and cash flow generation. The positive momentum of our business and favorable market conditions point to a positive H2 2018. In addition, we are truly excited about the significant opportunities for Somero that lie ahead derived from our continued investment in new product development, a key element to our long-term growth strategy."
For further information, please contact:
Somero Enterprises, Inc. www.somero.com
Jack Cooney, CEO +1 239 210 6500
John Yuncza, CFO
Howard Hohmann, EVP Sales
finnCap Ltd (NOMAD & Broker)
Matt Goode (Corporate Finance) +44 (0)20 7220 0500
Carl Holmes (Corporate Finance)
Tim Redfern (ECM)
Alma PR (Financial PR Advisor) somero@almapr.co.uk
Rebecca Sanders-Hewett +44 (0) 2038 659 667
Susie Hudson
Sam Modlin