28 Jun 2011 07:00
Press Announcement |
28 June 2011 |
Somero Enterprises, Inc ® ('Somero' or 'the Company') |
AGM statement |
At Somero's annual general meeting to be held later today Larry Horsch, Somero's chairman, will make the following statement on the Company's development and on current trading.
2010 was an important year for Somero. Steady progress on cost control and sales execution resulted in the first increase in EBITDA since 2007. In addition, the strong open relationship with our bankers enabled the Company to amend and extend its loan facility out until July 2013. This has enabled management to focus on implementation of Somero's strategic plan, successfully introduce new products into the market and maximize opportunities from investments in emerging markets.
Market conditions in 2011 have continued to present opportunities as well as challenges. There have been encouraging trends in the build up of customer enquiries and spare parts sales, indicating an important increase in the overall level of usage of Somero's machines by our customers. The economic environment in North America and in Europe, however, means that there are still delays in converting sales of new machines, especially at the larger end of our product range. This, together with the stronger relative sales performance in our refurbished products, has led to lower gross margins than expected, but management expect this to recover going forward.
Management continue to deliver exceptional focus on every available sales opportunity, whilst retaining a very tight control on costs. With overall market conditions remaining tough and ongoing volatility on a month-by-month basis, Somero is taking the precautionary measure of a further cost restructuring process, which is expected to reduce overall group costs by $0.4m in 2011 and circa $1m in each full year thereafter.
We look forward to reporting on Somero's development at the time of our Interim results this autumn and continue to position the Company to benefit from the recovery in our markets when it comes. |
Enquiries |
Somero Enterprises, Inc |
Jack Cooney / Mike Niemela |
+00 1 239 210 6507 |
Hawkpoint Partners Limited |
Chris Robinson / Serge Rissi |
+44 (0) 20 7665 4500 |
Collins Stewart Europe Limited |
Piers Coombs |
+44 (0) 20 7523 8000 |
Somero (SOM)