23 Nov 2009 07:00
| PRESS ANNOUNCEMENT | |
| 23 November 2009 | |
| Somero Enterprises, Inc ® ("Somero") | |
| Trading update | |
| At the time of our interim results in September, we reported that trading was challenging and that we were continuing to focus on every sales opportunity, while maintaining tight controls on cost. Since then, trading has remained difficult, and we now anticipate that we will deliver a trading result for the year to 31 December 2009 below our expectations. We have, however, continued to manage our cost base, and have reduced annualised overheads by a further $1.5 million since September, principally through headcount reduction. Operating costs (excluding depreciation and amortisation) in 2009 and 2010 are expected to be around $10.8 million and $8.3 million respectively, down from a level of $24 million in 2008. There were no reductions in the salesforce or the product development area, both of which are critical to support future sales, and Somero will introduce two new products at the World of Concrete trade show in February of 2010. We have also restructured our European sales leadership to overcome the lagging sales performance in that area. | |
| Jack Cooney, Somero's CEO, stated that: "We anticipate market conditions will remain challenging in 2010 and future demand levels will continue to be unpredictable. Somero continues to be bank covenant compliant, however, and the cost reductions have reduced revenues required to pass the 2010 covenants to around $20 million. "Accordingly, the Board remains confident in the Group's strategy and its ability to benefit from the eventual market upturn. "In the meantime, we will continue to manage costs, and develop additional revenues in the faster growing economies such as China, Southeast Asia, and parts of South America." | |
| Enquiries | |
| Hawkpoint Partners | +44 (0)20 7665 4500 |
| Christopher Kemball / Chris Robinson | |
| Collins Stewart | +44 (0)20 7523 8000 |
| Piers Coombs | |
Somero (SOM)