Somero Enterprises Inc. Trading Update (7327T)
January 10 2017 - 2:00AM
UK Regulatory
TIDMSOM
RNS Number : 7327T
Somero Enterprises Inc.
10 January 2017
10 January 2017
Somero Enterprises, Inc.
("Somero" or the "Company")
Trading Update
Somero(R) is pleased to provide the following update on trading
for the financial year ended 31 December 2016.
In the six months since 30 June 2016, the Company continued to
deliver profitable growth and cash generation. Due to a strong
finish to 2016 combined with continued margin improvement, the
Board is pleased to announce the Company expects to report revenue
slightly ahead of current market expectations and to report EBITDA
comfortably ahead of current market expectations for the full year.
In addition, given the strong cash generation of the business, the
Company expects to report net cash as of 31 December 2016 that is
significantly ahead of market expectations.
Demand in the second half of 2016 remained robust across our
core product range with particularly strong interest in recently
launched new products, the large line S-10A and small line S-940
Laser Screed(R) machines. Also contributing significantly to growth
during the period were sales of large line S-15 Laser Screed
machines, STS--11M spreaders, 3-D Profiler Systems(R), and parts
driven by the high utilization of our installed base of equipment
by customers.
Geographically, second half performance in our core markets was
solid with Europe contributing significantly to growth, North
America contributing satisfactorily to growth and trading in China
remaining healthy. Also, as expected, trading in Latin America and
the Middle East improved considerably in the second half of 2016,
with Australia also contributing solidly to growth during the
period. In Southeast Asia, India, Scandinavia, Korea, and Russia,
while trading levels were in line with or down somewhat from the
prior year, interest levels in our products remain encouraging in
each of these territories and we see considerable growth
opportunities going forward.
Following record results in 2016, the Board is confident in the
Company's ability to deliver another year of profitable growth in
2017 based on healthy market conditions in our core markets and
encouraging growth opportunities in our other territories. The
Board's confidence is further supported by encouraging pro-growth
corporate tax reform and fiscal policy proposals in the United
States. In recognition of Somero's financial strength, strong cash
generation, and our confidence in the 2017 outlook, the Board is
pleased to announce that it has approved an increase to the Company
dividend payout ratio to 40% of adjusted net income. This is an
increase from the previous 30% payout ratio in effect for 2015. The
change becomes effective with the final 2016 dividend to be
announced with Somero's final results for the year ending 31
December 2016 which is scheduled to be released on 15 March
2017.
In addition, the strong cash generation of the business has
built up cash reserves in excess of the Board's targeted net cash
level of US$ 10.0m. The Board plans to review its cash position
alongside cash requirements for current business needs and future
investment during the first half of 2017. The Board will then
assess the level of excess cash that may be subject to distribution
back to shareholders through a special dividend later in 2017.
The information communicated in this announcement
contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU)
No. 596/2014.
Enquiries:
Somero Enterprises, Inc. www.somero.com
Jack Cooney, CEO +1 239 210 6500
John Yuncza, CFO
Howard Hohmann, EVP Sales
finnCap Ltd (NOMAD and Broker)
Matt Goode (Corporate Finance) +44 (0)20 7220
0500
Carl Holmes (Corporate Finance)
Tim Redfern (Corporate Broking)
Redleaf Communications Ltd (Financial PR Advisor)
somero@redleafpr.com
Rebecca Sanders-Hewett +44 (0)20 7382 4730
David Ison
Susie Hudson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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