Trading update
23 November 2009 - 6:00PM
UK Regulatory
TIDMSOM
RNS Number : 9001C
Somero Enterprises Inc.
23 November 2009
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| PRESS ANNOUNCEMENT |
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| 23 November 2009 | |
| | |
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| Somero Enterprises, Inc |
| ("Somero") |
| |
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| Trading update |
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| 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. |
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| |
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| 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." |
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| Enquiries | |
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| | |
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| Hawkpoint Partners | +44 (0)20 7665 4500 |
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| Christopher Kemball / Chris Robinson | |
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| Collins Stewart | +44 (0)20 7523 8000 |
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| Piers Coombs | |
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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