Trading Statement
08 February 2010 - 6:00PM
UK Regulatory
TIDMSOM
RNS Number : 7908G
Somero Enterprises Inc.
08 February 2010
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| PRESS ANNOUNCEMENT |
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| 8 February 2010 | |
| | |
+--------------------------------------------+--------------------+
| Somero Enterprises, Inc |
| ("Somero") |
| |
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| Trading update |
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| The Board of Somero Enterprises, Inc, the North American |
| manufacturer of patented laser guided equipment used for the |
| spreading and levelling of high volumes of concrete for floors |
| in the construction industry, provides the following update on |
| trading for the year to 31 December 2009. |
| |
| As we announced in November 2009, trading has remained |
| difficult, and sales declined in the second half of 2009. |
| However, full year results were broadly in line with our |
| revised expectations and the business remained profitable. |
| |
| We continue to manage our costs aggressively and, following the |
| cost reduction programme in November, operating costs |
| (excluding depreciation and amortisation) in 2010 are expected |
| to be around $8.6 million, down from a level of $24 million in |
| 2008. |
| |
| Our lending bank remains supportive and we have re-set a 2009 |
| year-end covenant and quarterly covenants in 2010 so that they |
| are aligned with Somero's 2010 budget. |
| |
| We believe that the outlook for 2010 is more positive than the |
| previous year and we are expecting a gradual improvement |
| starting in the second half of the year. As we have previously |
| stated, we have not reduced headcount in the salesforce or the |
| product development area, both of which are critical to support |
| future sales, and Somero is currently introducing two new |
| products at the World of Concrete trade show. We are also |
| developing additional revenues in the faster growing economies |
| such as China, Southeast Asia and parts of South America. |
| |
| At the time of the placing announcement in June 2009, we stated |
| the Board's intention to put in place a new employee share |
| option scheme to retain and incentivise management. The |
| Remuneration Committee has developed a substitute Stock Option |
| scheme for management retention and incentivisation, which the |
| Board intends to discuss with major shareholders in the near |
| future. |
| |
| Preliminary results for the year ended 31 December 2009 will be |
| announced in May 2010. |
| |
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| Enquiries | |
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| | |
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| Hawkpoint Partners Limited | +44 (0)20 7665 4500 |
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| Chris Robinson / Serge Rissi | |
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| | |
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| Collins Stewart Europe Limited | +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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