Somero Enterprises Inc. Trading Update (8834S)
14 July 2020 - 4:00PM
UK Regulatory
TIDMSOM
RNS Number : 8834S
Somero Enterprises Inc.
14 July 2020
14 July 2020
Somero Enterprises, Inc.
("Somero" or the "Company")
Trading Update
Somero is pleased to provide an update on trading ahead of its
interim results announcement scheduled to be released on Wednesday,
9 September 2020.
Trading for H1 2020 ended in line with the level detailed in the
Company's announcement of 5 June 2020, approximately 25% below
levels required to achieve the market expectation at the start of
the year of US$ 90.0m in 2020 revenues.
Following the cost reduction actions implemented by Management,
the Company remains profitable and cash generative at current
volumes and the Board remains confident the Company would continue
to be cash generative even in the scenario where revenues fall an
additional 20% from current levels. The cost saving actions taken
by Management were specifically designed to not impact investment
in new product development, a key element to the Company's
long-term growth strategy. New product development activity remains
at a high level and the Company continues to add to its product
offering. The latest examples are the SRS-4 compact Boom Laser
Screed(R) Machine launched in H1 2020 that has quickly gained
encouraging market interest and contributed meaningfully to H1 2020
sales, and the introduction in late June 2020 of the innovative
Somero Broom + Cure(TM) machine that replaces manual effort in the
broom and cure process on exterior concrete slabs with efficient,
consistent machine application.
The Company's financial position remains secure, highlighted by
net cash as at 30 June 2020 of at least US$ 28.0m, exceeding the
conservative US$ 24.0m net cash expectation outlined in the 5 June
2020 update. The strong operational cash flow performance reflects
effective working capital management driven by healthy trade
receivable collections to end the first half of the year.
The uncertainty around the scale, duration and impact of the
COVID-19 pandemic on Somero's end markets in the non-residential
construction industry continues to make it difficult at this time
to provide further guidance on the Company's financial performance
in the rest of 2020 and beyond. While extended project backlogs
reported by our customers prior to the COVID-19 pandemic,
particularly in the US, indicate the non-residential construction
market was active and healthy entering this period, financial
performance for 2020 and beyond will depend on a number variables
over which the Company has no control. The Company will provide
updates as appropriate regarding the outlook for the business once
greater clarity is attained.
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)
Kate Bannatyne (Corporate Finance)
Tim Redfern (Corporate Broking) +44 (0)20 7220 0500
Alma PR (Financial PR Advisor) somero@almapr.co.uk
Rebecca Sanders-Hewett +44 (0)20 3405 0205
Susie Hudson
Sam Modlin
David Ison
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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