Trading update today (http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12416088.html) and the key line says
"This positive trading environment means that the Company's overall results are tracking slightly above current market expectations for the full year ending 31 December 2015."
I continue to like and own shares in this company given strong growth, a very experienced management team and relatively undemanding valuation of PE c11.5x 2015, 11x 2016. StockRank at 98 is also attractive but I don't think this fully captures the cyclical nature of this business in the Quality score, where Somero Enterprises Inc (LON:SOM) rates over 90%...
Here is a refresher of my write up of the company's fundamentals earlier this year: http://www.stockopedia.com/content/somero-good-por...
The impact of the trading statement should not be underestimated. It's still only halfway through the year but reading between the lines the Company was behind its internal plan at the time of the AGM due to a slow start in China. Management hinted at the AGM to the assembled masses (two of us.....) that enquiries had picked up strongly In May for the China outfit. Therefore today's statement that the company is tracking slightly ahead of market expectations is welcome. I do remind everyone this is a very operationally geared company and that if the trading environment worsens profits will get impacted. However the trading environment remains good, so I will be sticking with my position.
VegPatch
