Good morning!

Avacta (LON:AVCT)

  • Share price: 96.5p (unch.)
  • No. of shares: 68.4 million
  • Market Cap: £66 million

ShareSoc Growth Company Seminar

I'm glad to help to publicise a ShareSoc event. There is a very long Avacta comment thread here which is relevant to anyone watching  or holding this share.

It's on Wednesday 14th June in the City. Registration from 5pm.

Somero Enterprises Inc (LON:SOM)

  • Share price: 292.5p (-7%)
  • No. of shares: 56.2 million
  • Market cap: £164 million

AGM Statement

A detailed announcement from this US-based manufacturer of screeding equipment (tools which help to ensure that new concrete floors are perfectly flat, e.g. using lasers).

Trading so far this year is in line with market expectations:

The Company remains encouraged by the positive trading environment across our footprint, the growth opportunities visible in North America, Europe, Middle East, Latin America and our Rest of World territories, and the prospects for improvement in China for the remainder of 2017.  This constructive, positive environment, combined with continued solid margin performance, cost management, and healthy operating cash flow generation means the Company's trading to date is in-line with market expectations for the full year ending 31 December 2017.

There is no explicit mention of an "H2 weighting", but it sounds to me like there is an implication of same, as in the description above of an "improvement in China". Also from this earlier sentence in the statement:

In North America, while H1 trading in 2017 has been flat compared to the prior year due in part to poor weather across the US that has delayed numerous project starts and ongoing political uncertainty, we remain encouraged by healthy market fundamentals in the US that are reflected by the high-level of activity and extended project backlogs our customers continue to report.

The US is the core market for Somero and I think this very mixed set of circumstances may have spooked a few investors out of the stock today.

Some Stockopedia commenters have been discussing it on this thread, with a few existing holders top-slicing their position on this announcement.

I can see why they might do that: prior growth expectations are now potentially under threat. Somero's target has been to achieve $90 million in sales by 2018, which…

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