REG - Somero Enterprises - Trading Update

Somero EnterprisesAnnouncement

19/07/2022 07:00

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RNS Number : 8731S  Somero Enterprises Inc.  19 July 2022

19 July 2022

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, 7 September 2022.

Driven by positive momentum from a highly active US non-residential
construction market, healthy market conditions and elevated activity levels in
the European and Australian markets, Group trading in H1 2022 ended higher
than the comparable H1 2021 period.

 

As expected, H1 2022 trading in North America remained strong, increasing from
H1 2021, reflective of customers with sizable workloads and project backlogs
that extend well into 2023.  The breadth and variety of project activity in
the US translated to healthy take rates across the Somero product portfolio
including continued, strong performance in the boomed screed category.

 

The European market was active during H1 2022, reflective of positive
non-residential construction market conditions and a busy customer base with
healthy, extended project backlogs.  While H1 2022 trading in Europe was down
compared to H1 2021, due largely to logistics challenges that delayed machine
shipments, based on the H1 2022 momentum and activity levels alongside
anticipated catch-up on shipment delays to start H2 2022, second half 2022
trading is anticipated to accelerate, and Europe is anticipated to contribute
to full-year 2022 growth.

 

H1 2022 trading in Australia was also strong, improving from H1 2021,
reflecting similar positive market conditions as the US and Europe, in line
with the expectation that the region will contribute meaningfully to 2022
growth.  Trading in all other regions also fell in line with expectations,
including in China where revenues were down compared to H1 2021 due to the
previously announced reduced Company focus on the region and the severe impact
of COVID restrictions.

 

New products, including the SkyScreed®, the S-PS50 Laser Screed® and the
Somero Broom+Cure(TM), contributed meaningfully to H1 2022 sales while the
Company continues to make good progress in identifying opportunities to
penetrate untapped market segments and with development of new solutions for
customers.

 

During the first six months of 2022, the also Company made substantial
progress with the Houghton, Michigan building expansion project anticipated to
be completed by the end of Q3 2022 and with adding new personnel necessary to
support future growth of the business, particularly in our primary US, Europe
and Australian markets.

 

While cognizant of the uncertain macro economic environment, the Board
continues to anticipate healthy trading to continue in H2 2022, a view
underpinned by direct feedback from customers in the US, Europe &
Australian indicating high workloads and extended project backlogs.  As such,
the Board is pleased to confirm 2022 results are anticipated to fall in line
with market expectations for revenues of approximately US$ 138.8m, EBITDA of
approximately US$ 47.7m, and year-end cash of approximately US$ 39.9m.

 

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 as retained as part of UK law by virtue of
the European Union (Withdrawal) Act 2018 as amended. Upon the publication of
this Announcement, this inside information is now considered to be in the
public domain.

 Enquiries:

 Somero Enterprises, Inc.

    www.somero.com
 (file:///C%3A/Users/Susie/Documents/Redleaf/www.somero.com)

 Jack Cooney, CEO

   +1 239 210 6500

 John Yuncza, President

 Vincenzo LiCausi, CFO

 Howard Hohmann, EVP Sales

 finnCap Ltd (NOMAD and Broker)

 Matt Goode (Corporate Finance)
                                     +44 (0)20 7220 0500

 Kate Bannatyne (Corporate Finance)

 Tim Redfern/Richard Chambers (ECM)

 Alma PR (Financial PR Advisor)
                                     somero@almapr.co.uk

 David Ison

           +44 (0)20 3405 0205

 Pippa Crabtree

 

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