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Somero lifts expectations as momentum continues into second half
19th Nov 2020 12:36
(Sharecast News) - Concrete levelling technology company Somero updated the market on its trading on Thursday, reporting that as a result of positive trading momentum from the end of the first half continuing into the second half of 2020, it now expected to exceed its previous reinstated expectations for the year ending 31 December.
The AIM-traded firm had reinstated its guidance on 9 September, indicating revenues were expected to be around $75m, with adjusted EBITDA of about $19m, and ending net cash approximating $20m.
It said on Thursday that, based on the "strong, profitable" trading and "healthy" cash generation in the second half, it now expected 2020 annual revenues to be around $80m, with adjusted EBITDA coming in at about $21m, and ending net cash of approximately $26m.
"The improved performance has been led by healthy trading in an active US market, strong contributions from new products - particularly the 'SRS-4' and the recently-launched 'Broom+Cure', and an increase in revenues from the SkyScreed family of products due to an easing of job-site restrictions in the second half of 2020," the board said in its statement.
"The strong cash generation in the second half is a direct result of effective working capital management and healthy cash collections.
"Performance in the company's non-US markets, and the remaining products in the company's portfolio, are tracking generally in line with previous expectations."
Somero said it would provide a further update on the 2020 financial year in January, consistent with prior years.
At 1233 GMT, shares in Somero Enterprises were up 22.94% at 284p.
The AIM-traded firm had reinstated its guidance on 9 September, indicating revenues were expected to be around $75m, with adjusted EBITDA of about $19m, and ending net cash approximating $20m.
It said on Thursday that, based on the "strong, profitable" trading and "healthy" cash generation in the second half, it now expected 2020 annual revenues to be around $80m, with adjusted EBITDA coming in at about $21m, and ending net cash of approximately $26m.
"The improved performance has been led by healthy trading in an active US market, strong contributions from new products - particularly the 'SRS-4' and the recently-launched 'Broom+Cure', and an increase in revenues from the SkyScreed family of products due to an easing of job-site restrictions in the second half of 2020," the board said in its statement.
"The strong cash generation in the second half is a direct result of effective working capital management and healthy cash collections.
"Performance in the company's non-US markets, and the remaining products in the company's portfolio, are tracking generally in line with previous expectations."
Somero said it would provide a further update on the 2020 financial year in January, consistent with prior years.
At 1233 GMT, shares in Somero Enterprises were up 22.94% at 284p.