Trading Update

RNS Number : 8099H

Somero Enterprises Inc.

17 July 2012

 



PRESS ANNOUNCEMENT
17 July 2012
Somero Enterprises, Inc®
Trading Update
Somero Enterprises, Inc (the "Company") is pleased to announce that the strong trading experienced by the Company in the first quarter of 2012 has continued into the second quarter. Revenues for H1 2012 are now expected to be some 50% ahead of those reported in H1 2011. As a result of this increased sales volume, EBITDA achieved in H1 2012 is expected to be slightly ahead of the market's forecasts for the Group's entire full year performance.
North America showed strong growth in the first half, benefitting from mild weather conditions and a benign economic environment. Performance during this period from the Chinese business was also strong, reflecting the investment made by the Company in the region. Sales from the Company's new product the S-840 and the SXPD large line machines were significantly higher than in the same period last year. Whilst the Company still anticipates strong trading from these regions/products, it is likely that respective rates of growth are slower in the second half of the year consistent with previous years.
With healthy demand continuing, the Company is implementing plans to add some costs in new product development, training, marketing and sales initiatives to take full advantage of a stronger sales environment. This is intended to put Somero in the best position to deliver growth in the medium and longer term, as well as to sustain the shorter term recovery that is evident in 2012. At this stage, the Board expects that the increased costs will lead to second half profitability being lower than the first half, albeit that the outturn for the full year is still expected to be substantially ahead of current forecasts for 2012.
For further information, please contact:
Somero Enterprises, Inc Jack Cooney, CEO Mike Niemela, CFO		Tel: [phone]
Canaccord Genuity Hawkpoint (Nominated Adviser) Chris Robinson Serge Rissi		Tel: [phone]
Canaccord Genuity Limited (Broker) Piers Coombs Seb Jones		Tel: [phone]

 

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