Somero Enterprises, Inc.
(“Somero” or “the Company”)
Trading Update
Raising guidance due to stronger than anticipated trading in the US to end H1
Somero® is pleased to provide an update on trading for the current financial year, ending 31 December 2021 (“FY 2021”) following the end of its first half ended 30 June 2021 (“H1 2021”).
The Board is pleased to report that due to stronger than anticipated trading in the US to end H1 2021 and with this momentum carrying over to begin H2 2021, it now expects to exceed previous guidance for FY 2021 established in the 6 May 2021 trading update. The Company's previous FY 2021 guidance indicated revenues were expected to approximate US$ 100.0m, adjusted EBITDA would approximate US$ 31.0m and net cash would improve consequentially from the original US$ 27.4m target established in our 10 March 2021 final FY 2020 results statement. The Board now expects FY 2021 annual revenues will approximate US$ 110.0m, adjusted EBITDA will approximate US$ 35.0m, and year end net cash is expected to exceed US$ 33.0m.
Group H1 2021 trading has been stronger than previous years with trading in North America in the last two months of H1 2021 having exceeded our previous expectations. This higher than anticipated momentum is carrying over to begin H2 2021, with customer workloads at high levels and project backlogs extending into 2022. This is due in part to catch up on projects previously slowed by COVID restrictions and is also supported by a healthy and active US non-residential construction market. H1 2021 trading in the US reflected strong contributions from products across the portfolio but with particularly good performance in the boomed screed category, driven by the demand for new warehousing required to keep pace with growth in e-commerce operations.
H1 2021 performance in Europe and Australia was in line with the expectation for meaningful contributions to growth from both regions in FY 2021 and all other regions performed as expected. H1 2021 trading of new products was also in line with the expectation to contribute meaningfully to growth in 2021. The Company continues to work on a pipeline of new products targeted to expand the Company's addressable market and anticipates release of an additional new product before the end of 2021.
Somero's interim results announcement is scheduled to be released on 8 September 2021.