Somero is pleased to report that trading in June was stronger than both the previous month and the prior year comparison. This strong performance, together with the continuation of the positive global trading environment, margin improvement and solid operating cash flow generation, has underpinned a positive outlook for H2 2017 and the Group's continued expectation that trading for the full year will be in line with market expectations, as highlighted in the update provided on 5 June 2017.
On a regional basis, June 2017 trading activity in North America was at the highest levels of the year as weather conditions improved and projects commenced. H1 2017 trading in North America will show a slight reduction in trading from prior year levels given that H1 2016 trading was particularly positive. Looking ahead the Company remains encouraged by the healthy US commercial construction market, extensive project backlogs being experienced by its customers and the high level of activity that is carrying over into H2 2017. H1 2017 trading in Europe has been exceptionally strong, significantly increasing over the prior year, driven by broad-based geographic contributions. Latin America and the Rest of World territories were also significant contributors to growth in H1 2017 with trading significantly increased when compared to the prior year. Trading in the Middle East ended H1 2017 slightly down from the prior year as a result of a number of opportunities in this territory having been carried over into the H2 2017. In China, June trading was also at the highest level of the year and despite H1 2017 trading falling below the prior year, the Company expects improvement in the second half.
Jack Cooney, CEO of Somero, said:
“With improved margins and positive cash flow generation, momentum in H1 2017 has continued and we are particularly pleased to see that our customers anticipate a high level of activity going into the second half of the year. We look to the period ahead with confidence and this is reflected in the Board's decision to pay a special dividend as announced in our previous trading update.”