News blog
Somero Enterprises Inc
- BY: Andrew Hore |
- POSTED: 09/09/2008 |
Somero Enterprises has reported interim figures in line with its warning earlier this year.
US-based Somero supplies laser concrete screening equipment that is used to ensure that the concrete floors of warehouses and other buildings are flat so its revenues are dependent on construction activity. Trading was weak in North America but it continued to boom in Europe. Latin and South American markets were also stronger in the first half. International sales increased by 14%.
Revenues fell from $34.4m to $31m in the six months to June 2008. North America accounted for less than half the company’s revenues for the first time – they were 59.2% in the first half of 2007.
Profits slumped from $5.4m to $3.1m but the business remains highly cash generative. Net debt was reduced from $11.1mto $9m over the six month period. The interim dividend was maintained at 3c a share.
New products will be launched in the second half. They will be smaller so they can be used on smaller shops and in high rise buildings.
The costs savings implemented in the first half will show through in the second half of 2008.
Newer areas such as the Middle East and China will take a bit longer to build up revenues.
The shares fell 2p to 39.5p, valuing Somero at £12.3m. House broker Collins Stewart expects full year earnings per share to fall from 17.6p to 10.2p. That means that the shares are trading on less than four times forecast earnings. A maintained full year dividend would leave the shares yielding around 7.7%.
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