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Somero Enterprises Inc

  • BY: Andrew Hore |
  • POSTED: 24/06/2009 |

Somero Enterprises Inc has raised $5.5m to help pay off a $10m debt with RBS Citizens.

The share placing was undertaken at 15p a share. At 17.5p a share, the existing share capital of Somero is valued at £6m.

US-based Somero supplies laser concrete screening equipment that is used to ensure that the concrete floors of warehouses and other buildings are flat. It has renegotiated the terms of its covenants and this will give it increased flexibility. 

Net debt fell from $11.1m to $9.7m at the end of 2008. Revenues fell by one-fifth to $51.9m - 50% were outside of the US - while pre-tax profits slumped by four-fifths to $2.2m.

Operating costs are being reduced. They were $24m in 2008 and will more than halve to $11m this year and fall to $10m in 2010. Employee numbers have been reduced and salaries cut by 10%.

European and Middle East sales are below budget but US sales are in line with expectations. In contrast, sales in the rest of the world are ahead of expectations.

Management says it will consider paying dividends when it has surplus cash in the future.

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