Somero Enterprises Inc. AGM Statement (0897H)
June 05 2017 - 2:00AM
UK Regulatory
TIDMSOM
RNS Number : 0897H
Somero Enterprises Inc.
05 June 2017
5 June 2017
Somero Enterprises, Inc.
("Somero" or the "Company")
AGM Statement
Somero Enterprises, Inc. is pleased to provide an update on
trading ahead of its Annual General Meeting to be held on Tuesday 6
June 2017.
Trading Update
Somero is pleased with the broad contributions to the Company's
growth in H1, which has been driven particularly by strong trading
in Europe, continuing the momentum in the territory from 2016, and
by solid contributions from the Middle East, Latin America and our
Rest of World territories. In North America, while H1 trading in
2017 has been flat compared to the prior year due in part to poor
weather across the US that has delayed numerous project starts and
ongoing political uncertainty, we remain encouraged by healthy
market fundamentals in the US that are reflected by the high-level
of activity and extended project backlogs our customers continue to
report. In China, trading at the start of the year has been slow
but we have seen signs of improvement and early traction with our
new entry-level products.
On a product basis, sales of Ride-On screeds and the recently
launched 3(rd) generation 3-D Profiler System continue to be
strong, and the Company is also encouraged by early opportunities
seen with the recently launched S-158 in China and the SP-16
Concrete Hose Puller. The mix of sales of our other products is
consistent with our expectations.
The Company continues to make long-term investments that support
future growth by hiring additional sales, customer support, and
engineering personnel in 2017. The added headcount creates a need
for additional office space in our Fort Myers, Florida
headquarters. As a result, the Board has approved plans to build a
US $1.3M expansion to the Company's Fort Myers headquarters to
accommodate planned growth. The building project will be completed
in H1 2018, with the majority of the cost expended in 2018.
The Company remains encouraged by the positive trading
environment across our footprint, the growth opportunities visible
in North America, Europe, Middle East, Latin America and our Rest
of World territories, and the prospects for improvement in China
for the remainder of 2017. This constructive, positive environment,
combined with continued solid margin performance, cost management,
and healthy operating cash flow generation means the Company's
trading to date is in-line with market expectations for the full
year ending 31 December 2017.
Special Dividend
As announced in its 2016 Results Announcement on 15 March 2017,
the Board has been reviewing the Company's net cash position
alongside the cash requirements for current business needs and
future investment. Following completion of this review, the Board
is pleased to announce that it will be distributing $7.5m in the
form of a special dividend representing a special dividend per
share of $0.133 (the "Special Dividend"). The quantum of the
Special Dividend reflects the Board's confidence in the medium-term
outlook for the Company, and was based on the Board's consideration
of a number of factors including the Company's 2016 year-end net
cash balance of $20.2m, the Company's intention to maintain an
appropriate net cash buffer combined with operational and
non-operational capital requirements. The Special Dividend will be
paid on 14 August 2017 to shareholders on the register as at 28
July 2017.
The Board will continue to maintain an appropriate net cash
buffer for the Company, the quantum of which will depend on the
Board's view of the outlook for the Company and its end markets.
The Board will consider future Special Dividends if the Company's
net cash position moves materially ahead of the Board's view of an
appropriate net cash buffer.
For further information, please contact:
Somero Enterprises, Inc. www.somero.com
Jack Cooney, CEO +1 239 210 6500
John Yuncza, CFO
Howard Hohmann, EVP Sales
finnCap Ltd (NOMAD & Broker)
Matt Goode (Corporate Finance) +44 (0)20 7220 0500
Carl Holmes (Corporate Finance)
Tim Redfern (Corporate Broking)
Redleaf Communications Ltd (Financial PR Advisor) somero@redleafpr.com
Rebecca Sanders-Hewett +44 (0)20 7382 4730
David Ison
Susie Hudson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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