(Alliance News) – Somero Enterprises Inc. said Monday it expects this year’s results to be in line with the guidance it provided in its last annual report in March.
The Fort Myers, Fla.-based company, which provides equipment and training for placing concrete floors, provided an upbeat update ahead of its annual general meeting on Tuesday.
Somero said that during the first five months of 2024, through May 31, “the health of the non-residential construction market has remained consistent and, as a result, transactions have followed the expected course.”
Somero therefore expects cash generation, turnover and profitability to be in line with the full-year forecasts in its 2023 annual report, published in early March.
Somero commented at the time: “Looking forward, the outlook is positive, with customers continuing to report high levels of activity and healthy order books.
“While it is difficult to predict the timing and extent of a return to more normal business conditions in the United States, our confidence in the long-term prospects of our domestic market remains unwavering.”
Somero said it expects to deliver strong revenues, profits and cash flow to shareholders in 2024, “supported by a strong balance sheet with no outstanding debt and the full availability of its 25.0 credit facility millions of dollars”.
It forecast revenues “comparable” to the $120.7 million it reported for 2023, down 9.7% from $133.6 million in 2022, and “a commensurate level of cash at the end of 2024”, compared to $33.3 million as of December 31.
Somero also said earnings before interest, taxes, depreciation and amortization would be “slightly lower” than 2023 levels, having reported a 21% decline in adjusted Ebitda to $36.5 million. This reflects “modest additional investment, including the new service and training center in Belgium and the annualized impact of strategic resources added in 2023,” the company explained.
Somero shares were down 3.5% at 340.11 pence each in London late Monday morning.
By Emma Curzon, journalist at Alliance News
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