7th Apr 2015 09:05
LONDON (Alliance News) - Somero Enterprises Inc Tuesday reported growth in profit and revenue in 2014, largely driven by sales growth in North America and China, which it said was resulted from "continued efforts to seek improvement" in its products, processes, services and people.
The company, which makes precision concrete levelling and placing equipment, reported a pretax profit rise of 91% in the year ended December 31 to USD12.4 million from USD6.5 million the year before. Revenue increased 32% to USD59.3 million from USD45.1 million.
Sales in North America grew by 46%, while they grew by 44% in China and 20% in Europe. Somero said its operations in Australia and Southeast Asia also experienced revenue growth, but sales in Russia and the Middle East declined, which the company blamed on political upheaval in the two regions.
Somero introduced the S-485 Laser Screed in October, for which it said it has received an "outstanding response", having contributed USD0.9 million to its 2014 sales. The company said it continues to focus on product development in 2015.
It has also entered into an agreement to purchase land to build a new global headquarters, having concluded that the current base in Fort Myers, Florida is not large enough to accommodate future growth. The new land is expected to cost up to USD4 million spread over 2015 and 2016.
Somero said it will increase its dividend payout ratio to 30%, resulting in a final dividend of 4 cents, for a total dividend of 5.5 cents per share, which it said represents a 150% increase on the year before.
"As we endeavour to improve our culture, mission, and vision, we are confident that the strategic direction we have chosen is sound, and our excitement only grows as we plan to bring new products and services to the market in the coming years," Chief Executive Jack Cooney said in a statement.
"We will continue to accelerate and become ever more competitive, thus ensuring Somero's continued success and ability to attain a global leadership position. We are confident in our platform and our ability to drive the execution of our plans, guaranteeing our investments in innovation, people, systems and markets, deliver profitable growth, and improve return on invested capital," Cooney added.
Shares in Somero were trading up 7.4% at 124.00 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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