11th Mar 2020 09:56
(Alliance News) - Concrete-levelling equipment maker Somero Enterprises Inc on Wednesday reported an annual revenue fall but said its earnings in 2020 will be in line with market expectations.
Shares in the company were 12% higher at 239.00 pence each in London on Wednesday morning.
In 2019, revenue fell 5.0% to USD89.3 million from USD94.0 million, with pretax profit down 7.2% to GBP27.0 million from GBP29.1 million.
Adjusted earnings before interest, tax, depreciation and amortisation fell 6.9% to USD28.7 million from USD30.8 million.
Somero said it had a challenging first half, but reported a "strong and profitable trading ahead of the board's expectations" in the second half.
Its ordinary dividend per share was cut by 1.3% to USD0.1875 from USD0.190. Somero also chopped its supplemental dividend, by 34%, to USD0.077 per share from USD0.117.
Chief Executive Officer Jack Cooney said: "2019 was a highly profitable year for Somero and I am pleased with the results we have been able to achieve despite the headwinds we have faced. Notwithstanding record levels of rainfall during the first half of 2019 in the US, a US-China tariff dispute and macro-economic uncertainly in Europe."
Somero added: "The board expects 2020 will be a profitable year with healthy cash generation. Revenues are expected to be comparable to 2019 with Ebitda broadly in line with 2019 and in line with current market expectations."
By Eric Cunha; [email protected]
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