8th Oct 2013 09:17
LONDON (Alliance News) - Somero Enterprises Incorporated Tuesday said it has seen better-than-expected growth in orders since it published its interim results last month and now expects profitability in the second half to exceed the first, reversing its previous guidance.
Somero said it expects full-year profit to be 10% to 20% above the latest market estimates.
The company, which designs equipment for concrete flooring, said it had seen strong demand for its laser-screed equipment range, particularly in the US, where it is beginning to see sales pick up.
"Purchasing our products does typically mean a significant capital investment decision for our customers, and this new dynamic reflects the company's view that confidence is continuing to grow in a steady economic recovery" Somero said.
Somero also said business has continued to develop internationally, with China now an area it will be targeting.
As sales have increased the company said it now believes earnings before interest, tax, deprecation and amortisation (EBITDA) will be at least 10% above the latest market estimates post publication of its interim results.
If trading conditions in October and November continue as they have September, EBITDA could be 20% ahead.
Somero shares were trading at 90.50 pence, up 15%, Tuesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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