13th Mar 2019 11:39
LONDON (Alliance News) - Somero Enterprises Inc on Wednesday reported a sharp rise in revenue and profit, with both hitting record heights for the company.
In 2018, Somero Enterprises - which manufactures machines used to level concrete - said its pretax profit increased 13% to USD29.1 million from USD25.7 million in 2017.
The company's revenue increased 9.8% to USD94.0 million from USD85.6 million.
Somero said its profit and revenue in 2018 were records for the company. Somero explained its revenue growth was driven by its North America business, rising 12% to USD64.7 million. Somero's EMEA business reported a 6.9% increase in revenue in 2018 to USD17.1 million with the company's Rest of World business reporting a 3.4% growth to USD12.2 million.
In terms of core products, Somero's total boomed screeds sales grew 9.2% to USD39.2 million and ride-on screeds sales increased 23% to USD22.9 million.
"2018 was a record year for Somero by all measures. We delivered record revenues comfortably surpassing the 5-year strategic target we set out in 2014 to reach USD90.0 million in revenue by 2018. These revenues translated to record profits and cash flow from operations and allowed for the return of a significant amount of cash to shareholders in the period," said Chief Executive Jack Cooney.
Somero declared a final dividend of 13.5 US cents per share. Together, with the company's 5.5 cents interim dividend, Somero paid out a full year regular of 19.0 cents in 2018, 23% higher than the amount distributed in 2017.
The company also declared a supplemental dividend of 11.7 cents. Somero's dividend policy stipulates it will distribute 50% of its excess net cash over it year-end target of USD15.0 million. Somero ended 2018 with net cash of USD28.2 million.
Somero said it is "confident" of delivering another year of profit growth in 2019, saying it has "numerous meaningful growth opportunities".
Cooney added: "Somero begins 2019 financially stronger than ever and well-positioned to capture growth in new and existing markets with a strong product offering. With the opportunities that lie ahead and the steps we have taken to position the company for the future, I am confident the company will deliver strong results and dividends for our shareholders."
Shares in Somero Enterprises were up 3.3% Wednesday at 387.30 pence each.
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