6th May 2021 14:14
(Alliance News) - Somero Enterprises Inc on Thursday announced it expects to exceed guidance for 2021, after strong trading in the US and signs of improving activity in Europe and Australia.
Shares were up 11% to 466.89 pence in London on Thursday afternoon.
The concrete levelling equipment specialist said it now expects annual revenue of around USD100.0 million, after better than expected trading in the first four months of the year. This would be up 13% from USD88.6 million for 2020. Revenue growth for 2021 was originally forecast in the mid-single digit percentage range.
An adjusted earnings before interest, tax, depreciation and amortisation of USD31.0 million is expected, 19% higher than the USD26.1 million posted for 2020 and above the modest growth for 2021 forecast in March. Somero also anticipates the year-end cash position to improve.
The Fort Myers, Florida-based firm said rising sales were partly driven by demand for new warehousing, required to keep pace with the growth in e-commerce.
"Despite the lingering effects of Covid-19 restrictions, early positive 2021 performance in Europe and Australia supports the expectation for meaningful contributions to growth from both regions in 2021," Somero said.
"The company continues to work on a pipeline of new products targeted to expand the company's addressable market and anticipates release of an additional new product before the end of 2021."
By Will Paige; [email protected]
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