Somero bags 'record' results after North America success

Somero Enterprises rewarded shareholders with a 23% increase in its total dividend as sales in North America accelerated to boost the concrete installation technology specialist's profits and revenues.

For the year ended 31 December, profit before tax increased 13% to $29.1m, on revenue up 10% to $94.0m.

Chief executive Jack Cooney said: "2018 was a record year for Somero by all measures. We delivered record revenues of $94.0m, comfortably surpassing the five-year strategic target we set out in 2014 to reach $90.0m 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."

Sales in North America, the AIM-listed company's largest market, grew 12% to reach $64.7m as a high-level of non-residential construction activity, along with a shortage of skilled labour, increased demand for Somero equipment and led to strong second-half trading in which sales grew 16% compared to the same six-month period the year before.

Meanwhile, sales were also "particularly strong" in the 'Rest of the World' after strong demand from Australia and India led to 36% growth to reach $6.4m.

The company had cash and cash equivalents of $28.2m at 31 December, up from $19.0m at the same point the year before, while the full year regular dividend payment to shareholders of 19.0 US cents per share, up 23% over the year before.

"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," said Cooney.

Somero Enterprises' share price was up 3.38% at 387.66p at 1044 GMT.