Somero confident despite weaker set of full-year results
Updated : 12:15
Concrete levelling equipment specialist Somero Enterprises reported a weaker set of final results for 2023 on Tuesday, following declines in its core North American market.
The AIM-traded firm experienced a decrease in revenue of 9.7% to $120.7m, while adjusted EBITDA fell 20.7% to $36.5m, and net income followed with a 17.1% decline to $25.7m.
Despite the reductions, the company maintained a strong operational cash flow of $24.4m.
On the operational front, Somero said it maintained a strategic focus on international expansion, reporting significant growth in both the European and Australian markets.
Additionally, parts and servicing revenue experienced healthy increases throughout the year.
Somero said it invested in operations by relocating to a larger facility in Australia to accommodate growing demand, and expanding its footprint with a new site in Belgium.
The company relaunched the S-22EZ screed during the period, and had two additional new products scheduled for release in 2024.
One of the launches included Somero's first electric model, the S-940e, positioning the company to meet evolving industry demands.
Chief executive officer Jack Cooney expressed a mix of satisfaction and optimism.
“To have successfully navigated a challenging year and delivered against market expectations set in June is a good result, and I am proud of how our employees around the world rose to the challenge,” he said.
“While trading in the US was subdued by factors outside of our control, the underlying market remains active and healthy.”
Looking ahead, Coomey said the outlook was positive, with customers continuing to report high levels of activity and healthy backlogs.
“We will continue to build on our success overseas in 2024 while bolstering our product offering, remaining agile, adaptive, and optimistic about growth opportunities available to us globally.”
At 1215 GMT, shares in Somero Enterprises were down 4.68% at 329.8p.
Reporting by Josh White for Sharecast.com.