Somero expects to exceed FY guidance on strong US trading momentum

Laser-guided machinery manufacturer Somero Enterprises said on Thursday that it now expects to exceed previous full-year guidance as a result of "stronger than anticipated" trading momentum in the US during the first four months of the year.

Somero said previous guidance indicated revenues were expected to grow in the "single mid-digit percentage range" to approximately $100.0m, while adjusted underlying earnings were projected to grow "modestly" to roughly $31.0m.

The AIM-listed group said 2021 trading momentum in the US reflected an active market and "healthy sales" across its product portfolio, with a "particularly good" performance in the boomed screed category.

Despite the lingering effects of Covid-19 restrictions, Somero added that an early positive 2021 performance in Europe and Australia supported its expectation for "meaningful contributions" to growth from both regions in 2021.

"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," said Somero.

As of 1020 BST, Somero shares were up 11.72% at 471.44p.