Somero lifts expectations as momentum continues into second half

The AIM-traded firm had reinstated its guidance on 9 September, indicating revenues were expected to be around $75m, with adjusted EBITDA of about $19m, and ending net cash approximating $20m.

It said on Thursday that, based on the “strong, profitable” trading and “healthy” cash generation in the second half, it now expected 2020 annual revenues to be around $80m, with adjusted EBITDA coming in at about $21m, and ending net cash of approximately $26m.

“The improved performance has been led by healthy trading in an active US market, strong contributions from new products - particularly the ‘SRS-4’ and the recently-launched ‘Broom+Cure’, and an increase in revenues from the SkyScreed family of products due to an easing of job-site restrictions in the second half of 2020,” the board said in its statement.

“The strong cash generation in the second half is a direct result of effective working capital management and healthy cash collections.

“Performance in the company's non-US markets, and the remaining products in the company's portfolio, are tracking generally in line with previous expectations.”

Somero said it would provide a further update on the 2020 financial year in January, consistent with prior years.

At 1233 GMT, shares in Somero Enterprises were up 22.94% at 284p.