The Group has seen healthy growth across the board in 2017, helping it report record results.
Companies: Somero Enterprises, Inc.
Somero Enterprises (LON: SOM), the manufacturer of laser-guided concrete level machinery has released a promising update this morning sending shares up in early trading.
Management of the US-based, AIM-listed company said December had been its strongest trading month of the year, boosting its H2 17 numbers leading to upgrades in its forecasts...
"As a result of the strong H2 performance, the Board now expects 2017 revenues will be slightly ahead of market expectations of $84.7m, EBITDA will be comfortably ahead of market expectations of $26.0m driven by the volume increase and effective operating cost management, while net cash at 31 December 2017 is expected to be not less than $18.5m, well ahead of market expectations of $16.5m."
Key contributors to its healthy growth last year include an extra $1m from new products in its US operations, bolstered by a $5m uplift in sales outside its native US.
Key markets outside the US include Europe, India and China, whilst growth in Latin America and the Middle East was down on the same period in the year prior.
Trump's cut to corporation tax in the US which was approved by the Senate last month, is expected to positively impact the Group's earnings in future years. Reduced from 35% to 21%, just how much of an impact this will have is still "subject to many complex provisions".
With the news of "record results" and a positive outlook for the year ahead, shares in SOM jumped 8% in early trading on Friday.
Looking towards the next 12 months, SOM has a forecast earnings multiple 13x, a PEG ratio of 0.66 and a dividend yield of 3%. The Group is rated 95/100 on Stockopedia's useful StockRank formula and has a current Market Cap of £192m.
