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Somero Enterprises Inc on Monday said it expects results for this year to be in line with the guidance it provided with its latest annual report in March. The Fort Myers, Florida-based company, which provides equipment and training for advanced concrete floor placement, gave the optimistic trading update ahead of its annual general meeting on Tuesday. Somero said that in the first five months of 2024, up to May 31, ‘the health of the non-residential construction market remained consistent and therefore trading has been tracking as expected’. Somero therefore expects cash generation, revenue and profitability to be in line with the full-year guidance from its annual report for 2023, which was published in early March. At that time, Somero commented: ‘Looking ahead, the outlook is positive, with customers continuing to report high levels of activity and healthy backlogs. ‘While the timing and extent of a return to more normal trading conditions in the US remains challenging to predict, our confidence in the long-term prospects for our home market remains resolute.’ Somero said it expected to deliver strong revenue, profit and cash flow to shareholders in 2024, ‘supported by a strong balance sheet with no outstanding debt and full availability of its $25.0 million credit facility’. It anticipated revenue ‘comparable with’ the $120.7 million it reported for 2023, down 9.7% from $133.6 million in 2022, and ‘a commensurate level of year-end 2024 cash’ compared with $33.3 million as of December 31. Somero also said earnings before interest, tax, depreciation and amortisation would be ‘slightly lower’ than 2023 levels, having reported a 21% fall in adjusted Ebitda to $36.5 million. This reflects the ‘modest incremental investment including the new Belgium service and training centre and the annualised impact of strategic resources added in 2023,’ the firm explained. Shares in Somero were down 3.5% at 340.11 pence each in London late on Monday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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