Somero is pleased to provide an update on trading ahead of its Annual General Meeting to be held on Tuesday 7 June 2016.
In its annual results announcement on 1 March 2016, Somero indicated healthy trading momentum in the US had carried forward into 2016 driven by demand for replacement equipment, fleet additions, technology upgrades, and new products. Somero is pleased to report that overall business is progressing well in 2016 with positive trading in the Company’s core US, European and Chinese markets. In the Latin America, Southeast Asia, Korea and Middle East territories, while year-to-date trading is somewhat below previous year levels, the Company remains encouraged by solid activity in these markets and expects improvement over the rest of the year.
On a product basis, sales of our new products, the S-10A and S-940, have been key contributors to growth, along with sales of the 3-D profiler system, S-15, and STS-11m. In addition, driven by increased customer project activity, sales of parts and services have been particularly strong in 2016 to-date.
As previously announced, on 25 April 2016 Somero opened its new Global Headquarters and Training Facility, providing a state-of-the-art venue for product demonstration and customer training. With construction complete the Company expects capital expenditure in the second half of 2016 to revert to comparable historical levels.
This positive trading environment, together with margin improvement due to price increases and cost controls, and solid operating cash flow generation means the Company's overall results are tracking comfortably in-line with market expectations for the full year ending 31 December 2016.