Somero Enterprise Share Discussion Threads

[rivaldo] 11/9/2017 08:50

Cheers Glaws2. From what I can see online there's some localised flooding in Fort Myers, but Irma has been strongly downgraded now it's onshore and the problems don't seem to be as bad as anticipated. I'd think that any problems would be short-lived - whilst the benefits to SOM overall would be much greater.

[alan_a_walker] 11/9/2017 08:42

Presumably the concern is that their hq is in fort Myers and any associated costs/disruptions? Don't see the issue myself either - believe the production bit is in hurricane-free michigan

[glaws2] 11/9/2017 08:39

Riv - they are located in Fort Myers which has taken the full force of Irma - so there may well be 'business continuity" problems.

[rivaldo] 11/9/2017 08:27

Bit of a counter-intuitive fall this morning? I'd have thought all this "weather" in the USA, Mexico, the Caribbean etc would lead to increased business for SOM as the rebuild over the next year takes place.

[rivaldo] 07/9/2017 09:26

Tipped on Motley Fool:



"These small-cap dividend stocks could be millionaire makers
Roland Head
06 September 2017

Some companies are just a pleasure to write about. Not just because their financial results are usually good. But also because you can rely on their management to provide a balanced and clear view of trading and market conditions.

One company which ticks these boxes for me is Somero Enterprises (LSE: SOM). This £156m firm is a market-leader in the field of concrete-levelling equipment. This is widely used in the non-residential construction market. For example, in a modern warehouse, a perfectly flat and horizontal floor is essential.

Somero's selling point is not only the quality of its equipment, but the fact that it provides training and 24/7 global support for all customers. After all, when you've just poured a concrete floor, waiting until tomorrow for help isn't much use.

Promising growth outlook

Turning to the numbers, market conditions appear to be strong. Revenue rose by 7% to $42.4m during the first half, while pre-tax profit was 15% higher at $12m. Net cash remained strong at $18.3m, allowing management to increase the interim dividend by 10%.

Somero's main market is North America, which accounts for around two-thirds of sales. This region was hit by wet weather during H1 and sales fell slightly, from $29.8m to $28.4m. But the group expects a stronger second half and says its customers are reporting project backlogs "well into 2018".

The group's H1 sales outside North America logged an impressive 41% gain, rising from $9.9m to $14m. Sales rose in markets including Europe, Latin America and Asia. This growing geographic diversity suggests to me that profits could be more robust than they have been in the past, if the US market slows.

Management remains confident of hitting full-year expectations. Broker forecasts indicate that earnings per share are expected to rise by 10% this year, putting the stock on a forecast P/E of 13 with an ordinary dividend yield of about 3.1%. In my view, Somero remains worth buying at current levels."

[rivaldo] 06/9/2017 16:04

Bouncing nicely now that the traders are out. Might see a decent re-rating assuming decent markets as the Oxman says.

The confidence shown in the outlook may yet see SOM beating expectations for this year.

[its the oxman] 06/9/2017 15:53

Suspect this will see some steady gains over 300p if we get a few good up days in the main market. Bit of patience required I guess.

[deanowls] 06/9/2017 15:17

The fact two months are already in the bag and I would assume this months deliveries will bring it home for the year, also they are looking at more export markets and the more that sell the more parts and additionals can be sold.

[shanklin] 06/9/2017 08:34

LOL rivaldo,

When I came back to my PC from breakfast to see SOM was down on the day, my first thought was of IQE yesterday.

[rivaldo] 06/9/2017 08:18

Finncap have reiterated their 350p target this morning.

I assume some of the results day traders are taking profits (or losses!). There's plenty of time for an upwards rebound (cf. IQE yesterday for a prime example).

[interceptor2] 06/9/2017 07:53

Pleased with these results which were slightly better than I anticipated.

Particularly pleased to hear that the strong trading in the US has continued into H2, which is important to the probability of seeing SOM issuing an ahead update during H2. All other regions also are reported to be trading well going into the second half.

[adamb1978] 06/9/2017 07:51

Another decent set of results; better than I had expected. Double-digit growth continuing nicely so current PE doesn't look overly demanding at all

[ragehammer] 06/9/2017 07:33

As I explained before, it is Europe which is proving to be the region of interest rather than China.

[rivaldo] 06/9/2017 07:10

Excellent results:



- solid increase over last year
- core US market picking up late in H1 and looking good for H2
- China picking up too
- bullish outlook for H2
- new products doing well
- $18.3m cash pile
- dividend up 10%

"Overall, the Board is pleased with the performance of the Company in the first half of 2017 and remains confident in delivering another year of profitable growth for our shareholders in line with current market expectations."

Good stuff.

[chashley1806] 06/9/2017 07:09

Interims just out. As expected, it's "in line with market expectations".

[death by donut] 05/9/2017 16:29

Hmm , bodes well for tomoz hopefully?

[hawaly] 04/9/2017 10:02

Back in for earnings release.
GLA.

[adamb1978] 03/9/2017 07:50

Ali - I'd be surprised if it's not 'trading in line' and then some detail around it. That's fine with me if it is

[ali47fish] 02/9/2017 19:10

anyone with any ideawhat to expect from next week's update?

[rivaldo] 27/8/2017 00:03

Good to see SOM recommended so highly by Jupiter's fund manager as follows:



"Fund manager focus: James Zimmerman
25 Aug 2017

Jupiter smaller companies fund manager James Zimmerman explains how investments in enterprises that generate non-sterling revenues and profits have boosted his fund"

"The second stock Zimmerman mentioned is Somero Enterprises. He remarked, ‘Somero Enterprises, which is up 128 per cent in the past 12 months, is a US-focused manufacturer of concrete-levelling machinery and was also among the strongest-performing positions over the past two years.

‘Somero has a 99 per cent market share globally in the leading concrete-laying technology, and after recently meeting with the company in Florida, I was impressed by the strength of its ongoing new product development, as well as the strength and longevity of its customer relationships with contractors that buy its equipment both in the US and the rest of the world.’"

[junior21] 18/8/2017 20:56

Not yet with Youinvest. They usually take just over a week from my previous experiences.

[grabster] 18/8/2017 20:55

Everybody should have had it by now. If it's not in your account by the close of play on Monday, complain.

[adamb1978] 18/8/2017 20:17

Anyone received their dividends with Youinvest or Selftrade yet?
Thanks

[mfhmfh] 18/8/2017 10:20

i received the same per share as you.

[stepone68] 18/8/2017 09:51

mfhmfh - how much did you get per share? I am also with iWeb, and had 30% withholding tax deducted so ended up with 7.09p per share. iWeb told me it was not possible to claim any of the tax back because Somero are traded through CREST.