Trading Statement

 

TIDMSOM 
 
RNS Number : 7908G 
Somero Enterprises Inc. 
08 February 2010 
 
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| PRESS ANNOUNCEMENT                                              | 
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| 8 February 2010                            |                    | 
|                                            |                    | 
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| Somero Enterprises, Inc                                         | 
| ("Somero")                                                      | 
|                                                                 | 
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| Trading update                                                  | 
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| The Board of Somero Enterprises, Inc, the North American        | 
| manufacturer of patented laser guided equipment used for the    | 
| spreading and levelling of high volumes of concrete for floors  | 
| in the construction industry, provides the following update on  | 
| trading for the year to 31 December 2009.                       | 
|                                                                 | 
| As we announced in November 2009, trading has remained          | 
| difficult, and sales declined in the second half of 2009.       | 
| However, full year results were broadly in line with our        | 
| revised expectations and the business remained profitable.      | 
|                                                                 | 
| We continue to manage our costs aggressively and, following the | 
| cost reduction programme in November, operating costs           | 
| (excluding depreciation and amortisation) in 2010 are expected  | 
| to be around $8.6 million, down from a level of $24 million in  | 
| 2008.                                                           | 
|                                                                 | 
| Our lending bank remains supportive and we have re-set a 2009   | 
| year-end covenant and quarterly covenants in 2010 so that they  | 
| are aligned with Somero's 2010 budget.                          | 
|                                                                 | 
| We believe that the outlook for 2010 is more positive than the  | 
| previous year and we are expecting a gradual improvement        | 
| starting in the second half of the year. As we have previously  | 
| stated, we have not reduced headcount in the salesforce or the  | 
| product development area, both of which are critical to support | 
| future sales, and Somero is currently introducing two new       | 
| products at the World of Concrete trade show.  We are also      | 
| developing additional revenues in the faster growing economies  | 
| such as China, Southeast Asia and parts of South America.       | 
|                                                                 | 
| At the time of the placing announcement in June 2009, we stated | 
| the Board's intention to put in place a new employee share      | 
| option scheme to retain and incentivise management. The         | 
| Remuneration Committee has developed a substitute Stock Option  | 
| scheme for management retention and incentivisation, which the  | 
| Board intends to discuss with major shareholders in the near    | 
| future.                                                         | 
|                                                                 | 
| Preliminary results for the year ended 31 December 2009 will be | 
| announced in May 2010.                                          | 
|                                                                 | 
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| Enquiries                       |                               | 
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|                                 |                               | 
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| Hawkpoint Partners Limited      | [phone]           | 
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| Chris Robinson / Serge Rissi    |                               | 
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|                                 |                               | 
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| Collins Stewart Europe Limited  | [phone]           | 
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| Piers Coombs                    |                               | 
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This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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