Trading update

 

TIDMSOM 
 
RNS Number : 9001C 
Somero Enterprises Inc. 
23 November 2009 
 

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| PRESS ANNOUNCEMENT                                                          | 
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| 23 November 2009                                   |                        | 
|                                                    |                        | 
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| Somero Enterprises, Inc                                                     | 
| ("Somero")                                                                  | 
|                                                                             | 
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| Trading update                                                              | 
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| At the time of our interim results in September, we reported that trading  | 
| was challenging and that we were continuing to focus on every sales        | 
| opportunity, while maintaining tight controls on cost.                     | 
| Since then, trading has remained difficult, and we now anticipate that we  | 
| will deliver a trading result for the year to 31 December 2009 below our   | 
| expectations. We have, however, continued to manage our cost base, and     | 
| have reduced annualised overheads by a further $1.5 million since          | 
| September, principally through headcount reduction. Operating costs        | 
| (excluding depreciation and amortisation) in 2009 and 2010 are expected to | 
| be around $10.8 million and $8.3 million respectively, down from a level   | 
| of $24 million in 2008.                                                    | 
| There were no reductions in the salesforce or the product development      | 
| area, both of which are critical to support future sales, and Somero will  | 
| introduce two new products at the World of Concrete trade show in February | 
| of 2010. We have also restructured our European sales leadership to        | 
| overcome the lagging sales performance in that area.                       | 
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| Jack Cooney, Somero's CEO, stated that:                                    | 
| "We anticipate market conditions will remain challenging in 2010 and       | 
| future demand levels will continue to be unpredictable.  Somero continues  | 
| to be bank covenant compliant, however, and the cost reductions have       | 
| reduced revenues required to pass the 2010 covenants to around $20         | 
| million.                                                                   | 
| "Accordingly, the Board remains confident in the Group's strategy and its  | 
| ability to benefit from the eventual market upturn.                        | 
| "In the meantime, we will continue to manage costs, and develop additional | 
| revenues in the faster growing economies such as China, Southeast Asia,    | 
| and parts of South America."                                               | 
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| Enquiries                             |                                    | 
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|                                       |                                    | 
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| Hawkpoint Partners                    | [phone]                | 
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| Christopher Kemball / Chris Robinson  |                                    | 
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|                                       |                                    | 
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| Collins Stewart                       | [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 
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