Somero set to top guidance but cautious on outlook

Concrete levelling technology outfit Somero Enterprises told investors on Wednesday that annual revenues and earnings looked set to top guidance thanks to some improved weather conditions across the US.

Somero said 2019 sales were now projected to be roughly $87.0m, slightly ahead of the top end of its guidance provided back in July.

The AIM-listed firm added that the growth would also lead to an improvement in full-year adjusted underlying earnings.

However, Somero took a more cautious approach when issuing its full-year guidance for 2020.

"The board recognizes that while market conditions and activity levels remain generally positive in non-US regions, there are factors impacting each market that slightly temper underlying growth expectations for 2020," the company said.

"With this combined view, the Board expects 2020 will be a profitable year with healthy cash generation, revenues comparable to 2019 and EBITDA broadly in line with 2019 and in line with current market expectations due to the aforementioned planned increase in investment for future growth."

As of 1345 GMT, Somero shares had shot up 11.08% to 288.80p.