Somero Enterprises (SOM) Trading Update summary

Trading environment and performance

• North American trading in H1 2024 was below H1 2023 due to project delays, high interest rates, labor shortages, concrete rationing, and severe weather.

• European market activity remained strong, with H1 2024 trading comparable to H1 2023, supported by healthy project backlogs.

• Australia saw project delays from inclement weather, leading to lower H1 2024 trading versus a record H1 2023.

• Rest of World trading declined, mainly from lower sales in the Middle East and Latin America.

Outlook and strategic actions

• H2 2024 is expected to improve due to new product launches and better weather conditions.

• A 15% workforce reduction and strict cost controls have been implemented to offset lower revenue expectations.

• FY 2024 revenue is now expected at $110.0m (down from $120.7m consensus), EBITDA at $30.0m (down from $34.0m), and year-end cash at $27.0m (down from $31.7m).

• Long-term growth drivers in non-residential construction remain intact, with ongoing efforts to expand product offerings and international presence.