Somero Enterprises ends year in line with guidance

(Sharecast News) - Concrete slab measurement and installation equipment specialist Somero Enterprises reported 2024 full-year revenue of $109.2m in an update on Thursday, in line with guidance and market expectations. The AIM-traded firm said revenue growth in the second half was 10.8% higher than the first half, reaching $57.4m.

It said the improvement was driven by the easing of severe weather conditions in North America and the contribution of three newly launched products, which added about $7.6m in revenue.

North America remained the company's largest market, generating $82.2m in revenue, though that was lower than the $88.4m reported in 2023.

The region continued to face headwinds, including project delays due to high interest rates, labour shortages, and concrete rationing.

European revenue remained stable at $14.6, reflecting strong demand in the non-residential construction sector and positive reception of the S-940e, the company's first electric screed.

Australia saw a 33% revenue decline to $6.6m, following exceptional growth in previous years.

The company said it expected long-term growth in the region to normalise at sustainable levels.

Revenue in the rest-of-world segment declined to $5.8m from $7.3m, primarily due to the divestment of direct operations in China and lower sales in the Middle East.

Parts and service revenue fell 11% to $16.8m, with declines in North America, Australia, and China reflecting overall volume trends in those regions.

Excluding separation-related costs, the company said it expected to report adjusted EBITDA of $29.1m.

Year-end cash was anticipated at $29.5 million, reflecting lower net working capital investment.

Somero said it was continuing to prioritise product innovation, with the S-940e, SRS-6s, and STS-11HC contributing meaningfully to 2024 revenue.

The company said it was advancing new product development focused on electrification and technological advancements.

International expansion efforts also progressed, with the fully operational Belgium service centre receiving positive customer feedback.

The board said it had initiated the search for a chief executive officer, adding that it would provide updates once a successor is identified.

Looking ahead, Somero said it expected moderate improvement in trading for 2025, supported by a strong US non-residential construction market, sustained contributions from Europe and Australia, and further new product introductions.

Full-year results for 2024 would be released on 11 March.

At 1606 GMT, shares in Somero Enterprises were down 4.5% at 288.9p.

Reporting by Josh White for Sharecast.com.