Somero® provides the following update on trading for the current financial year ending 31 December 2021.
The Board is pleased to report that as a result of stronger than anticipated trading momentum in the US in the first four months of the year alongside signs of improving activity levels in Europe and Australia, it now expects to exceed previous guidance for FY 2021 established in the 10 March 2021 final FY 2020 results statement. The Company's previous guidance for FY 2021 indicated revenues were expected to grow in the single mid-digit percentage range from the US$ 88.6m reported for FY 2020, adjusted EBITDA would grow modestly from the US$ 26.1m reported for FY 2020 and ending net cash would approximate US$ 27.4m. The Board now expects FY 2021 annual revenues will approximate US$ 100.0m, adjusted EBITDA will approximate US$ 31.0m, and a consequential improvement in the anticipated year end net cash position.
2021 trading momentum in the US reflects an active market and healthy sales across the Company's product portfolio with particularly good performance in the boomed screed category driven by demand for new warehousing required to keep pace with the growth in e-commerce operations. Despite the lingering effects of COVID-19 restrictions, early positive 2021 performance in Europe and Australia supports the expectation for meaningful contributions to growth from both regions in 2021. All other regions are performing as expected. New products, such as the SRS-4, the Somero Broom+CureTM and the SkyScreed® 36, all released in 2020, are also anticipated to contribute meaningfully to growth in 2021.
The Company continues to make good progress on its new product growth strategy and continues to make the investment in sales and support staff accordingly. In April 2021, the Company added to its product portfolio by introducing the Somero SkyStrip®, a plywood sheet stripping machine that reduces lost labor time due to common injuries incurred during the shoring removal process. The Company continues to work on a pipeline of new products targeted to expand the Company's addressable market and anticipates release of an additional new product before the end of 2021.
This Announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as retained as part of UK law by virtue of the European Union (Withdrawal) Act 2018 as amended. Upon the publication of this Announcement, this inside information is now considered to be in the public domain.