StockMarketWire.com - Concrete leveling technology group Somero Enterprises said it still expected to its first-half trading to be about 25% below levels required to achieve market expectation at the start of the year of $90.0m in 2020 revenues.

The company said that, following cost cuts, it remained profitable and cash generative at current volumes.

'The board remains confident the company would continue to be cash generative even in the scenario where revenues fall an additional 20% from current levels,' it added.

Somero Enterprises said its financial position remained secure, highlighted by net cash as at 30 June of at least $28.0m.

'The uncertainty around the scale, duration and impact of the Covid-19 pandemic on Somero's end markets in the non-residential construction industry continues to make it difficult at this time to provide further guidance on the Company's financial performance in the rest of 2020 and beyond,' the company said.

'While extended project backlogs reported by our customers prior to the Covid-19 pandemic, particularly in the US, indicate the non-residential construction market was active and healthy entering this period, financial performance for 2020 and beyond will depend on a number variables over which the company has no control.'

'The company will provide updates as appropriate regarding the outlook for the business once greater clarity is attained.'




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