StockMarketWire.com - Concrete-levelling technology group Somero Enterprises posted a large rise in first-half profit and upgraded its annual guidance, citing a 'very strong and highly active' US market.

Pre-tax profit for the six months through June increased to $23.5 million, up from $7.5 million year-on-year, as revenue jumped 82% to $64.4 million.

Somero more than doubled its interim dividend to 9c per share, up from 4c year-on-year.

Looking forward, it said it now expected full-year revenue of around $120 million and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of about $42 million.

In the first half, adjusted EBITDA was $24.6 million.

'The first half of 2021 as an amazingly active six-month period during which the company's revenue, profitability and cash flow reached historic levels,' chief executive Jack Cooney said.

'The rapid acceleration of US non-residential construction activity in the first half drove unprecedented demand for our products.'

Cooney added that Somero had delivered for customers by successfully navigating supply chain challenges and quickly adding and training operations personnel.

'While we expect supply chain challenges will continue in the second half, we have robust plans in place to mitigate these challenges,' he said.

Cooney said trading in the US benefitted from customer efforts to catch up on projects previously slowed by Covid-19 restrictions as well as from demand for new warehousing required to keep pace with growth.

'We are entering the second half of 2021 with positive momentum in our largest market, the US, with opportunities for further growth in our international markets and from new products, and with a strong financial position to invest in driving and supporting long-term growth.,' he said.


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