TIDMSOM
RNS Number : 9499H
Somero Enterprises Inc.
30 March 2020
30 March 2020
Somero Enterprises, Inc.
("Somero" or the "Company")
COVID-19 Update
Somero Enterprises, Inc. (the "Company") provides the following
update regarding in respect of the COVID-19 pandemic.
Trading update
On 11 March 2020 we reported accelerated trading in the US due
to improvement weather conditions led to a strong end to 2019 and a
positive start to 2020. We also noted in our 2019 results
statement, that while the outbreak of the COVID-19 pandemic led to
a brief stoppage in activity in China, we had yet to see a direct
impact of the COVID-19 pandemic on customer projects outside of
China.
Since that update and the rapid movement of government guidance
in that time across different regions, we have seen a dramatic
increase in pressure on our non-China markets with lockdowns
implemented in a rapidly increasing number of geographies including
across portions of the US. This is impacting not only customer
projects but also the manner in which we conduct our
operations.
Given the evolving nature of the COVID-19 pandemic, it is too
early at this stage to provide earnings guidance in relation to the
remainder of the current financial year, although we do consider it
likely there will be a material impact. We are therefore
withdrawing guidance for the full year.
Response to COVID-19
Health and safety
Our priority remains the health and wellbeing of our customers,
partners and employees and we are continuing to ensure that we have
the appropriate measures and precautions in place for their
safety.
We are closely monitoring the ongoing developments in relation
to the COVID-19 pandemic and are taking appropriate actions to
comply with governmental mandates.
Financial measures
As is prudent, we are taking actions to manage short-term cost
control while ensuring the business remains on a sound footing in
the long term. This includes reducing operational costs, limiting
our capital expenditures and optimizing our cash flows.
Accordingly, in the circumstances, the Board has taken the
prudent, precautionary decision to defer payment of the final 2019
ordinary dividend of 13.0 US cents per share and the supplemental
dividend of 7.7 US cents per share that were declared with the
Company's 2019 full year results and scheduled to be paid on 30
April 2020. These two dividends combined represent an US$ 11.7m
payment to shareholders. In accordance with Delaware Law, the US
state in which Somero is incorporated, the Company is deferring the
record date and payment date for the dividends and not cancelling
the dividends. Therefore, these two dividends will now be paid on
or about February 5, 2021 to shareholders of record close of
business on January 8, 2021.
January 8, 2021 is currently the latest record date permitted by
the London Stock Exchange in accordance with its standard dividend
procedures. The timing of the record date and payment date will be
kept under review, and dependent on business conditions, the Board
may decide to accelerate or further defer the dates. The Board
currently intends to maintain its current dividend policy going
forward, although any 2020 dividend will be paid as a final
dividend only, with no interim dividend payment made later this
year.
In addition, the Board is taking the prudent decision to cancel
the US$ 1.0m share buyback program.
Financial update
The Company's financial position remains strong, with no debt, a
substantial net cash position that currently exceeds US$ 24.0m, and
substantial access to liquidity through the Company's US$ 10.0m
line of credit.
Outlook
While the implications of the COVID-19 pandemic are difficult to
determine, the Board is confident in the health of our business and
the long-term growth opportunities in front of us. The Board's view
is supported not only by the Company's strong financial position,
but also the solid, albeit temporarily paused, non-residential
construction activity pipeline that remains across our global
markets, particularly in the US where customers have previously
reported project backlogs that extend well into 2020, and by the
progress we are making with our long-term new product
initiatives.
The Board will provide the market with updated guidance on the
Company's performance and expectations of future performance as and
when appropriate.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information, please contact:
Somero Enterprises, Inc. www.somero.com
Jack Cooney, CEO +1 239 210 6500
John Yuncza, CFO
Howard Hohmann, EVP Sales
finnCap Ltd (NOMAD and Broker)
Matt Goode (Corporate Finance) +44 (0)20 7220 0500
Carl Holmes (Corporate Finance)
Kate Bannatyne (Corporate Finance)
Tim Redfern/Richard Chambers (ECMO)
Alma PR (Financial PR Advisor) somero@almapr.co.uk
Rebecca Sanders-Hewett +44(0) 20 3405 0205
Susie Hudson
Sam Modlin
David Ison
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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