Somero (SOM)

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12-Jan-2018 – 342.51p – £192.6m – PER 13.6

Trading Update For The 12 Months To End December 2017 – The Board now expects 2017 revenues will be slightly ahead of market expectations of $84.7m, EBITDA will be comfortably ahead of market expectations of $26.0m. Net Cash expected to be not less than $18.5m, well ahead of market expectations of $16.5m (intends to maintain a $15m Net Cash position). Lower US Corporate Tax, seems to be uncertainty of the benefit (or not) at present. Outlook, confident of another year of profitable growth.

I already hold here and intend to continue to do so for now. I am a little nervous though that the recent update was not clearer on the US Tax change (as a lot of revenue is from the US).

14-Mar-2018 – 364.75p – £205.1m – PER 13.7

Results For The 12 Months To End December 2017 – Revenue up to a record US$ 85.6m, up 8% from 2016, Adjusted EBITDA up 14% to a record US$ 28.0m (2016: US$ 24.6m), Debt-free balance sheet, Net cash of US$ 19.0m despite US$ 13.9m of dividend payments in 2017, Final Dividend of 12.75c for a total 2017 Dividend of 15.5c, a 40% increase over last year and a supplemental Dividend of 3.6c to be paid with final 2017 Dividend. Outlook is confident.

I hold and will continue to do so even though the growth is not as exciting as I was anticipating. The Dividend progress helps.

11-Jun-2018 – 402.5p – £226.6m – PER 16.6

AGM Statement / Trading Update – Trading ahead of the prior year in-line with market expectations.

I hold here and will continue to do so. Although growth is nothing special at present the ROCE and Operating Margins give me assurance.

17-Jul-2018 – 397.5p – £223.7m – PER 16.2

Trading Update For H1 2018 – In-line.

I hold here and will continue to do so although I would of course liked to have seen a little more in the way of growth (the ROCE and Operating Margin provide me with some level of comfort).

5-Sep-2018 – 385p – £216.7m – PER 12.6

Interim Results For The 6 Months To End June 2018 – In-line. Revenue up 6%, PBT up13%, Cash up 13% and the Interim Dividend is up 100%.

I hold here and will continue to do so, on a PER of 12.6 this still looks good value.

Subsequent note: I noticed slowing EPS growth just 3% and 6% in the next 2 years respectively, according to the latest Broker note I have (FinnCap 5th of September on Research Tree). Sold in October.

16-Jan-2019 – 293p – £164m – PER 9.4

Trading Update For The 12 Months To End December 2018 – Revenue and EBITDA moderately ahead of market expectations, Net Cash to be significantly ahead (circa $25m). Confident of profitable growth in 2019. There’s also an acquisition which will have a slight positive impact on 2019 earniings.

As a previous holding I still quite like. I will keep an eye out for changes in the current (modest) EPS growth forecasts of 3% and 6% in the next 2 years.

13-Mar-2019 – 375p – £211m – PER 11.7

Results For The 12 Months To End December 2018 – Record Revenue (+10%) and PBT (+13), Net Cash is up 48% and the Dividend (19c) is up 23% (there’s also a Special Dividend which is up 225% (11.7c).

Looks good, looks to have beaten the forecasts I have in my notes. Will be reviewing this with a potential to buy back in again.

7-Jun-2019 – 355p – £200m – PER 11.1

Trading Update For The 5 Months To End May 2019 – Trading below management expectations (adverse weather conditions) – Expects Revenue of about $87m, EBITDA of about $28m with Net Cash at 31 December 2019 of about $18m.

Not sure how much of a miss this is but it looks like about 15% or so on the Revenue side. Quality company but I considered it overvalued previously so looks like I will be sitting on the side-lines for a bit longer now. Or this may present a buying opportunity – Perhaps!

4-Sep-2019 – 280p – £158m – PER 9.6

Interim Results For The 6 Months To End June 2019 – Broadly in-line.

Still not yet tempted in here, would at least like to see those FY actuals. Latest Broker note this morning indicates negative EPS growth (-11%) forecast for next year and a an increase (5%) for the year after – So not a new EPS high.

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