gretel
19 Mar 2018
Re: Finncap increase target price to 465p... Finncap's increased 465p target price is summarised as follows FYI:"Full-year results ¡V dividend turbo boostedFull-year results were slightly above expectations and point to being on track to exceed our previous FY 2018 forecasts slightly. Market conditions remain robust in its main US market, with significant growth seen in Europe. A revised dividend policy gives new clarity to cash returns, (backed by $19m of net cash), and triggers a strong uplift in ordinary dividend plus a supplementary dividend. The shares remain attractive on an earnings basis but also have premium yield attractions. Our raised 465p TP is based on a P/E of 17.0x in 2018 and 16.0x in 2019 and offers strong upside scope to the shares. Market conditions remain favourable and cash returns underwrite our positive stance.ƒ¤Results Results were slightly better than the year-end update, with a strong December. Revenue increased by 8% to $85.6m, with EBITDA at $28.0m, an increase of 14%. Adjusted PBT was $26.2m up 19% and following a lower tax rate adjusted EPS at 33.3ȼ, was up 27%. A final dividend of 12.75ȼ was declared, making 15.5ȼ in total ¡V a 40% increase. A supplementary dividend was declared at 3.6ȼ ¡V tobe paid alongside the final. Net cash of $19.0m, was down $1.1m on the prior year with $19.8m of operating cash flow and $13.9m paid on dividends.ƒ¤Operations Four out of six regions saw growth. The US was up 2% with a strong H2 following a weaker H1, with a strong outlook. Europe was the star performer, seeing 54% growth, helped by strengthening economies. China was down 14%, but is responding to marketing measures instigated later in the year. LATAM was up 35%, offsetting a weaker Mid-East. New product introductions continue to boost sales growth. Ride on screeds were up 29%, with stronger 3D profilers and accessories & spares also strong. Remanufactured sales were down 5% and in part reflect the Chinese experience.ƒ¤Forecasts We slightly upgrade our 2018 forecasts, with a $0.7m increase in adjusted PBT to $27.7m, boosting EPS by 2.5% to 37.7ȼ. We introduce new 2019 forecasts based on modest sales growth of 4.4% and EBITDA margins of 32.1%, giving YoY EPS growth of 6%. Cash conversion remains strong, allowing a 39% upgrade to annual dividend in 2018 and significant further scope for supplemental dividends.ƒ¤Valuation The shares have been strong performers over the past year, reflecting robust market conditions and the gain from US tax changes. We increase our price target from 450p to 465p pointing to a P/E of 17.0x in 2018 followed by 16.0x in 2019. Cash returns and a 5.4% yield are key features of the investment case. We therefore still see upside to the shares and remain positive on the group¡¦s prospects."
gretel
15 Mar 2018
Just tipped in thie IC.... [link] Update: Buy at 370pRecord full-year revenue took Somero (SOM) within striking distance of its $90m (£65m) sales target. The concrete levelling specialist’s adjusted cash profit also reached a new high, rising 14 per cent to $28m. In somewhat of a hat-trick, operating cash flow simultaneously rose to an unprecedented $19.8m from $17m year on year. Topping off an excellent set of results, Somero has updated its dividend policy: management now targets a year-end net cash balance of $15m, whereby 50 per cent of any surplus cash will be distributed to investors – for 2017, this meant a special dividend of 3.6¢ a share.The proportion of non-US revenue rose to 32 per cent, reflecting an increasingly diversified top line. Europe was the star performer with eye-catching growth of 53 per cent to $12.2m. Management says the company's European equipment fleet is relatively old so technological upgrades could breed new opportunities.China endured a 14 per cent decline in sales to $5.5m, largely driven by a sluggish first half. Somero still sees a strong opportunity to expand its market presence here, albeit over a longer timeframe. Middle Eastern sales also fell 28 per cent to $2.1m, although activity levels were maintained.Analysts at finnCap forecast adjusted pre-tax profit of $27.7m and EPS of 37.7¢ for 2018, up from $26.2m and 36.5¢ in 2017.IC ViewTrading on an undemanding forward multiple of 14, the shares still represent good value – particularly given management’s confidence in US growth prospects. The new dividend policy is an added bonus. Buy."
Hardboy
14 Mar 2018
Re: Finncap increase target price to 465p to... I wonder where their AGM is
gretel
14 Mar 2018
Finncap increase target price to 465p today from 450p:[link]
Hardboy
14 Mar 2018
Re: Forecast-busting results today..... It's a busy reporting day for me - 4 companies I hold shares in all reporting finals. The first 2 I looked at were both doing so well they were awarding special dividends (next 2 not so good) but for half an hour or so life was good. Agree with all you say Gretel: very good results and all indicators suggest more of the same in the future.
gretel
14 Mar 2018
Forecast-busting results today..... Excellent results - well ahead of forecasts for sales, EBITDA, PBT and EPS.PBT of $25.7m compares to just $24m forecast by Finncap.And 0.31c EPS compares to forecast 27.4c. Upgrades coming for this year?Plus there's a 3.6c special divi on top of the 15.5c normal divi.Most importantly, current trading for both the USA and Europe is very strong indeed:"Current Trading and OutlookThe high level of activity in North America during the latter part of 2017 has continued in 2018. We continue to see strong interest in our equipment and remain encouraged by the positive non-residential construction outlook in the US for 2018. The expected positive impact from US corporate tax reform is an additional factor reinforcing our confidence in North American growth prospects.In Europe, the strong performance of 2017 is also expected to carry forward into 2018. Similar to conditions we see in the North American market, European interest in our equipment remains strong driven by demand for replacement equipment, technology upgrades, and new products. Our confidence in the growth prospects in Europe is supported by improved economic conditions across the territory."
gretel
20 Feb 2018
Re: Bouncing now prior to results I'm assuming the 75,000 share trade at 360p reported late cleared an overhang yesterday. New highs today hopefully.
gretel
19 Feb 2018
Bouncing now prior to results Looking good again here.Results will be on 14th March. With a booming US economy, huge potential in China and India and this outlook from January, there's every reason to believe SOM's upswing will continue for some time yet:"Outlook Following record results in 2017, the Board is confident in the Company's ability to deliver another year of profitable growth in 2018 as the underlying market conditions in our core markets remain positive and as the Board continues to see significant growth opportunities in our other territories. The Board's confidence is further supported by recently enacted pro-growth US corporate tax law changes which are expected to stimulate increased economic activity in the Company's largest market."
smilingmickey1
22 Jan 2018
Re: Buy tip in Shares Magazine The recent trading update whilst very upbeat says sales revenue only up by around 5 percent you.PE ratio is at it's highest since I bought in in early 2016.I,m very happy to hold here, but am not surprised we are not heading towards the broker,s latest target of 480p just yet. Not too long to wait however!
claude reins
22 Jan 2018
Re: Buy tip in Shares Magazine Bit of drift, bit of profit taking, bit of switching companies to invest in, bit of weaker $. Doesnt take much. Volumes very low.
Hardboy
22 Jan 2018
Re: Buy tip in Shares Magazine Yes I don't really understand the recent weakness - the weakening $ may be partly to blame, but we are now where we were before the trading statement; which was very positive, and subsequent press comment has been too.
gretel
22 Jan 2018
Buy tip in Shares Magazine Tipped in Shares Magazine this week - notes Finncap's increased 450p target and concludes "keep buying":[link]
gretel
12 Jan 2018
Re: Results ahead of expectations...... Paul Scott is a SOM holder - he's commented as follows this morning on Stockopedia:"Positive update from Somero Enterprises Inc (LON:SOM) today (disclosure: I have a long position)- a very nice, niche business, which makes the laser-guided machines used to lay perfectly flat concrete floors (very important for warehouses). Being based in USA, it should hopefully benefit from tax reductions.Paul.EDIT: I've just seen a broker note, upgrading 2017 EPS forecast by 7.7% to 29.5c, and 2018 by 7.0% to 36.8c. That translates into 21.8p and 27.2p, giving a 2017 PER (based on share price now of 360p) of 16.5 times, and a 2018 PER of 13.2.Conclusion - it still looks cheap, based on 2018 forecasts. Also note that it has a strong balance sheet, and reports net cash today of $18.5m. Positive outlook comments too. Very nice."
Looking for growth
12 Jan 2018
Re: Dealing Hardboy, I've had similar issues before. Even though I had filled this in before and the fact I already owned shares proved I must have.Excuse I was eventually given by Selftrade was that the form needs renewing every 3 years. But they don't warn you that its run out if that's the case. First you known is when you come to sell/buy.I've not had this problem with other brokers, so treat what Selftrade say with a great deal of sceptism. Anyway that's the reason they gave me.You should check your last dividend because without this form being up to date then you would have paid 30% tax on it to US authorities instead of 15%.Cheers LFG.
gretel
12 Jan 2018
Finncap raise target price to 450p Finncap have raised their target price to 450p (from 420p), so still plenty of upside:[link]
