Somero Enterprises Inc on Wednesday reported a dip in interim profit despite a rise in revenue, citing increased staffing-related expenses.
Shares were down 4.7% at 414.55 pence each on Wednesday morning in London.
For the six months that ended on June 30, the Fort Myers, Florida-based laser-guided machinery concrete levelling specialist said pretax profit slipped 4.7% to $22.4 million from $23.5 million a year earlier, but revenue rose 6.4% to $68.5 million from $64.4 million.
The company said US revenue amounted to $55.6 million during the period, up 9.2% from $50.9 million, reflecting a ‘strong, active non-residential construction market and the positive impact of 2022 price increases.’
Total operating expenses, however, increased by to $17.3 million from $14.5 million a year earlier, ‘reflective of increased staffing that includes investment in sales and support staff in the US and abroad, as well as higher compensation, employee related expenses and increased travel,’ Somero explained.
Chief Executive Officer Jack Cooney said, ‘Outside of a very strong US market, we are pleased with the contribution to revenues from our international regions, and in particular with the activity levels and interest in our equipment, new and existing, that we continue to see in Europe and Australia.’
Somero declared an interim dividend of 0.1 US cents per share, up 11% from 0.09 US cents a year prior.
Looking ahead, the company said it expects business to trade in line with 2022 expectations for revenue of about $138.8 million, based on a strong half-year and a positive second half outlook.
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