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Somero floors the market again

Yet again, demand for the concrete levelling specialist's machines and services resulted in record earnings.
March 20, 2017

Somero Enterprises (SOM) is the kind of corporation Donald Trump would love, assuming the US president hasn't already encountered the Aim-traded group through his hotel empire. Not only does the concrete levelling specialist develop high-tech construction equipment, but it is the dominant brand in its field. Better still, it even sells machines to China. And to cap it off, the manufacturer of concrete screed spreaders is based in Fort Myers, just a two-hour drive across Florida to Mar-a-Lago, Mr Trump's club and retreat.

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The company also boasts a recent track record that any business figure would be proud of. In 2016, Somero again improved its profitability, increasing the operating profit margin for the sixth year in succession - this time by 168 basis points to 26.7 per cent - while boosting net income by nearly a quarter to $14.3m (£11.7m). The latter was done without much shrinkage in the tax charge, although proposals for changes to US corporate tax and infrastructure-focused fiscal policy could help earnings on two fronts. Elsewhere, good sales growth in Europe, China and Australia translated to operating cash flows of $16.9m in the period, another company record.

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