High-tech concrete-levelling is not a business description that rolls off the tongue. But that shouldn’t detract from its commercial potential. Indeed, Somero Enterprises (SOM), which provides equipment, training and customer support for this process, reported pre-tax profits of $12m (£9m) for the six months to 30 June 2017, up from $10.4m a year earlier. And the group raised its dividend by 10 per cent to 2.75¢ while declaring a further special payment of 13.3¢. Despite these encouraging signs of progress, Somero’s shares are attractively rated.
IC TIP:
Buy
at
279p
Tip style
Value
Risk rating
High
Timescale
Long Term
Bull points
Strong long-term prospects
Low rating
Strong net cash position
Potential for further special dividends
Bear points
Recent North America and China weakness
Vulnerable to poor weather