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Yup, looks like our cousins across the pond are reading the same things.
I wonder if the American's will start buying into Tan now this news is out ? Here's hoping for a sustained jump to 56 by the end of the week
For immediate release 20th February 2012 TANFIELD GROUP PLC ("Tanfield" or the "Company") New Joint Venture and investment at Smith Electric Vehicles Corp. The Board of Tanfield is pleased to announce that at an event in Los Angeles, California on Friday 17(th) February, its US associated company, Smith Electric Vehicles Corp. ("Smith"), has signed a letter of intent with Wanxiang Group, a global leader in automotive parts manufacturing and supply. The principal terms include a $25M investment in Smith, which will form part of the Series D placing announced on 14 February, and up to a $75M investment for a joint venture to develop, manufacture and commercialize all-electric school buses and commercial vehicles for multiple industries in China.
They are getting very excited about the tie up on the Advfn board..sp could open at 60p maybe??
A couple of 'ifs' and 'shoulds' but overall this is very good news for Tan, providing that when they do declare results, they explain where all the SEV money has gone. Maybe new production equipment ? We never can tell with this lot. By the way, I like the new Smith's logo, very mythic.
Nice interesting article...........i am not sure about RNS though........TAN never known as a company of many words..........HOWEVER,all the latest known about SNORKEL,and SEVUS,indicate that spring will be blooming time for TAN.......as long then when they do come out with RNS there will not be some nasty surprise in it. GLA..........
http://www.marketwatch.com/story/smith-electric-vehicles-and-wanxiang-group-announce-investment-and-joint-venture-2012-02-17 Thanks to talk to the hand iiibb RNS Monday am?
Extracts from another poster ... ..Two of the most popular retail punters’ plays on the Alternative Investment Market (Aim) are suffering wildly contrasting fortunes right now. Tanfield, once the darling of the Aim market, looks to be close to rehabilitation after putting its investors through a rollercoaster ride over the past few years... At the beginning of this week Tanfield announced it was raising £12m at 41p a share, only a minor discount to its prevailing share price. The fund-raising went off without a hitch and the funds will be used to ease working capital pressures and improve the supply chain as Tanfield’s core aerial access platform market shows signs of picking up. The company’s order book rose over the second half of 2011, giving management confidence to seek funds from investors. Tanfield has also received funds in recent months from its interest in the Smith Electric Vehicles US business (SEVUS). This was the business into which Tanfield transferred its share of the Smith electric vehicles venture when management accepted it was becoming too much of a drain on resources to wait for the ‘jam tomorrow’ business to come to fruition. It received a chunk of paper as well as some cash for its interest and has already received some $5.6m (£3.6m) deferred consideration and seen the Americans successfully raise $40m for the business this week, which gives it some hope of success. Tanfield still has a 24 per cent stake in SEVUS, which could prove valuable in the long run... ...As for Tanfield, it was lucky that key shareholders supported it through the worst moments, but it was also lucky to have a bread and butter business to fall back on when its blue sky efforts hit the wall. It still has a way to go, but Tanfield looks to be on more solid ground once more and if management remain focused and try not to run before they can walk they may be able to complete the turnaround.
Thanks - that's useful. The numbers still look good. Basically TAN is trading at half its true value based on not so hidden assets. May be time to stock up some more!
Courtesy of one man'sthoughts on ADVFN bb ... Since the last Smith's placing, the value of Tanfield's stake (according to the Form D filings) has risen from $63m to $84.1m or from £40.7m to £54.3 in Sterling. This works out at 43.8p per share to Tanfield, compared to the current price of 45p per share. There's three things which are encouraging in my view: 1. The value of SEV has reportedly risen by 33% since the last placing, or from $12 a share to $16 a share. That bodes well for the value when it comes to the IPO, which I expect in April this year. 2. The value to Tanfield means that the Snorkel business is effectively thrown in for free or if you value the Snorkely business then the SEV business is thrown in for free. 3. The Snorkel business is now fully funded and has increasing demand for its product. Yes, management have made a mess of things in the past, although this was also against the backdrop of one of the worst markets for their product in the company's history.
It would be good to see the details of the SEVUS fundraising then we might get an up to date calculation of the TAN stake. But I guess the bad news it that this pushes a SEVUS IPO further away, which means the TAN stake stays unvalued in its own balance sheet and the share price stays low. Anyone know how to get the US details?
Smith have filed a form D with SEC, looks like a capital raise, could dilute Tan's holding from 27% down, but wont change our holding. Expect another RNS in the morning. Getting interesting again. Also looks like the 41p placing is good business and well received by the market, II's don't agree to place shares at such a small dilution for no reason. I would have expected 35p for a placing, but I see this as good news. http://www.sec.gov/Archives/edgar/data/1455900/000145590012000001/xslFormDX01/primary_doc.xml
Agree with you.yes short term mean dilution for us,HOWEVER,for me as investor here the full package is more important,and as such if this extra cash will give TAN the platform for meeting the market demand then its a positive move........of course time will tell,but for me it is HOLD for now................planty of upside from here,as we still awaite news from SEVUS IPO..................ATB...............
Agreed it isn't ideal but a couple of potential positives in my view; 1) More cash to build a stronger business - as it says they are having problems meeting demand so longer term more value 2) 41p is not bad as a placing price and means they have been able to sell a fair amount of shares at a reasonable price meaning they see plenty of upside. All IMHO Cheers
It is disgraceful that another 30m approx of shares issued to 'mates' at a cheap 41p - just means the loyal shareholders get diluted yet again, usually because the brokers find rights issues too much of a drag for them to earn their 'hard earned' commission - lol! It's about time loyal shareholders walked away from this type of behaviour by the BOD - I am out of here at 50p - good riddence and good night! GLA.
AIM listed electrical vehicle specialist Tanfield (TAN) has raised £12 million at 41p, via its newly appointed broker WH Ireland. Tanfield is a leading supplier of zero emission, aerial work platforms and has witnessed a recovery in its markets thanks to increasing demand for replacements. It has struggled to supply orders due to working capital constraints, indeed in the six months to June the outstanding order book was up 170 per cent to £20.9 million. It has struggled against supply chain bottlenecks so the fundraising will provide the opportunity to place larger orders with its suppliers, as well as the ability to make strategic investments in key supply channels. By shortening lead times it will help Tanfield benefit from increasing customer order books. Tanfield reckons it will break-even at an operating profit level on sales of £90 million. In the first half of 2011 it achieved sales of £24.6 million (up 25 per cent) and is on course to match this in the second half. Investors in Tanfield have endured a roller coaster ride over the last few years, but the placing is welcome news and provides much needed strength to its balance sheet.
good news that this provides tan with security and i guess by lack of share issue that they are canvassing the support of the institutions for the money but the only shame is that existing shareholders were not given right to participate at 41p and as a result get dilultion. roll on ipo of sevus to realise teh value, but do think we may get benefit of short term rise here as teh money scenario now formed up at tan. good nes overall
They have done the work to generate the order book, but now need the cash to fund producing it. So many companies will start to go through this. Business picking up but then have no resources to move forward. Tanfield say thier business has increased due to replacement but also there is so much demand for arial platform work due to health and safety requirements they will just keep on going..... Tanfield (AIM: TAN), a leading manufacturer of aerial work platforms, is pleased to announce that it has conditionally raised gross proceeds of approximately £12 million by way of a placing of 29,268,293 new ordinary shares of 5p each (the "Placing Shares") at a price of 41p per share (the "Placing"). The placing by WH Ireland, as Nomad and broker to the Company, is for an aggregate of 29,268,293 new Ordinary Shares at a price of 41 pence per new Ordinary Share to institutional and other investors, comprising 9,407,720 shares to be issued under existing authorities and 19,860,573 further shares, the issue of which is conditional on the passing of the Resolution. Highlights · Aerial Work Platform market demand recovering - driven by replacement requirements · During the first half of 2011, the Company's turnover rose 25% to £24.6 million while the outstanding order book rose 170% to £20.9 million · Ability to meet orders currently restricted by working capital constraints and supply chain bottlenecks · Funds raised from Placing expected to alleviate bottlenecks and accelerate the expected return to profitability Darren Kell, Chief Executive of Tanfield, commented: "The additional working capital raised by this Placing will help to alleviate the bottlenecks within our supply chain allowing us to increase throughput, reduce lead times for customers and generate purchasing efficiencies. As a result, we believe it should accelerate our return to profitability and help to cement our position as one of the leading global manufacturers in the aerial work platform industry." Regards & GLTA
Back down to 41p?/ http://online.hemscottir.com/ir/tan/ir.jsp?page=news-item&item=931851136935416
Anyone know what has happened with Myo, not seen him post on here for a very long time. Is he still in? Trading statement pretty mediocre and where has the cash gone. Cash at 30 June 2011 £4.7mill, cash at Dec 31 2011 £3.4mill!!!. I thought Tan received circa £3.7mill end November 2011 final Smith Instalment. If this was the case how can trading in H2 be the same as H1, they have lost too much cash. Cash at Dec 2011 should have been circa £6mill if everything was the same. Obviously not, more clarity required from this management I think, and fingers out, as the statements are same old story every time.
I think the worry is over the cash situation. Same as last year but they have had several million quid from sale of SEV, so a big cash burn? Also they don`t seem able to respond to the increase in orders, if their lead times get long they will lose this opportunity of a growing market. They have been using the same excuses for too long now, they should have sorted this by now. I`m normally optimistic but this RNS doesn`t read well.....
What's with all the selling today? OK so the update wasn't brilliant - cash down slightly but more orders than they can meet - and of course nothing about SEVUS - but it hardly deserved that amount of red ink. And the US economic news is getting better so we may see something from Sevus this year. Hope so!
TANFIELD GROUP PLC ("Tanfield" or the "Company") Pre-Close Trading Update Tanfield Group Plc, the leading manufacturer of aerial work platforms, is providing the following trading update prior to entering the close period ahead of its preliminary results for the financial year ending 31 December 2011, which Tanfield expects to announce in April 2012. As anticipated in the Interim Results, trading for the second half of 2011 was similar to that of the first half. The Company's order book continued to grow as order intake significantly outstripped monthly shipment revenues. Equipment lead times extended as the growth rate was managed to ensure the company optimised the use of its working capital. Net cash at 31 December 2011 was £3.4 million (31 December 2010: £3.6m). Darren Kell, CEO of The Tanfield Group Plc, said: "Global demand for aerial work platforms continues to build, driven by fleet replacement at major rental operators. The Company is examining ways that will allow it to respond to that increased global demand and to reduce its lead times accordingly."