The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Tanfield raises funds so it can meet increased demand

Mon, 13th Feb 2012 09:34

Aerial work platforms maker Tanfield has raised funds through a placing to remove bottlenecks in its supply chain and to speed its expected return to profitability.The company has conditionally raised £12m through the issue of 29.3m shares at 41p each, 4.875p below the mid-market closing price on the day before the fund raising was announced.The company said that global demand for aerial work platforms is rapidly returning as the major fleet operators get around to replacing ageing equipment. In this new environment, pricing has improved and the firm's margins have increased.That's the good news. The bad news is that the company is having difficulty meeting this demand, as the supply chain has not yet recovered sufficiently to cope with the upturn, so the company is having to compete hard to get preferential treatment from suppliers, and in this regard constrained working capital has proved a hindrance, hence the decision to raise fresh funds.Shorter supplier lead times will allow the company to take advantage of rising customer order books. The Tanfield directors currently estimate that the company would break even at an operating profit level on annual revenues of around £90m.The new shares issued represent around 30.9% of the existing issued ordinary share capital of the company, so it is quite a chunky issue. The 10.1% discount of the placing price to the previous trading's day's mid-market closing price was a factor in the shares dipping just over 4% (1.875p) to 44p in early trading after the announcement.jh

Related Shares

More News
25 Apr 2024 12:19

EARNINGS: LSL starts 2024 "strongly"; Focusrite maintains payout

(Alliance News) - The following is a round-up of earnings and trading updates by London-listed companies, issued on Thursday and not separately report...

20 Nov 2023 17:52

Tanfield hails investee Snorkel's swing to third quarter net profit

(Alliance News) - Tanfield Group PLC on Monday noted that its investee Snorkel International Holdings LLC swung to a net profit in the third quarter o...

17 Aug 2023 11:40

Tanfield hails investee Snorkel swing to second quarter profit

(Alliance News) - Tanfield Group PLC on Thursday noted that its investee Snorkel International Holdings LLC reported an increase in sales for the seco...

24 Jul 2023 11:07

Tanfield reports narrowed interim loss as legal costs reduce

(Alliance News) - Tanfield Group PLC on Monday reported a narrowed interim loss as it reduced its legal expenditure following the settlement of procee...

25 May 2023 15:48

UK shareholder meetings calendar - next 7 days

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.