Tanfield Regulatory News (TAN)

11 Nov 2008 07:00



Tanfield Group PLC

11 November 2008

Tanfield Group plc

Change of Nominated Adviser and Joint Broker

The Tanfield Group plc is pleased to announce the appointment, with immediate effect, of Arbuthnot Securities as its Nominated Advisor and Joint Broker.

As stated on 1 July 2008, and reinforced in its Interim Statement on 30 September, Tanfield Group is operating in challenging global markets. The lack of availability of credit to end customers and a general reduction in demand, resulting from the economic downturn, is creating significant market uncertainty. Excess industry inventory continues to affect market pricing and this pricing pressure, combined with higher input costs, is significantly impacting margins and profitability. 

Despite these challenges we continue to trade at a lower level and have reduced capacity and costs which has allowed us to return to break even at these levels.

While market uncertainty makes future forecasting difficult, our 2009 plans broadly assume a continuation of current trading conditions with no sign yet of any upturn. We continue to review the scope for additional cost cuts with a view to further reducing our breakeven level in the event of any further deterioration in trading.

We continue to focus on our financial position which remains comfortable with cash of £13.3m at 31st October 2008, and no borrowings. Cash balances are expected to rise further as working capital unwinds and the Directors continue to believe that the business is very well placed to weather the downturn and take advantage of market improvements when they arise. 

Following a period of active involvement with the executive team Roy Stanley will, with immediate effect, revert to his role as non-Executive Chairman.

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