Last checked at 13 Jul 2018 07:00
Tanfield Group Plc
("Tanfield" or the "Company")
Corporate Update
The Board of Tanfield (the "Board") is pleased to inform the market that it expects to announce its half year results for the period ending 30 June 2018 during September 2018.
Background
The Company is currently defined as an investing company that has two passive investments. This status resulted from the disposal of Smith Electric Vehicles in 2010 and the joint venture between Tanfield Group Plc and Xtreme Manufacturing LLC ("Xtreme"), a Company owned by Don Ahern of Ahern Rentals Inc ("Ahern"), relating to Snorkel, in October 2013. Tanfield currently owns 49% of Snorkel International Holdings LLC ("Snorkel") and 5.76% of Smith Electric Vehicles Corp. ("Smith").
The strategy of the Company in relation to these investments is to return as much as possible of any realised value to shareholders as events occur and circumstances allow, subject to compliance with any legal requirements associated with such distributions.
Summary
· As reported in the Snorkel investment update on 21 June 2018, following a material increase in selling, general and administrative costs in Q1 2018, the Board reassessed the lower-end indicative value of its interest in Snorkel as being $25.3m and based on the most recent financial information, this value is now likely to be the realisable value if the call option is exercised in October 2018.
· The Board expects to update the market with the Snorkel Q2 2018 results around the end of August 2018.
· In the absence of any material change in the Snorkel Q2 2018 results, it is the Board's intention to impair the Snorkel investment value from £36.3m to £19.1m ($25.3m) which represents approximately 12p per share.
· In the event that the call option is exercised in October 2018, the Board will need to assess the Company's position and, if necessary, take appropriate advice.
· Smith continues to be held at a nil balance sheet value following the impairment of the investment at the end of 2015.
For further information:
Tanfield Group Plc
Daryn Robinson 020 7220 1666
WH Ireland Limited - Nominated Advisor / Broker
James Joyce / Alex Bond 020 7220 1666
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.