Tanfield Regulatory News (TAN)

For immediate release 24th July 2013

TANFIELD GROUP PLC ("Tanfield" or the "Company")

M&A Progress and Trading Update

Tanfield Group PLC, a leading manufacturer of aerial work platforms, is providing the following update on the M&A activity announced on 20th February and 15th April 2013. The proposed sale process of the Snorkel Aerial Work Platform division is ongoing, with a number of potential acquirers proceeding through due diligence and the negotiation of a Sale and Purchase Agreement. We continue to be supported by our M&A advisor, and the timescale is being managed in the most practicable manner.

As noted in the 2012 financial statements issued on 28th June 2013, the Company requires the introduction of additional working capital to be able to return to sustained profitability. Therefore, the business is currently being managed to conserve cash through the M&A process. Given that growth requires investment of cash into working capital, the group has therefore not been able to fully respond to the opportunities in the market. However, those opportunities remain strong driven by the ongoing recovery in the sector. Snorkel's product range, brand and reputation continue to generate strong demand in the market and the board believes this to be of major importance to the engaged potential buyers. 

Smith Electric Vehicles Corporation, in which Tanfield holds 25%, continues to extend its bridge financing as it follows its ultimate strategy of seeking a listing on a public market.

Further updates will be issued in due course.

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