Last checked at 1 Feb 2011 07:00
1 February 2011
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 2010, which Tanfield expects to announce in April 2011.
Trading for the second half of 2010 was similar to that of the first half and in line with the Board's expectations. The Company continued to execute its strategy of cash preservation and net cash at 31 December 2010 was £3.6 million (30 June 2010: £2.2m).
As outlined in the Company's announcement of 4 January 2011, Tanfield completed the disposal of the business and assets of the Smith Electric Vehicles division to Smith Electric Vehicles US Corporation; Tanfield's 49% owned associate company, on 1 January 2011.
As predicted, the market for aerial work platforms stabilised in the second half of 2010, after a very difficult and prolonged period of recession. The Company has consolidated all its powered access products into the Snorkel brand which has been well received by customers. General activity in the construction industry remains low; however, the Board is encouraged by the positive sentiments emanating from the equipment rental sector, and is therefore cautiously optimistic that stabilisation may evolve into a return to growth in the mid-term.
Darren Kell, CEO of The Tanfield Group Plc, said: "The return of stability in the aerial lift industry in the second half of 2010 allowed Tanfield to focus on enhancing its Snorkel product range and global sales channels."
"Entering 2011, Tanfield remains debt-free, with a positive cash balance, a very strong product portfolio in powered access and an excellent international distribution network."
Further information:
Tanfield Group plc 0845 155 7755
Darren Kell / Charles Brooks
Arbuthnot Securities Limited (NOMAD and Broker) 020 7012 2000
James Steel / Ed Gay
Media Enquiries
Dan Jenkins 07536 092682
ENDS