Last checked at 20 Feb 2013 07:00
For immediate release | 20th February 2013 |
TANFIELD GROUP PLC ("Tanfield" or the "Company")
Trading Update and Approaches
·; Trading in second half in line with first.
·; Working capital debt facility agreed.
·; Smiths' Interim Bridge funding raised, long term fundraising ongoing.
Tanfield Group Plc, a leading manufacturer of aerial work platforms, provides the following trading update prior to entering the close period ahead of its preliminary results for the financial year ending 31 December 2012, which Tanfield expects to announce in April 2013.
Aerial Work Platform business
Revenues in the 3rd quarter grew month on month and break-even revenue level was achieved in October 2012 - the first such month since 2008.
As indicated in the interim announcement, given the need to restock the key markets of Australia and Japan, the lower end of year shipments, and the focus on inventory management to minimise working capital, the company took steps during the fourth quarter to maintain its position to respond to the improving opportunities in 2013. Overall revenues and operating losses for the second half were in line with those in the first half.
The resulting inventory profile has, as planned, put the Company into a strong position to respond to the 2013 buying season that is expected to commence in the second quarter.
The end markets continue to recover on the back of replacement demand and the Company has received significant order forecasts from key customers, supporting a positive outlook for 2013 and the Board's confidence in the ability in 2013, subject to continued favourable market conditions, to achieve its first full year profit since 2007.
Net cash at the end of June 2012 was £2.7.m and at the end of December 2012 was £2.2m. In addition, the company has agreed a debt facility to help fund working capital growth.
Approaches
The Company has received a number of approaches from credible parties, who have expressed interest in making a strategic acquisition of our Global Aerial Work Platform business division in order to enter this recovering market. The Board is considering these approaches and will provide an update in due course. Any disposal of this business would be subject to shareholder approval. There can be no certainty that any negotiations will result in an agreement to dispose of this business. We will keep shareholders informed of any further developments.
Smith Electric Vehicles ("Smiths")
As announced in the Interim results, Smiths, in which Tanfield has a 24% equity interest, has commenced a process to seek financing options to deliver its strategy and execute the next phase of its business plan. Interim bridge funding has recently been made available. In order to assist this process Tanfield has extended the maturity date of its $3 million bridge loan to Smiths until June 2013.
Further information:
Tanfield Group Plc
Darren Kell / Charles Brooks 0845 155 7755
WH Ireland
James Joyce/Nick Field - Corporate Finance
Seb Wykeham / Ruari McGirr - Corporate Broking 020 7220 1666
Buchanan
Charles Ryland/ Helen Greenwood 020 7466 5000