27.09.2012

Tanfield flat

Tanfield, owner of Snorkel aerial lifts, has issued a brief mid-year trading statement and says it expects October to be its first ‘break-even’ month since the recession hit.

Total revenues for the six months to the end of June were £24.1 million up marginally on last year on a like for like basis, while net losses were £7 million.

The company says that margins have improved and since the injection of £11 million of new equity production has stepped up to the point where it expects October to be the first month in which it will break even since the recession hit in late 2008.

It also confirms that this puts it on track to return to profit in 2013.
Chief executive Darren Kell said: "We made steady progress from a low base during the first half of 2012, as global demand for aerial work platforms continued to recover."

"Since the injection of working capital in March, the business has witnessed monthly output improvements, with the major step-change impact from our supply chain investment occurring late in the third quarter after the end of the half year. Margins have improved, losses have narrowed, and the Company predicts having its first post-recession break-even month in October. The outlook for 2013 looks positive, with the company remaining on track for full year profitability."

Vertikal Comment

Tanfield has only issued a few headline numbers in its interim statement, making any sensible comparison with last year impossible. While the headline numbers have not changed a great deal - and it looks as though the operating loss has increased, we do not have enough information to make any comment.

The very slow start to the year will prevent 2012 from being much better than last year, in spite of the globally improving market. Tanfield has probably written this year off and will try to make sure that it comes in marginally ahead of last year in terms of revenues and losses, with a strong focus on making 2013 a strong year of recovery. It will also be looking at how to cash in its investment in the Smiths Electric Vehicles business (following the abandonment of its IPO) in order to fund even fast growth in 2013.