17.05.2022

Snorkel sales jump 40%

US based aerial lift and telehandler manufacturer Snorkel achieved sales of $155 million in 2021, up 40 percent on 2020, although margins declined from 7.2 percent to 5.4 percent, leaving the business with a loss of $just over $12 million, down from a loss of nearly $15 million last year. The numbers were disclosed in an update statement from previous owner Tanfield, which still retains a 49 percent stake.

Tanfield is currently in a legal battle with Snorkel owner Don Ahern who has stated that the terms of the 2013 takeover agreement allow Ahern to acquire the stake without further payment. The lawsuits continue in both the USA and the UK courts.

While the increase is substantial revenues remain well below that achieved in 2019, although fourth quarter sales improved by more than 69 percent to $41 million, suggesting an upward trend.

Tanfield is objecting to the declining margins in the belief that the numbers are distorted, it says that it has started an investigation.

Vertikal Comment

There is not much to add to this as Ahern does not disclose its results, it also has nothing gain by improving the Snorkel numbers until the legal battle with Tanfield has been concluded. The higher sales certainly reflect the strong market at the moment, while higher costs caused by supply chain issues could also explain the reduced margin percentages. Several other manufacturers have reported the same issue in their 2021 and first quarter results.

Comments

The realist
Tanfield - what an interesting tale of how to turn a large fortune into a small one. Must still be some cash to have out of the job.

May 17, 2022

Barecat
They had not enough money at the time to appoint a proper firm for handling the take-over terms. Also they found themselves smart, but Don Ahern is a much better business man.

May 17, 2022

hairy
"Tanfield is currently in a legal battle with Snorkel owner Don Ahern who has stated that the terms of the 2013 takeover agreement allow Ahern to acquire the stake without further payment."


How they could possibly screw up such a important thing, like properly describing , what are the terms in that (49%) purchasing option.

I think at least they should claw back all the lawyer fees if they had one.

May 17, 2022
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