21.11.2023

Profit boost for Snorkel

The third quarter results for Snorkel have been published, showing a strong pick up in margins and profits.

The results were disclosed through former owner Tanfield, which retained a 49 percent stake when it sold the business to Don Ahern in 2013.

YTD

Total revenues for the nine months to the end of September were 10.8 percent higher than the same period last year at $145.1 million. Meanwhile the company reported a pre-tax profit of $1.7 million, compared to a $12.7 million loss at this point last year.

Third Quarter
Third quarter revenues jumped 20.5 percent to $51.1 million, with a pre-tax profit of $638,000 compared to a loss of $3.8 million a year ago.

Legal issue
Tanfield still hopes to get paid for its stake, in the business which it has on its books for just over £19 million ($24 million). The trial date aimed at settling the claim has once again been pushed back and is now likely at the end of next year.

Vertikal Comment

This is a particularly good result for Snorkel, given that Don Ahern sold its largest customer – Ahern Rentals – to United Rentals at the end of last year. Many thought that this would seriously dent sales at Snorkel. Although it is possible that the deal with United included the delivery of machines that were ‘on order’ when the transaction was completed? The true test on that theory might well be next year’s results.

The numbers are certainly the best we have seen from the company for some time, it is just about possible that the company will reach $200 million for the full year, with would represent an 18.5 percent increase over 2022.

All in all, another positive set of numbers.