06.02.2009

Tanfield releases trading statement

Tanfield, owner of UpRight and Snorkel aerial lifts has released a trading statement stating that its full year 2008 revenues were £147 million, almost 20 percent up on 2007, largely due to a full year’s of Snorkel revenues, compared to less than six months in 2007. Although the first half of 2008 also posted strong organic growth.

The company also stated that it has returned to a break even basis after a number of loss making months prior to implementing cost cutting measures to adjust to market conditions.

It also says that while its cash position dipped towards year end as customers held onto cash. Its year end position was £11.1 million. Since then the situation has continued to improve. Cash balances at the end of January 2009 were £13.1m.

The company statement said: “As previously notified we experienced much poorer market conditions in the second half of 2008. The Group had a number of loss-making months before the impact of cost cutting restored us to a break-even position on a monthly basis, before exceptional restructuring costs.”

“Trading conditions in all of our markets remain challenging, with little visibility and reduced order intake. The swift and decisive steps taken last year to downsize the business have substantially mitigated the risk of overexposure. Because of this prompt action, we can maintain the business at a much lower break-even level than historically was the case.”

Tanfield says that market conditions in the USA are particularly challenging and as a result Snorkel production has been subject to temporary production suspensions on an as-needed basis, to continue to match output to demand.

Tanfield has also restated the fact that the group is debt-free without banking covenants or interest costs and says that it does not anticipate this changing in the short to mid-term and is therefore well positioned to continue to ride out the downturn.


Comment will follow when the full results are issued