M&A Progress and Trading Update

RNS Number : 0490K

Tanfield Group PLC

24 July 2013

 

For immediate release                                                                              24th July 2013

TANFIELD GROUP PLC ("Tanfield" or the "Company")

M&A Progress and Trading Update

Tanfield Group PLC, a leading manufacturer of aerial work platforms, is providing the following update on the M&A activity announced on 20^th February and 15^th April 2013. The proposed sale process of the Snorkel Aerial Work Platform division is ongoing, with a number of potential acquirers proceeding through due diligence and the negotiation of a Sale and Purchase Agreement.  We continue to be supported by our M&A advisor, and the timescale is being managed in the most practicable manner.  

As noted in the 2012 financial statements issued on 28^th June 2013, the Company requires the introduction of additional working capital to be able to return to sustained profitability. Therefore, the business is currently being managed to conserve cash through the M&A process.  Given that growth requires investment of cash into working capital, the group has therefore not been able to fully respond to the opportunities in the market.  However, those opportunities remain strong driven by the ongoing recovery in the sector. Snorkel's product range, brand and reputation continue to generate strong demand in the market and the board believes this to be of major importance to the engaged potential buyers. 

Smith Electric Vehicles Corporation, in which Tanfield holds 25%, continues to extend its bridge financing as it follows its ultimate strategy of seeking a listing on a public market.

Further updates will be issued in due course.

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 www.buchanan.uk.com	020 7466 5000

 

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