Manufacturer gets back in the black
Thursday 21 February 2013 5:00
Tanfield Group is heading for its first full year profit in five years and has had approaches for its cherry picker business.
In a trading statement the County Durham based aerial work platform manufacturer reported revenues in the third quarter of 2012 grew month on month and break-even revenue level was achieved in October 2012 - the first such month since 2008.
Revenue had been falling until the second quarter despite strong demand for its products, owing to lack of component availability, resulting from supply chain issues and working capital constraints.
These problems were eased by an £11m investment raised in a fundraising.
The company reported that the resulting improved inventory profile has put it in a strong position to respond to the 2013 buying season that is expected to begin in the second quarter.
The company said in a statement: “The end markets continue to recover on the back of replacement demand and the company has received significant order forecasts from key customers, supporting a positive outlook for 2013 and the board's confidence in the ability in 2013, subject to continued favourable market conditions, to achieve its first full year profit since 2007.’’
In the six months to June 30 2012, Tanfield posted revenue of £24.1m, up on its £23.7m performance in 2011.
Tanfield also revealed it had received a number of approaches from “credible parties’’ expressing interest in making a strategic acquisition of its cherry picker business division.
The company said: “The board is considering these approaches and will provide an update in due course. Any disposal of this business would be subject to shareholder approval. There can be no certainty that any negotiations will result in an agreement to dispose of this business.’’