Sales at Snorkel continued to grow during 2016, with an increase of 19% to $130.5 million, compared to $109.9 million in 2015 and $85.3 million in 2014.
The figures were released by Tanfield, which owns 49% of Snorkel since selling 51% of the business to the Ahern family of companies in 2013. Tanfield values its share at UK£36.3 million (US$46.8 million).
The statement went on to add that despite market conditions continuing to be challenging, Snorkel has achieved improved market share in its targeted regions allowing it to create a broader and more diverse customer base.
“This is expected to help to underpin further growth that is expected for 2017, including some large rental companies who have not purchased Snorkel product for a number of years. This is testament to the progress Snorkel have made in recent years and the improvements to the product range, build quality and customer service,” the statement continued.
Snorkel 2016 year end accounts report an operating loss, excluding depreciation, of US$2.8 million, compared to a $10.6 million loss in 2015 and $14.9 million in 2014. Tanfield said $1.9 million of this loss was incurred in the first quarter of the year with the business breaking even during some of the later periods.
“The significantly reduced operating loss is partially linked to the increased sales levels but is mainly as a result of the focused cost down activity that has taken place during 2015 and 2016 coming to fruition, thereby reducing the bill of material costs and lowering the break-even sales point.”
The Tanfield board understands Snorkel is again targeting double digit growth in 2017 from its UK manufacturing facility, which mainly provides product to the European marketplace. “Given the extent to which the US manufacturing facility is dependent upon Ahern Rentals as its principal customer, Tanfield are unsure at this point whether there will be growth in that facility in 2017.”
Nevertheless, the board believed Snorkel could still achieve combined growth and is expecting it to be profitable for the 2017 year.