Snorkel sale inches closer

Tanfield Group has instigated a formal review into the potential sale of Snorkel, ahead of expected operating losses.

The announcement came in a trading statement in which the group said it had raised UK£2.1m by placing 10.5 million new ordinary shares with institutional investors.

“In parallel with ongoing discussions regarding the potential sale of the powered access division, the Company has instigated a formal review for a potential sale of that division,” said a company spokesman.

Concerning the placement of shares, the spokesman added: “The net proceeds of the placing will be used for general working capital purposes. Together with the recently agreed debt facility, this will allow the company to respond to market opportunities in the 2013 buying season.”

The company added that it expects to announce its preliminary full year 2012 results in April. It forecasts turnover for the year of about £45 million and an operating loss of approximately £15.5 million.

The full information about the share placing is as follows: the placing by Tanfield agent WH Ireland is for an aggregate of 10.5 million new ordinary shares at a price of 20 pence per share.

This comprises 7247826 shares to be issued under existing authorities and 3252174 further shares, the issue of which is conditional on the passing of the resolution by shareholders at the Annual General Meeting on 15 April.