Tanfield’s revenues creeping up

28 September 2012

Darren Kell, Tanfield Group chief executive.

Darren Kell, Tanfield Group chief executive.

An increase in turnover in the second quarter of 2012 has resulted in Tanfield reporting higher revenues for the first half of 2012 - £24.1 million than over the same period in 2011 (£23.7 million) a 1.7% increase.

Tanfield, the parent company of Snorkel, said, “Until the second quarter, in spite of the strength of demand for our products, revenue was declining owing to lack of component availability, resulting from supply chain issues and working capital constraints.”

Darren Kell chief executive officer of Tanfield said, “Darren Kell, CEO of Tanfield, said: "We made steady progress from a low base during the first half of 2012, as global demand for aerial work platforms continued to recover."

"Since the injection of working capital [£11 million] in March, the business has witnessed monthly output improvements, with the major step-change impact from our supply chain investment occurring late in the third quarter after the end of the half year. Margins have improved, losses have narrowed, and the Company predicts having its first post-recession break-even month in October. The outlook for 2013 looks positive, with the company remaining on track for full year profitability."

Tanfield reported that trading in the third quarter of 2012 had increased on the second quarter. The company said that because of the length of lead times for many of the key components it was only now (at the end of the third quarter), seeing a significant increase in deliveries of certain components to the facilities to support the planned production ramp-up.

Tanfield said, “As revenue levels increase we continue to make progress towards break-even and we anticipate our first post-recession break-even month being October 2012.”

Based on the company’s on-going requirements for working capital to fund growth, Tanfield’s Board has decided not to declare a dividend for the period.

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